Picture License: “Tony Fischer Photography”
BusinessDaily.eu – Below we will look at a table, where American households have been divided into 5 equally large groups, with the mean household income for each group, starting with the lowest 20%, then the next 20%, up to the highest fifth of Americans from 2000 to 2011.
Start by looking at they yellow numbers for each of these 5 groups, then look at the last numbers in year 2011, and you will see that all US households earn less in 2011. To give a better picture of the situation, I have colored all years with rising income with green colour, and all years with decline in mean household income with red colour. To sum up, the lowest 20% of US households had a mean income of 13.266 USD in year 2000, but this had fallen to 11.239 USD in 2011. The top 20% of households earned 185.810 USD in 2000, but this had fallen to 178.020 USD in 2011.
The overall conclusion is? All 5 groups of American households are worse off in 2011, than they were in year 2000, when we take inflation into account.
This allows us to conclude that in 2011, the lowest fifth of US households had lost 15% of their income (100-85=15), second fifth had lost 12% of their income, the third fifth had lost 10%, the fourth fifth had lost 7%, while the top 20% had lost only 4% of their income since year 2000.
Conclusion? American households with the lowest income have seen the bigger relative decline in income compared to the top earners.
This may not come as a surprise now, but from above, we can see that the top 20% of US households with the largest income earned 49,8% of total income in year 2000, but in 2011 this had increased to 51,1%, while the lowest 20% has seen its share of income fall from 3,56% in 2000 to 3,23% in 2011.
Conclusion? The top 20% had seen its share of income go up, the fourth fifth earns the same share, while the lowest 60% of American households earned much less of the total American income in 2011 compared to year 2000.
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