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Editorial: Wealth back to 1992 level not very good

June 15, 2012
The Alpena News

The year was 1992.

The public got its first glance at the Internet via a text-based web browser that year. Johnny Carson hosted the Tonight Show for the last time, violence erupted in Los Angeles after four police officers were acquitted of beating Rodney King and "The Silence of the Lambs" won the Oscar for Best Picture.

So why exactly should we care about statistics 20 years ago?

Well, that's about how much you're worth in this world - the same amount you owned 20 years ago.

According to the Federal Reserve board this week, the Great Recession of 2007 shrank all of our wealth back to 1992 levels.

In a USA Today report Tuesday, in 2010 the median family's net worth in the country would be worth no more than it was in 1992, after adjusting for inflation.

"Median net worth declined from $126,400 in 2007 to $77,300 in 2010, a Fed survey of family finances found," the newspaper reported.

And, just for the record, theoretically the Great Recession ran from December of 2007 to June of 2009. We find those dates not accurate for Michigan residents, who have suffered much, much longer than the rest of the country. Thus, one could argue, our net worth might be worth even less.

Net worth is made up of many items according to the Federal Reserve study - assets such as stocks, bank accounts and real estate. It was real estate values that put the biggest hit to your wealth, according to study findings.

Think about this. You have been comfortable navigating the Internet for years and years now. In fact, many of you can't envision a world without the Internet. Imagine then how deep a setback it is when your wealth is the same as it was the year the Internet was just being formed.

Back to the Future was a fun movie we all enjoyed.

Back to the Future, when it comes to our wealth, is a horror flick of epic proportions because of the recession we all stumbled through.

 
 

 

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