A Miserable Median

08/02/2012 | Econ70 | Consumer Spending, inflation adjusted median income, losing ground, mean income, median income, negative income growth, US median income

A healthy economy exhibits many things including steady growth in median (and mean) income. Unfortunately, after peaking in ‘99 at $53,252, inflation adjusted median income in the US is now $49,445 – almost $4,000 lower than in ’99 and back to where it was in ’96! The same is true for mean income. Since consumer spending is 70% of GDP, the lack of income growth necessarily results in anemic GDP growth.

A Miserable Median

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