rssBuffett: We’re Still in a Recession
Wednesday, September 29, 2010 at 11:42 am
- 24 Comments
Speaking on CNBC, Warren Buffett, the head of investing giant Berkshire Hathaway and market oracle, told Becky Quick the economy is still in a recession, in his book.
“We’re not gonna be out of it for a while, but we will get out of it,” he said, elaborating, “I think we’re in a recession until real per capita GDP gets back up to where it was before. That is not the way the National Bureau of Economic Research measures it. But I will tell you that on any common-sense definition, the average American is below where he was before, or his family, in terms of real income, GDP.”
Buffett’s right, in that the recovery very much feels like a recession for the 14.9 million unemployed and for the tens of millions of workers whose wages have stagnated. But it is put in even starker relief just how bad the past 13 years have been for the average American worker. In 1997, the median worker (the one right smack in the middle of all income-earners) made $37,005. Today, she makes $49,777. Not bad, right?
Well, not quite. Adjusted for inflation, median wages are right where they were in 1997; in today’s dollars, our worker in 1997 made $49,309. Real median income today is in fact lower than it was any year in the entire 2000s — in any year since 1997 to be exact. That is despite the fact that GDP increased (in real terms) every year until 2008.
Here’s a chart that makes the changes a bit easier to see — plotting the proportionate changes in real income and real GDP over time.
Follow Annie Lowrey on Twitter
24 Comments
Pingback posted September 29, 2010 @ 12:35 pm
[...] This post was mentioned on Twitter by JobsDirectUSA, Carlos Gil and Max Alter, WashIndependent. WashIndependent said: Buffett: We're Still in a Recession http://bit.ly/ai0QGJ [...]
Pingback posted September 29, 2010 @ 3:19 pm
[...] Buffett: We’re Still in a Recession « The Washington Independent [...]
Pingback posted September 29, 2010 @ 4:05 pm
[...] Buffett: We're Still in a Recession « The Washington Independent [...]
Comment posted September 29, 2010 @ 4:39 pm
The NBER uses different criteria to mark the end of a recession. But Buffet, who may be trying to ingratiate himself with the public, is focusing on how people feel. And wages are stagnant and unemployment is still high.Technically we are in a recovery, as jobless claims are well off the peak and retail sales have slowly rebounded.
But this is a jobless recovery and confidence is languishing. The NBER seems to have stirred up a hornet's nest of resentment, appearing to be out of touch.
http://www.economy-tomorrow.com/
Comment posted September 29, 2010 @ 4:39 pm
The NBER uses different criteria to mark the end of a recession. But Buffet, who may be trying to ingratiate himself with the public, is focusing on how people feel. And wages are stagnant and unemployment is still high.Technically we are in a recovery, as jobless claims are well off the peak and retail sales have slowly rebounded.
But this is a jobless recovery and confidence is languishing. The NBER seems to have stirred up a hornet's nest of resentment, appearing to be out of touch.
http://www.economy-tomorrow.com/
Pingback posted September 29, 2010 @ 6:04 pm
[...] Warren Buffett argues that the recession isn’t over: [...]
Pingback posted September 29, 2010 @ 7:39 pm
[...] Says Berkshire Hathaway 'Well-Equipped' for SuccessionBusinessWeekBuffett: We're Still in a RecessionThe Washington IndependentTelegraph.co.uk (blog) -Comtex Smartrend -Investment Weekall 21 [...]
Pingback posted September 29, 2010 @ 7:50 pm
[...] Buffett: We’re Still in a Recession « The Washington Independent [...]
Pingback posted September 29, 2010 @ 10:57 pm
[...] Buffett: We’re Still in a Recession « The Washington Independent [...]
Comment posted September 30, 2010 @ 8:21 am
The NBER uses different criteria to mark the end of a recession. But Buffet, who may be trying to ingratiate himself with the public, is focusing on how people feel. And wages are stagnant and unemployment is still high.Technically we are in a recovery, as jobless claims are well off the peak and retail sales have slowly rebounded.
Pingback posted September 30, 2010 @ 9:25 am
[...] Buffett: We’re Still in a Recession « The Washington Independent [...]
Pingback posted September 30, 2010 @ 1:39 pm
[...] Buffett: We're Still in a Recession « The Washington Independent [...]
Pingback posted September 30, 2010 @ 6:00 pm
[...] Buffett: We're Still in a Recession « The Washington Independent [...]
Pingback posted October 1, 2010 @ 2:01 am
[...] Buffett: We're Still in a Recession « The Washington Independent [...]
Trackback posted October 2, 2010 @ 11:57 pm
Recession Busting Cash Generators…
I found your entry interesting and I’ve added a Trackback to it on my weblog :)…
Trackback posted October 3, 2010 @ 1:05 pm
Stocks climb on drop in unemployment claims…
I found your entry interesting thus I’ve added a Trackback to it on my weblog :)…
Trackback posted October 4, 2010 @ 4:34 am
Economy walking tightrope…
I found your entry interesting do I’ve added a Trackback to it on my weblog :)…
Trackback posted October 4, 2010 @ 4:36 pm
Ad slump leads Bee to cut 29 more jobs…
I found your entry interesting thus I’ve added a Trackback to it on my weblog :)…
Comment posted October 10, 2010 @ 1:12 pm
Looking for a efficient WMV to iPad Converter? Maybe this conversion software can give you a hand. United with convert function and edit function into one, WMV to iPad Converter gets more and more popular among iPad users who want to convert WMV to iPad. No matter for the profession or novice, this WMV to iPad Converter is the perfect gift. Free download is supported.
Pingback posted October 12, 2010 @ 9:15 am
[...] View full post on The Washington Independent [...]
Trackback posted March 8, 2011 @ 9:43 am
Anxiety Remedies…
[...]I like to honor other websites on the web, even if they are not related to my site, by linking to them. Below are some websites I think are worth checking out[...]…
Trackback posted March 10, 2011 @ 5:43 pm
Popular Sites We Like…
[...]some interesting sites worth visitng. We recommend all our readers go and check these out[...]……
Trackback posted April 11, 2011 @ 8:58 am
Recommended Sites…
[...]below you’ll find my recommended links page http://www.hemorrhoidtreatmentcurerelief.com/my-favourite-sites/ with some fantastic sites that I think you should definitely visit[...]…
Trackback posted September 4, 2011 @ 1:12 pm
Well written Articles…
[...]a couple of other related sources on the internet which are worth watching on this subject matter include things like[...]…
RSS feed for comments on this post.
Sorry, the comment form is closed at this time.
