USA’s lost decade

Economics, Politics, USA

BusinessDaily.eu – By Mikkel Roland Egesberg – In this article we will look at the US household income in the period from 2000 to 2010. More specific we will divide the US households into 5 equal groups (Quintiles) from the lowest household income to the highest, and look at the mean income for these five groups. The numbers have been adjusted by the Consumer Price index (CPI), so they show the real income (no inflation):


(source: Census.gov)

The figure starts by showing the 2000 mean income values for these 5 equal groups. The poorest households (lowest 0-20%) earned 12.860 US dollars (USD), while the richest household group (highest 80-100%) earned an average of 180.129 USD. Now the year 2000 column shows index 100, and the columns from 2001 to 2010 shows how the index has evolved. A red cell colour indicates decline in the mean household income for that group in the specific year, while a green cell indicates increasing income.

If we look at the index in the end, 2010, we can see that all household groups have an index less than 100, meaning they have all lost income since the year 2000 (2000= index 100). An index value of 85,8 for the poorest households indicates that this group has lost 14,2% of their income, from the 12.860 US dollars earned in year 2000 to only 11.034 USD in 2010, the biggest loss for all 5 groups. In short a “lost decade” for the US households, when it comes to real income….

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