(NNPA)—Although Feb. 14 is typically remembered for Valentine Day, this year that date brought new findings on the cumulative costs of the Great Recession—$13 trillion in cumulative losses in household wealth and high unemployment are the result of the Great Recession, according to a new Government Accountability Office.
Earlier research by the Center for Responsible Lending found that the spillover effects of foreclosures wiped out nearly $2 trillion in family wealth. From 2000-2010, African-American family wealth dropped 53 percent, and Hispanic families lost 66 percent. By comparison, average White household wealth dropped only 16 percent. The foreclosure crisis and resulting economic downturn have turned back the clock on previous wealth gains, especially in communities of color.
The GAO report was performed at the request of the Senator Tim Johnson (SD), chair of the U.S. Senate Banking Committee, and Rep. Michael Capuano (Mass., the ranking member of the House Subcommittee on Housing and Insurance.