American Dream seems to be shrinking

RENO, Nev., June 9 (UPI) -- The U.S. median family income fell behind in each year from 2001 to 2007 even as the economy grew, economists said Monday.

The median income -- where half the family incomes stand above and half below -- fell from $59,398 in 2000 to $58,407 in 2007, USA Today reported.

"This is the first business cycle on record where the median family income failed to recover its previous peak," Jared Bernstein of the Economic Policy Institute told the newspaper.

The slide is likely to provoke downsizing in cars, homes and gadgets, the report said.

From 1975 to 2007, the median family home size grew by 50 percent. But shrinking credit and ballooning heating prices are likely to lead to smaller house building projects.

The average car size is also likely to shrink as consumers back away from pickup trucks and sports utility vehicles in the wake of soaring gas prices.

"Even in my 20s, everything seemed to be very obtainable," said Bob Ryczko, an information technology professional in Reno, Nev., who earns a base salary around $130,000.

"Now with the economy, oil prices and everything, it's just very difficult for Americans to stay in the middle class. We're getting squeezed out," he told USA Today.