According to a study by the Federal Reserve Bank of San Francisco, America has yet to take back the ground it lost in the 2008 during the financial crisis.
Bloomberg reports that gross domestic product remains below where its 2007 trend predicted the nation would be by now.
“Without the large adverse financial shocks experienced in 2007 and 2008, the behavior of GDP would have been very different,” the San Francisco Fed Research Advisor for Microeconomic Research Regis Barnichon and his co-authors wrote in the report.
They found that growth has been persistently hampered by a seven more percentage points than it would have been in the mild recession that should have taken place without the financial meltdown.
“This is a large number,” the report read.
This translates to an average loss of $70,000 per American in lifetime income.
Clearly, the subprime sins of our past rest a heavy bear-paw on the present.