Wednesday, July 13, 2011

Financial Crisis Cost U.S. $7,300 Per Person in Foregone Consumption

By Emily Knapp

According to a researcher at the Federal Reserve Bank of San Francisco, the 18-month recession has cost over $7,300 per person in foregone consumption as of May 2011 — that’s an average of $175 a month lost by every American since the financial crisis began. With roughly 309 million people in the country, according the 2010 census, that’s about $2.26 trillion. According to the report, that is the “most severe economic contraction since 1947 as measured by the peak-to-trough decline in real GDP.”

The San Francisco Fed calculated the figure by comparing personal consumption expenditures between December 2007 and May 2011 with those before the crisis. According to senior economist Kevin Lansing, per capita consumption is still down 1.6%. But why such a dramatic decrease in consumption?

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  1. $7300 per person is astonishing. The government definitely needs to do something. $175 a month per American is a lot of money to lose. Pretty soon we will hit the debt wall and we will not be able to borrow anything. That's when Congress will finally realize something should have been done a long time ago.

  2. I have a web site where I give advise on penny stocks and stocks under five dollars. I have many years of experience with these type of stocks. If their is anyone that is interested in these type of stocks you can check out my web site by just clicking my name. I would like to comment about double digit inflation. I am very disturbed by the lack of progress on cutting the budget deficit. It will require large tax increases and budget cuts to bring the deficit under control. When nobody will buy the debt obligations of the united states than the buyer of last resort will emerge and who might be that buyer of last resort’ the government itself. In other words the massive money printing will have begun' welcome weimar republic two thousand ?

  3. Don't worry. Soon The Lord will pay everybody. When the MAN comes - don't offer your money, He won't take it. Don't offer your apology, He won't listen to you. He'll take what belongs to Him - your SOUL.


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