Income Dynamics - 9/29/15
Despite the fact that the nation’s unemployment rate is down to five point one percent, three are many people who consider the U.S. economy to still be in terrible shape. Undoubtedly, there are many reasons for this, but no explanation seems as powerful as those related to income dynamics.
The U.S. Census Bureau recently released new data regarding incomes. Last year, the median American household had a lower income in inflation adjusted terms than it did in twenty thirteen. The median American household registered income of approximately fifty three thousand six hundred and sixty dollars, down one and a half percent from the year before. The Census reported that that change was not a statistically significant one, however.
Here’s what’s arguably more remarkable. Inflation adjusted income in twenty fourteen was nearly seven percent below its two thousand and seven, pre-crisis level. As indicated by writer Neil Irwin, it is seven point two percent below the figure for nineteen ninety nine. Twenty fifteen may turn out to be better, not because wages are rising rapidly, but because energy prices have fallen, which may be producing a temporary increase in inflation adjusted incomes.