New Census Data - American Family Real Income Goes Down

[taquinas101]

I remember reading a press release last month about how the US Census reported that US median household income has risen over the past year. Of course, this idea of robust growth did not seem to comport with my experiences in my community. Well, it turns out that median household income did grow, but when you compare growth under Bush to growth under Clinton, there simply is no comparison.

http://www.census.gov/prod/2006pubs/p60-231.pdf

For example, on page 11, the graph shows that real median household grew by over $5,000 under Clinton. However, under Bush, real median household income has yet to recover the levels reached under Bush. Bottom line: Americans are earning less when adjusted for inflation.

Page 47 of the census is even more damning, since it breaks out real income growth by quintiles.

Under Clinton (1992 to 2000):
1. The real income threshold for the top 5% of Americans grew from $135K in 1992 to $164K in 2000.
2. The top 20% of American households saw their real income grow from $124K in 1992 to $161K in 2000.
3. The middle 20% of American households saw their real income grow from $41K in 1992 to about $48K in 2000.
4. The bottom 20% of American households saw their real income grow from about $10K in 1992 to about $11.5K in 2000.

Bottom line: All Americans enjoyed real growth in income during the Clinton years, particularly the top 20%.

Under Bush (2000-2005):
1. The real income threshold for the top 5% of Americans grew from $164K in 2000 to $166K in 2005.
2. The top 20% of American households saw their real income FALL from $161K in 2000 to $159K in 2005.
3. The middle 20% of American households saw their real income FALL from $48K in 2000 to $46K in 2005.
4. The bottom 20% of American households saw their real income FALL from $11.5K in 2000 to $10.5K in 2005.

Bottom line: Only the top 5% of American households enjoyed any real income growth, while most Americans are poorer now then they were at the beginning of Bush's presidency. Moreover, the growth in income of the top 5% was at a substantially lower rate of growth then they enjoyed under Clinton.

The frustrating thing, of course, is that Bush will point to the anemic growth in non-inflation adjusted income enjoyed in the past year or so, and declare that his tax cuts are working, which is kind of like how freedom is winning in the war on terror.

[rzemanfl]

1. But, but I saw Elaine Chao on Labor Day and she told Soledad

O'Brien that wasn't true. :sarcasm:

[bluerum]

2. Yeah so? Those top 5% are the only ones that count. nt

[Anakin Skywalker]

3. Not Real News. I Predicted This.

Maybe it is news to Rethug voters. Even then I doubt they'd acknowledge this. Rethugs are like ostriches.

[taquinas101]

5. Census Is Wrong. Economy Is Strong. Bush says its growing.

Here's the latest from the GOP's official website sharing the good news of our robust economy.

http://www.gop.com/News/Read.aspx?ID=6530

In Bush's own words:

"Today OMB Director Rob Portman released the latest review. I'm pleased to report that it's got some good news for the American taxpayer. This economy is growing, federal taxes are rising , and we're cutting the federal deficit faster than we expected.


This good news is no accident. It's the result of the hard work of the American people and sound policies in Washington, D.C. This morning I'm going to discuss the way forward, I'll explain why our pro-growth policies are vital to our efforts to reduce the federal deficit, what my administration is doing to work with Congress to eliminate wasteful spending, and why we need to confront the unsustainable growth in entitlement spending."

http://www.gop.com/News/Read.aspx?ID=6425

The Whitehouse Reports:

http://www.whitehouse.gov/infocus/economy/

"The Economy Remains Strong, And The Outlook Is Favorable

Employment Increased In 48 States Over The Past 12 Months Ending In July.
Over The First Half Of This Year, Our Economy Grew At A Strong 4.2 Percent Annual Rate – Faster Than Any Other Major Industrialized Country.
Productivity Has Grown A Strong 2.4 Percent Over The Past Four Quarters, Well Ahead Of Average Productivity Growth In The Last Three Decades. Strong productivity growth helps lead to GDP growth, higher real wages, and stronger corporate profits.
Per Capita Disposable Income Has Risen 9.2 Percent In Real Terms Since The Beginning Of 2001.
Total Wage And Salary Income Increased In Real Terms At An Annual Rate Of 3.3 Percent In The Second Quarter. This follows an 11 percent surge in the previous three months.
Manufacturing Production Has Risen 5.6 Percent Over The Past 12 Months. Manufacturing productivity has grown 3.8 percent over the past four quarters."

[mom cat]

4. Its true. ... Ask my wallet.