Median Household Income Growth: Deflating the American Dream

From dshort.com - Advisor Perspectives
September 19, 2013 - 12:58pm

Sep 19, 2013 Doug Short  What is the single best indicator of the American Dream? Many would point to household income growth. My study of the Census Bureau’s data shows a 600.7\% growth in median household incomes from 1967 through 2012. The ride has been bumpy, but it equates to a 4.5\% annualized growth rate. Sounds impressive, but if you adjust for inflation using the Census Bureau’s method, that nominal 614.2\% total growth shrinks to 18.8\%, a "real" annualized growth rate of 0.39\%.But if we a bit dig deeper into the method of inflation adjustment, the American Dream looks more like an illusion.More...


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