Median Income Falls Again.

Median income fell again an is now down to 1995 levels. It is down now to an inflation-adjusted $50,054. On the plus side, inequality is down a bit and the poverty rate—an annual income of $23,021 for a family of four—was 15.0% in 2011, down from 15.1% in 2010, compared with 12.5% in 2007.

This is troubling. 1995 as not a bad year, but it was not a great one either. It is bad enough when incomes do not rise very fast, as was the case a few years ago, but dropping is worse.

See the chart of the loss and gain over recent years.

Posted by Christine & John at September 13, 2012 6:10 PM
Comments
Comment #352884

Well, if one understands the planned path to globalism there is nothing to excite a response here, wilbur.

Bailing out the banks to the tune of circa $40B monthly will help to further lower worker wages. We’ve a long way to go yet to be competitive in the globalalised economy.

Buckle up for a long (decades) and pseudo-dangerous ride.

Otherwise, we have the Corpocracy we deserve.

Posted by: Roy Ellis at September 13, 2012 8:08 PM
Comment #352900

C&J,
You pulled up short with your article. The graph really doesn’t tell the story, does it? Because it shows an upward sloping trend with occasion setbacks for economic downturns. BUT. Income for the vast majority of people has remained flat since the 80’s. Unchanged.

It has skyrocketed for the 1%.

The richest 1% have taken all the gains over the past several decades.

What happened to unions?

How come Apple Computer has 600,000 jobs in China, and 50,000 jobs in the US?

Posted by: phx8 at September 14, 2012 12:42 AM
Comment #353073

But Obama wants to increase the middle-class. How do you take from the middle-class, re-distribute to the middle-class and create a middle-class? Inquiring minds want to know.

Posted by: Billinflorida at September 14, 2012 12:53 PM
Comment #353082

phx8

That is the MEDIAN not the average. At least half of all American household saw their income increase since the median went from around 45K to around 55K before dropping back down. We can reasonable postulate that most people’s incomes went up after the 1980s. That is what the median means. It is not the average. It cannot be pulled up by income rises only in the top 1% of even the top 49%. It must be the middle point.

I know that the myth of stagnating incomes has become a point of religious belief among the left, but it is not supported by the evidence.

In fact, the 1970s were a time of stagnation that we overcame in the 1980s and we enjoyed around a quarter century of good times.

Posted by: C&J at September 14, 2012 5:15 PM
Comment #353099

checking for comments

Posted by: Roy Ellis at September 14, 2012 7:58 PM
Comment #353113
In fact, the 1970s were a time of stagnation that we overcame in the 1980s and we enjoyed around a quarter century of good times.

How soon we forget C&J. Nixon and the end of the gold standard. OPEC and the 70% increase of oil prices in the early 70’s. The oil panic in ‘79. What we overcame in the ‘80’s was the oil panic and the rise in the cost of oil, as oil went down to $20 a barrel from $70 a barrel.

Which of course brings us to the Reaganomics fraud you brag about. Carter’s guy Volcker stopped inflation, Reagan swapped out to “supply side” economics or as it became known “voodoo economics, Clinton of course reversed course and then came GWB and the slide down the economic mountain into the crevasse of conservative stupidity.

Posted by: j2t2 at September 15, 2012 12:53 AM
Comment #353117

j2t2

I have not forgotten the reasons for the problems and how they were played. The bottom line is that the Bretton Woods system collapsed and the fundamental economic conditions changes.

Nixon ended the gold standard because it no longer worked. You may recall Charles DeGaulle encouraging French citizens to cash in dollars for gold, since the price of gold was higher than the official peg.

Also don’t overestimate the power of the president to manage economies or underestimate it in other areas. Oil prices spiked for reasons not directly under presidential control, but Carter’s naive policy in Iran did not help and his price controls made what would have been an unpleasant adjustment into a painful crisis.

But no matter the reason, the 1970s were indeed a time of stagnation and the twenty-five years after 1982 were generally good times.

There are lots of macro forces at work. We enjoyed roughly a quarter century of good times after 1948. This was based on unique post-war conditions which will never be duplicated. We went through a time of trouble from the late 1960s to early 1980s, after which we enjoyed stability for another quarter century. We fell into another adjustment in 2007. I hope we come out faster than the last time, but so far we have had five years of sideways movement.

Posted by: C&J at September 15, 2012 7:38 AM
Comment #353120

C&J sideways movement since ‘07 is actually quite good when we consider the conservatives intentional sabotage of the economy for political gain.

http://www.huffingtonpost.com/2012/04/25/robert-draper-anti-obama-campaign_n_1452899.html

Posted by: j2t2 at September 15, 2012 9:28 AM
Comment #353121
but Carter’s naive policy in Iran did not help and his price controls made what would have been an unpleasant adjustment into a painful crisis.

Whose price controls C&J? Seems the conservative memory includes the myths they need to perpetrate the fraud we call Reaganomics on the American people.

http://en.wikipedia.org/wiki/Nixon_Shock

http://en.wikipedia.org/wiki/1979_energy_crisis

Posted by: j2t2 at September 15, 2012 9:43 AM
Comment #353125

j2t2

“we consider the conservatives intentional sabotage of the economy for political gain.”

This is just plain silly. I doubt you believe.

Of course, you can always read the classic version of this kind of conspiracy theory, “The Protocols of the Elders of Zion”. These kinds of things always make better stories than the more prosaic truth.

Re price controls - do you not recall the fights over prices of gasoline in the late 1970s. I am glad to learn from your link that Carter began to deregulate prices for gasoline and my opinion of him has increased. However, I also remember that his authorities enforced the laws vigorously. If you don’t have prices below the market rate, you don’t have gas lines that last very long.

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