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News Flash: You Are Poorer

U.S. INCOMES PLUNGE TO 1989 LEVELS …  || By FITSNEWS || After posting a modest increase last year, median real household income in the United States – a.k.a. household income that’s adjusted for inflation – declined considerably in 2014. This key metric of individual prosperity stood at $53,657 last year –…

U.S. INCOMES PLUNGE TO 1989 LEVELS … 

|| By FITSNEWS || After posting a modest increase last year, median real household income in the United States – a.k.a. household income that’s adjusted for inflation – declined considerably in 2014.

This key metric of individual prosperity stood at $53,657 last year – down 1.5 percent from last year’s mark of $54,462.  It’s also off 7.2 percent from its 1999 peak of $57,843.

In fact according to our friends at Zero Hedge, the number hasn’t dipped this low since 1989.

Take a look …

(Click to enlarge)

real median income

(Via Zero Hedge)

The data was released as U.S. president Barack Obama attended a business roundtable in Washington, D.C.

“America’s winning right now,” Obama told the group.  “America’s great right now.”

Mmmm-kay.

Here’s the thing about this number: Unlike the unemployment rate or gross domestic product, it is impervious to spin.

No matter how aggressively the “doom and gloomers” (a.k.a. those of us here at FITS) try to warn of dark clouds on the horizon, or no matter how hard the “rainbows and unicorns” (a.k.a. the “everything is awesome”) crowd tries to push its “happy days are here again” nonsense … neither school of thought can ignore reality.

And the reality is this …

You. Are. Poorer.

So …

Party like it’s 1989.  Because according to your bottom line, it is.

***

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47 comments

TroubleBaby September 16, 2015 at 12:25 pm

Income to 1989 levels, but rest assured the cost of living isn’t at 1989 levels.

As a poster here once said, “Inflation isn’t a problem.”…lol

Reply
Todd September 16, 2015 at 1:42 pm

The numbers quoted are inflation adjusted, dude. That would likely include the change in cost of living. House building has probably gotten cheaper in real dollars since 1989. Better equipment, cheaper materials, etc. Any increase you can blame on taxes.

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TroubleBaby September 16, 2015 at 2:24 pm

“That would likely include the change in cost of living.”

You bring up a good point, but we don’t have any insight to the metrics being used for adjustment.

If we look at how the CPI is calculated, it probably gives us a clue. For example, substituting hamburger for steak, and other such changes in the “basket of goods”.

Another example of the importance of the metrics is when they consider that you can buy a phone today that is thousands of time more powerful today and costs far less than a PC of twenty years ago.

The bureaucrats register that as a CPI drop even if the price of eggs, meat, & rent go up and how those things are weighted or if they are even included in the basket of CPI commodities is important.

It’s a shell game.

Look at the big things people spend money on that are necessary like food, shelter(housing over a 30 year run, not 10),healthcare or cars…not a pretty picture. Or even not necessary, but important…like college.

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Skewed Metrics September 16, 2015 at 2:47 pm

Eggs, beef, and rent have gone up in recent years for many reasons outside of general inflation, so why you are mad that those items can’t be counted towards what inflation is considered to be is a little bit silly.

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TroubleBaby September 16, 2015 at 3:32 pm

Did I limit myself to eggs, beef, & rent?

No.

What I find silly is substituting hamburger for beef steak as “equal” in a commodity basket, but to each their own.

Blah Blah Blah September 16, 2015 at 12:26 pm

Hourly wages dropped to 2004 levels and remain there. Government pay skyrocketed over the last 15 years, greatly surpassing the private sector in many areas. So many poor in SC. So many low wage earners in SC. Hence, one reason Boeing set up in SC and another reason Volvo is too.

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truthmonger September 16, 2015 at 12:36 pm

Government pay did NOT “skyrocket”. Call yourself Lie Lie Lie….

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Sic Semper Tyrannis September 16, 2015 at 12:37 pm

Close, SC is pretty much a third world country is the real reason.

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Rocky Verdad September 16, 2015 at 12:59 pm

But see, here’s the thing. For me, I’m lucky enough that I’m making 30% more than I did in 2009. But I have an advanced degree and 22 years experience in my field. What gets me, is those who think that just because they graduated from High School, that they get a job for life without having to invest time and effort into constantly improving their skills, or getting more education. I realize making $14 an hour is cool as beans when you’re 24 years old and you get that job with the cable company. But don’t think 20 years later if your doing that same job you’re going to be making $74 an hour. Because you won’t.

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Tazmaniac September 16, 2015 at 1:15 pm

I call that phenomenon “dedication to non-advancement in your job”. Willingness to stay at an entry level until retirement is not a plus.

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Rocky Verdad September 16, 2015 at 3:49 pm

Yeah, but these Trumpistas (not all as Flip is an example of highly educated – though an inigma at times) – they grew up belieiving the government promised them they’de always have a spot at the plant, the plant would never close, and they’d always get a raise.

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flip September 16, 2015 at 1:43 pm

Democrat Party front runner communist Bernie Sanders is telling them they don’t need to work.Everything will be free and the lazy ass kids have been so poisoned in the failed liberal public schools, they still don’t give a shit about achievement.

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I'd Like To Hear That September 16, 2015 at 2:21 pm

Can you link me to the video where he said that? Just curious to hear it.

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Rocky Verdad September 16, 2015 at 3:48 pm

Screw him. This is America. Get off your ass and work. Ain’t nothin’ free here.

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Rocky Verdad September 16, 2015 at 3:48 pm

And yes Flip – I mean that.

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Rocky The Retard September 16, 2015 at 2:24 pm

Full of shit as always.

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Great Comeback Kid September 16, 2015 at 2:25 pm

I especially like the part where you countered all the points he made with logic and facts. You’ve added so much to the conversation.

Reply
Rocky Verdad September 16, 2015 at 3:47 pm

Aw shit.

Reply
Rocky The Retard September 16, 2015 at 2:25 pm

Shit coming out of your ears and nose now.

Reply
Rocky The Retard September 16, 2015 at 2:25 pm

Shit coming out of you eye sockets.

Reply
Rocky The Retard September 16, 2015 at 2:25 pm

Shit in your drawers.

Reply
Rocky The Retard September 16, 2015 at 2:26 pm

The best part of you ended up as a shit stain on your mother’s mattress.

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GT Is In A World Of Shit September 16, 2015 at 2:27 pm

GT’s poop fetish has gotten out of control.

Ain’t that some shit?

Reply
Rocky Verdad September 16, 2015 at 3:47 pm

He can’t talk right now, he’s in the shitter. He shit’s his pants. He’s suffering from Fruit – Hittin’ – The – Loom. Ask him how he handles crappin’ his pands, he’ll tell you – “depends.”

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Its Serious September 16, 2015 at 4:41 pm

That’s some serious shit.

Rocky The Retard September 16, 2015 at 2:27 pm

You’re so full of shit that flies swarm all around you.

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Rocky The Socialist September 16, 2015 at 2:29 pm

Yes indeed!For more than 100 years, Democrats wailed and cried anytime Republicans accused them of being Socialists. “You are paranoid!”, they shouted.
Today, they finally came out of the closet. Their leading candidate for president is an openly avowed Socialist.

Congratulations. The first step to recovery is admitting your problem…

Reply
Rocky The Retard September 16, 2015 at 2:29 pm

Do you eat shit sandwiches for lunch?

Reply
Rocky The Retard September 16, 2015 at 2:31 pm

You experience in your field is pumping shit out of porta toilets.

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Its Serious September 16, 2015 at 4:43 pm

You know you’ve shit. There’s shit on the toilet paper, but no shit in the bowl. But shit stuck to Rocky’s tail.

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Its Serious September 16, 2015 at 4:44 pm

Second Thought Shit

You’re all done wiping your ass and you’re about to stand up when you realize it…..you’ve got some more.

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Rich Get Richer September 16, 2015 at 12:59 pm

Oh shit, they’re on to us.

Careful, that other group of poor people is making more than you and that’s why you’re poor!

Hahaha, works every time!

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Jack September 16, 2015 at 1:52 pm

I notice this chart looks very bad for Bush 1 and Bush 2. Great for Clinton, everyone else mediocre. Would love to see this on an inflation adjusted basis. Would not change the ups and downs, but would show just how bad the middle class is doing.

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Donald Trump September 16, 2015 at 2:23 pm

Bill Clinton’s a swell guy. Hillary is a swell gal. There’s a reason I agree with them on a lot of issues and have even given them money, after all.

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Bible Thumper September 16, 2015 at 2:26 pm

It looks just as good for Reagan as Clinton,

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Jack September 16, 2015 at 2:40 pm

Uh, no it doesn’t. Reagan was only a little over half the gain under Clinton. I can’t tell the exact numbers but it looks like Reagan started at around $48,462 and ended around $52,000. A gain of about $3700. I looks like Clinton started around $50,500 and ended up around $57,500. again of abut $7,000.00. That is a huge difference.

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Bible Thumper September 16, 2015 at 3:06 pm

It is all demographics anyway The middle of the Baby boom turned 45 years old in 2000. Peak income years.

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Rocky Verdad September 16, 2015 at 3:51 pm

What you just said. Baby boom, huge number of people, peak earning years. Is it possible, just a thought, that there really isnt’ a decline in real wages. It’s just the demographics, smaller population that’s younger, haven’t hit peak earning years?

Bible Thumper September 16, 2015 at 3:55 pm

…as well as larger group of retirees whose incomes are declining from their peak incomes of their 40’s and 50’s.

Rocky Verdad September 16, 2015 at 4:38 pm

Holy SHIT!!!!! We might have figured this CRAP out. What we need now is a data DUMP.

Jack September 17, 2015 at 9:55 am

This makes absolutely no sense. If this were a relevant factor, then the 2000s would have been boom years for the Middle Class. Instead they have been a disaster for the Middle Class. If the peak years of earning began in 2000 median income should have gone up. Instead they went down.

Bible Thumper September 17, 2015 at 11:45 am

No. They should have peaked in 2001, then declined in the 2000’s, just as the chart shows. The first of the baby boomers begin retiring in 2006. Of course, 9/11 had some impact, but still if you smooth out for periodic recessions you can see the general trend.

Bible Thumper September 16, 2015 at 2:40 pm

Two things this chart leaves out is smaller households and more retired households.

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Gee Dah September 16, 2015 at 2:51 pm

Income levels are pretty good inside the Charleston County Public Defenders Office. Joan Driggers who is a paralegal is now paid over $72,000.00 a year. She must be sleeping with Pennington.

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erneba September 16, 2015 at 3:05 pm

Whoa…Silver…I thought the ‘Obama economy’ was the best economic condition in our lifetime.
Shut up, and get back in the bread line.

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Tom September 17, 2015 at 10:18 am

Hey, all that money is trickling back down to the Middle Class even as we speak. Think how bad the economy would be if we had not given all that money to CEOs.

Reply

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