Income

The Rich and the Rest of Us in the United States

Most of America is poor, broke, and getting poorer. So shows new Census statistics for 2011. Real median income for households declined 1.5% to $50,054 and has declined for the second year in a row. The household median income is 8.1% lower than 2007 and 8.9% lower than 1999!   The median belies the growing income inequality in the United States. Below is the Census graph of real household income by selected percentiles and illustrates our tragic unequal state. The top 5% increased their income by 66.2% while the the median income has only increased 19% since 1967. Real means inflation is removed.

household income percentile 2011

Wage Statistics Paint a Bleak Picture for Working America

Most economists and the press look at personal income to think about America and wages. But there is another set of statistics which paints an even more stark picture. The social security administration publishes wage data, the last year available is 2010. While the average wage was $39,959.30, 66.2% of wage earners make less than this amount The median wage is $26,363.55. That means 50% of all wage earners in the United States earned less than $26,363.55 annually. That's poor.

workers per wage 2010

Headlines Blare Americans Lose 40% of Their Wealth Yet Income Decline is the Real Horror Story

The Federal Reserve released a report, the 2010 Survey of Consumer Finances. This is a report on household wealth from 2007-2010, removing effects of inflation. No surprise, median net worth declined by 38.8% from 2007 to 2010 and is down to 1992 levels. Why this should be no surprise is due to the housing bubble and declining home values. A home is the largest asset many people have.

How Many People are Poor in the United States?

It seems the entire world has been confused by the Census and understandable so. This past week saw dueling quotes on the number of people in poverty in the press. There are actually two major measures of poverty for 2010 and the experimental, research measure was released this week. This supplemental poverty measure shows there are more people in poverty, 49.1 million, than the official tally, 46.2 million.

46.2 Million People in Poverty for 2010

The Census released a comprehensive report on poverty, income and health insurance coverage in the United States for 2010. There were 46.18 million people living in poverty, in the United States. The Census population for 2010 was 305,688,000. This means that 15.1% of people in the United States are below the poverty thresholds, or one in 6.6 people.

 

Saturday Reads Around The Internets - We're Pretty Darn @&*)...Oops, Censored

shocknews
Welcome to the weekly roundup of great articles, facts and figures. These are the weekly finds that made our eyes pop.

 

We're Pretty Darn F@#&ed

Seems Economist Christina Romer, former Council of Economic Advisers chair, let her hair down and called it on the S&P downgrade.

The Money Party on the Road to Ruin

Michael Collins
thelastroad.jpg
The Money Party is destroying the United States. For ten years, there have been no new jobs with flat income. Unemployment and poverty are making a big comeback. The party consists of those who own and control concentrations of great wealth and the select few who serve them (their Mandarins). Based on the efficiency of the demolition job, you have to wonder, is this is by design? If greed, ignorance, and paranoia constitute a plan, then they are master planners. (Image)

Look at the glaring problems below. Then ask yourself, has there been one single program implemented to address any of these problems, just one? Our elected representatives enable the relentless process of driving down the United States. They bicker and fume at the edge of issues. However, when it comes to neglecting the real needs of citizens and the country, they are as one. All rewards and resources flow to their patrons and owners, the made men and women of The Money Party. We are nothing to them.

More Fluff, No Stuff - Joint Economic Committee Meeting

When is our Congress going to kick those lobbyists to the curb and do the right thing? Don't hold your breath! The Joint Economic Committee held a hearing on July 23, entitled, How Much More Can American Families Be Squeezed By Stagnant Wages, Skyrocketing Household Costs, And Falling Home Prices?

 

Now from the title, one might wonder if the question is poised to Wall Street wondering just how much money is left to pilfer from the pockets of the middle class. Still, there is always good information and rhetoric in these hearings.

 

Incomes and Spending Declined in April

Average (not median) inflation-adjusted incomes and spending declined in April as average per capita disposable incomes fell back to levels of last summer.

 

Today’s BEA report on personal incomes for April shows that total PRICE ADJUSTED incomes fell -0.1% as sharp declines in total real compensation of -0.4% and real proprietor’s incomes of -0.3% were only partially offset by a remarkable spike in real rental income, up 12.7%, and government unemployment insurance payments, up 3.7%.

Beware analysts, media and politicians that (still!) ignore the effects of inflation on incomes and spending. Prices rose 0.23% in April.

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