Economics 2009
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WHERE ARE WE AND HOW DID WE GET HERE? Economics 2009
description
Economics 2009. Where are we And How did we get here?. Brief Overview of the State of the Economy. The U.S. Auto Industry. U.S. Housing Market. U.S. Banks. Banks Continued. American Consumers. How Did We Get Here?. What Happened to Wage Growth?. - PowerPoint PPT Presentation
Transcript of Economics 2009
WHERE ARE WE
AND
HOW DID WE GET HERE?
Economics 2009
Brief Overview of the State of the Economy
Data SeriesJuly 2008
Aug 2008
Sept 2008
Oct 2008
Nov 2008
Dec 2008
CumulativeChange
Unemployment Rate 5.8 6.2 6.2 6.6 6.8 7.2 +1.4%
Change in Payroll Employment
-67 -127 -403 -423 -584 -524 -2,128,000
Average Hourly Earnings
18.06 18.14 18.17 18.23 18.31 18.36 +0.30
Consumer Price Index
0.8 -0.1 0.0 -1.0 -1.7 -0.7 -2.7
Producer Price Index 1.2 -0.9 -0.4 -2.8 -2.2 -1.9 -7.0
U.S. Import Price Index
1.4 -3.1 -3.6 -5.9 -7.0 -4.2 -22.4
The U.S. Auto Industry
U.S. Housing Market
U.S. Banks
Banks Continued
American Consumers
How Did We Get Here?
What Happened to Wage Growth?
Top Earners vs. Bottom 90% (the rest of us)
With No Growth in Wages,Savings Have Plummeted
Savings—U.S. vs. Rest of World
Incomes Flat, Expenses Growing, SavingsShrinking, Debt Expanding
Debt Payments Consume Larger Shareof Income
Debt Service Payments as Share of Disposable Income
Consumer Credit v. GDP: 1980-2008
Meanwhile, Housing Prices Have Skyrocketed
Lending Standards Have Relaxed
Homeowners Financed Consumptionby Taking Equity Out of Their Homes
Equity Values Have Fallen
How Much of Our Economic Growthis Attributable to the Housing Bubble?
Investors Inflated the Bubble
Near-term Future for Housing Prices?
