The Median U.S. Household’s Income Rises to Above $61,000 Annually
A positive note for the American economy. According to a report released by the U.S. Census on Wednesday last week, middle-class income has risen to its highest levels since 2017.
Additionally, the national poverty rate recorded a massive decline as the rippling effects of a strong economy trickled down to turn the fortunes of millions of Americans.
As a matter of fact, the median American household recorded earnings of $61,372, which means that about half of all families brought in this income, with half earning less.
So What Does This Mean?
The fact that half of the American middle-class has surpassed the $61,000 means that families could be earning much more than they did in 1999.
However, the Census Bureau has noted that despite the median income rising, it does not mean that it could be statistically higher than that of 1999, or even 20007, a year before the economic recession took place.
That’s because of the change in methodology that was implemented in 2013 making these comparisons much more difficult to execute.
Additionally, there is also the issue of inflation, whereby the recently released figures have been adjusted to mirror the 2017 dollars.
Americans Getting Jobs Again
However, one cannot deny that middle-class household income has been on the steady rise for the past couple of years, ever since the economy bounced back from the massive 2008 recession. As Americans begin getting jobs again, households are receiving extra income from having new individuals in the home employed once more.
Moreover, the fact that these individuals are working additional hours is boosting household income more than ever. This is according to a statement released by the Census Bureau.
According to assistant division chief at Census Bureau, Trudi Renwick, the fact that individuals are moving from part-time work to full-time work could be one of the reasons why this increase in income is taking place.
Lowest Poverty Rate in a Decade
Additionally, the U.S. Census Bureau further reported that the decline in poverty rate by 12.3 percent is the largest that the country has experienced in over a decade. This could also be playing a major part, and a clear indicator that the effects of the Great Recession are now fading away.
However, the economy has not been as kind to everyone. Inequality is still at its highest levels, and as per data released by the Census Bureau, the number of Americans still living without health insurance still remained the same despite several measures that have been put in place to extend coverage to more people as per the Affordable Care Act.
The number of Americans without health insurance remained the same at 28.5 million people, or 8.8%, despite the economic boom that the country is currently experiencing.
Hourly Wages Still the Same
According to the former chief economist to ex VP Joe Biden, what will make Americans move forward is them to receive higher hourly wages.
That being said, a high portion of income growth that has been experienced has been a result of people getting jobs once more.
However, economists across the political divide have agreed that the growth in wages has been quite disappointing and that the situation would be better in terms of productivity if wages were increased.
According to the Head of the American Action Forum, Douglas Holtz-Eakin, the income that’s been generated has resulted from individuals going back to work after the recession, and not from any growth in wages.
The Same Number of Americans Still Poor
As a matter of fact, the Census Bureau unveiled that income from full-time works recorded a slight decrease last year, showcasing the fact that wage growth has remained sluggish due to effects such as a rising cost in necessities, rent, and price gases.
However, it is worth mentioning that this data was released by the Bureau prior to President Trump and GOP leaders scaling back regulations and approving tax cuts in a bit to improve wages, productivity, and economic growth.
On the other hand, Democrats have countered, claiming that the tax cuts were mainly put in place to favor America’s wealthy society.
As a matter of fact, records show that over 39.7 million Americans are currently living in poverty, a number that has remained relatively the same from 2016. This is the case despite the fact that the poverty rate is currently at its lowest since 2006.
More in Pocket Change
According to Facebook, the Recent Hacking Might Have Resulted in 50 Million Accounts Being Exposed!
In a shocking turn of events on Friday last week, hackers managed to hack the digital login codes of Facebook, giving...October 15, 2018
Here Is Why Mortgage Fraud Is Flooding the Housing Market!
There’s no denying that in this day and age, more buyers are looking to get into the housing market, the market...October 14, 2018
HSBC Bank Has a Unique Way of Teaching Children on Achieving Financial Independence
When we talk about finances, the first thing that comes to our mind is to consult with a financial advisor. Our...October 14, 2018
How to Deal With the Rising Insurance Costs
Most financial experts will advise the young workers to start saving early. If you save early, you’ll have more time, freedom,...October 14, 2018
Here Are the Top Brands Adored by Millennials Today!
The stats don’t lie. Millennials have a taste for the fancier things in life. Perhaps one of the reasons why is...October 13, 2018
Ford Plans to Layoff Its Labor Workforce, Putting More Than 70,000 Employees At Stake!
As if Tesla’s controversies weren’t enough to shake the whole car industry, thousands of Ford fans, customers, and investors all over...October 13, 2018
Analyzing Hong Kong’s Massive Real Estate Bubble, and Why it Won’t Be Slowing down Anytime Soon
Without a doubt, experts have cited Hong Kong as the region where the subsequent real estate implosion could be happening. This...October 13, 2018
How to Invest In Yourself and In Your Career
Some employers make it their commitment to invest in their own employees to help them grow in their respective careers. Some...October 13, 2018
Tesla and Snapchat Might Just Be up for Sale: Who Are the Likely Giants to Purchase Them?
Things aren’t looking too bright for Snap as the 5th largest social media app is on the verge of being sold...October 13, 2018