The cost of the financial crisis: $108k per household

Between costs and losses in home value and stock, the financial crisis cost $108,000 per American household, according to a new report by The Pew Trust. From the report:

“U.S. households lost on average nearly $5,800 in income due to reduced economic growth during the acute stage of the financial crisis from September 2008 through the end of 2009.[1] Costs to the federal government due to its interventions to mitigate the financial crisis amounted to $2,050, on average, for each U.S. household. Also, the combined peak loss from declining stock and home values totaled nearly $100,000, on average per U.S. household, during the July 2008 to March 2009 period. This analysis highlights the importance of reducing the onset and severity of future financial crises, and the value of market reforms to achieve this goal.”

Congress is working on a jobs bill addressed at families still reeling from the economic downturn. Learn more about the jobs bill in Voices’ legislative newsletter, and contact your representatives in Congress today!