More Money

While it’s often reported that US median income has barely budged in inflation-adjusted terms since 1979, new data show median income up 51% since 1979 to $73,200. Three methodological improvements are why. First, household size is shrinking. Second, the new results study after-tax income and include more complete measures of government assistance. Lastly, a more comprehensive and accurate inflation measure is used, the PCE, not the CPI. Caviar for breakfast!