Home Business Household income rises to $59,039 in the US for two straight years

Household income rises to $59,039 in the US for two straight years

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Household Income

Solid financial gains were made by the Americans in the year 2016 after a prolonged stagnation of the household income, poverty fell and fewer people went without health insurance.
The increase in the household income was about 3.2% of the median, according to the Census Board. This was after Americans saw an increase of 5.2% of the median household income for the year 2015, the largest on record since 1968.
The inflation-adjusted median household income of $59,039 of last year surpassed the level reached in the year 1999 as the highest on record. Although Census Board officials discourage such comparisons because the method of measuring household income had changed in the year 2014.
The number of people living in poverty in the US fell from 43.1 million to 40.6 million, lowering the poverty rate from 13.5% to 12.7%. This is for the first time since the recession of the year 2007-09 that the rates weren’t higher than the pre-recession levels.
Also, the number of people without health insurance declined to 28.1 million. Dipping to 8.8% from 9.1%, the share of Americans without coverage.
One might connect this new development to the coming of the President Donald Trump, but the report reveals that in the final two years of the Obama administration, low-and-middle-income Americans made noticeable progress after a few years of the recessions.
Trump in his campaign appealed to the base of blue-collar households, arguing that President Obama had left working Americans behind. An agenda centred on tax cuts and get a tough trade policy aimed at reclaiming manufacturing jobs.
But one fails to notice that Donald Trump had also proposed cutting federal assistance for low-income households and rolling back the Affordable Care Act., which had provided affordable health insurance to millions of Americans.
Many economists raised concern over the average wage growth that has risen modestly despite the low 4.4% unemployment rate, fearing that this would make it tougher to find qualified workers. Earlier, after the recession when in the recovery Americans saw an increase in the average wage from 2% to 2.9% which has fallen to 2.5% again.
The household income was also bolstered by a healthy 2.2 million new jobs creation in 2016. Something to remember is that the US Census Board not only measures the wages an average American family earns but it also includes among other sources of income like bonuses, social security income, public assistance payments, interest and dividends on investments etc. in their data.

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