Good News On Income

The Bureau of Labor Statistics released updated figures connected family and individual income.  The news is rather positive:

Real median family income successful 2024 was a grounds $83,730, reversing a downward inclination that began successful 2020 pinch nan pandemic.  Real median individual income besides reached a caller precocious astatine $45,140 successful 2024.[1]  Both of these figures proceed a wide rising inclination that has been going connected since nan 80s.[2]  What’s absorbing to statement is that, contrary to nan stories told by nan Left and nan MAGA Right, American incomes are not stagnating.  Real median family income is up 38.6% since 1984, and existent individual median income is up 57.1% since 1974.

In bid for existent income to beryllium mostly rising, nan system needs to beryllium mostly growing.  Looking astatine nan data, stagnation happens erstwhile we are successful recessionary periods.  It grows wherever we are mostly growing.  Some, for illustration E.J. Antoni, argue we’ve been successful a recession since 2022.  The information do not support that contention.[3]

In nan short run, location surely are concerns astir nan US economy: tariffs, anemic employment, stubbornly precocious inflation, and expanding economical isolationism.  But, successful nan agelong run, nan US system still has legs.  To conclusion defeatism, we must look astatine nan information and return bosom successful nan optimistic signals it sends.

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[1] To caput disconnected immoderate objections: “real” intends “inflation-adjusted” and “median” is nan constituent wherever half of households are supra and half beneath that value, truthful outliers for illustration nan ace able and ace mediocre will not power nan number.  These results are not being driven by ostentation aliases gains successful conscionable nan ace wealthy.

[2] Real median family income information spell backmost to 1984 while individual income goes backmost to 1974.  Given that family income mostly tracks individual income, it’s probable that family income apt was rising earlier than 1984, too.

[3] There are different empirical and theoretical issues pinch nan statement that nan United States has been successful a recession since 2022.  See, for example, America successful Recession Since 2022?  A Critique of Antoni-St. Onge by UW-Madison economist Menzie Chinn.