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Census data shows continued gains for middle-class Americans and little evidence of rising income inequality

Illinois Review by Illinois Review
September 19, 2018
in Illinois News
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The economy is doing alright. Mark Perry reports some data from the latest Census Bureau report on Income and Poverty in the United States:

Median household income last year of $61,372 was an increase of 1.8% from 2016 and brought median income for US households to the highest level ever, above the previous record level last year of $60,309. The income gain last year was the fifth consecutive annual increase in real median household income starting in 2013, following five consecutive declines from 2008 to 2012 due to the effects of the Great Recession. The last period of four consecutive gains in annual median household income was during the late 1990s at the end of the longest economic expansion in US history (120 months from March 1991 to March 2001). Although it doesn’t get as much attention as median income because it’s influenced by outliers on the high-end, average household income also increased to a new record level last year of $86,220, which was an increase of 1.5% from 2016 and the seventh consecutive annual increase starting in 2011. […]

Both the average and median income per person in the US reached all-time highs in 2017 of nearly $34,000 (in 2017 dollars) for average income per person, and $24,160 for median income per household member last year. Compared to 1975, the average household income per US household member has increased by 74% from $19,500 to $34,000, while the median household income per person has increased by 45% from $16,600 to $24,160.

[Mark J. Perry, “Census Data Released Today Show Continued Gains for Middle-Class Americans and Little Evidence of Rising Income Inequality,” American Enterprise Institute, September 12]

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