Home
About the Firm
Our Services
Client Update
News Center
HA Newsletters
Financial Briefs
Featured News
Articles Of Interest
Client Center
Account Lookup
Contact Us
Disclosure

Featured News


More Articles  Printer Friendly Version

 
Featured News    Financial Briefs    Market Data Bank    Articles Of Interest    

Widespread Misinformation Follows Household Median Income Report

Release of the U.S. Census Bureau's annual report on median income received widespread press coverage since its September 12 release, much of it misleading.

Some press reports said it was evidence of rising income inequality. Others said it was just the latest confirmation of two-decades of wage stagnation and a struggling middle-class.

Independent economist Fritz Meyer says household median income is a poor measure of American wealth distribution and economic progress of Americans. His research belies widely-held notions about wealth inequality and wage growth of Americans.

The three lines in this chart represent the percentage distribution of American households across nine income brackets.

Over the last 40 years, the middle-class indeed did grow smaller. However, it was because the proportion of U.S. households in upper income brackets rose strongly.

In 2017, 7.7% of U.S. households were in the highest annual income class — $200,000 and over annually — compared with 1.6% in 1977.

Meanwhile, compared to 1977, when 11.5% of U.S. households fell into the low-income bracket — between $15,000 and $24,999 of income — compared with today when just 9.6% of U.S. households are in that low-income class.

The middle-class — households with between $50,000 and $74,499 of income — is not vanishing. From 22% of U.S. households in 1977, only 17% of American households in 2017 fell into the middle-class. But that's because 7.7% of households were in the $200,000 and over income class.


This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial advice without consulting a professional about your personal situation. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. Past performance is not an indicator of your future results.


Email this article to a friend


Index
Business Owners: Avert Obstacles To Tax Savings
Despite December Turbulence, Economy And Business Optimism Were Strong
7 Tax Breaks Eliminated Or Curtailed
Latest Forecasts Show Economy Is Doing Okay
Uncle Sam Wants You Investing In Poor Areas
A Poignant Moment In Financial History Sparks Stocks
Sun Starts Setting On Solar Tax Credit From Uncle Sam
'Twas The Last Trading Day Before Christmas
Stocks Plunge When Investors Earn The Equity Risk Premium
Stock Plunge Nears Bear Territory After Fed Hike
HSA Or FSA: Which Is Better For Medical Savings?
A Last-Minute Reminder To Give Wisely And Charitably
Year-End 2018 Taxes And Your Home Office Deductions
Key Facts About Tariffs, Interest Rates, And Economic Strength
Strategic Considerations In Funding College
Fed Chair Extends A Dovish Hand, Lifting Stocks

This article was written by a professional financial journalist for Heling Associates, Inc. and is not intended as legal or investment advice.

©2019 Advisor Products Inc. All Rights Reserved.