Low interest rates and easy money policies imposed by the Federal Reserve also helped fuel a massive rise in U.S. equity and property values, a boon for those wealthy enough to invest after the crisis. But that boost has also left much of the working class behind.
Close to 8 million Americans lost their homes to foreclosure between 2007 and 2016, according to data from business intelligence firm CoreLogic, and high property values have prevented first-time and credit-troubled buyers from finding affordable homes.
“That has really far reaching equality effects when the most important source of wealth for lower for middle class families is a owning a home,” Petrou said.
“If you look at average numbers, the economy is doing great,” he added. “If you differentiate the economy by who’s doing well, it stinks.”
Now add the fact that most new ‘jobs’ are part time, no benefits, no retirement, no healthcare, and lower wages than union jobs in the 60’s.
Many people have to work 2 or 3 jobs to make it, and still cannot afford a home. College debt and credit card debt has exploded and this also affects what people can afford in terms of a home of their own.