U.S. Median Household Income Hits New High In September 2018

[Hamartia Antidote]

https://seekingalpha.com/article/4217346-u-s-median-household-income-hits-new-high-september-2018

Median household income in the United States increased to $63,007 in September 2018, a 0.5% increase over Sentier Research's August 2018 estimate of $62,685.

The following chart shows the nominal (red) and inflation-adjusted (blue) trends for median household income in the United States from January 2000 through September 2018. The inflation-adjusted figures are presented in terms of constant September 2018 U.S. dollars.



U.S. median household income continues setting new monthly records in both nominal and inflation-adjusted terms. In the latter case, September 2018 represented the ninth consecutive month of record-setting highs.

The rising trend for incomes in the U.S. is being confirmed by other data sources. The Department of Labor's employment cost index indicates that individual wages and salaries have increased by 3.1% on average in the year ending September 2018, which is the largest year-over-year increase for the last decade. Meanwhile, Sentier Research's median household income has increased by 5.5% over the same period.

Analyst's Notes
Our alternative method for estimating median household income turned in a preliminary figure of $62,678 for September 2018, which is slightly more than 0.5% below Sentier Research's Current Population Survey-based estimate for the month. Our alternate estimate is up by 0.4% from the $62,417 preliminary figure that we previously reported for August 2018.

The BEA's monthly revision of its personal income data affected data from July and August 2018, neither of which were significant.

 

[Akasa]

Seems like somebody kept one of his biggest promises. But of course, doubters will be doubters and naysayers will naysay.

 

[Yongpeng Sun-Tastaufen]

But not enough to keep up with inflation. Per capita income is far lower than household income. Most household both people work these days.

 

[xyxmt]

Seems like somebody kept one of his biggest promises. But of course, doubters will be doubters and naysayers will naysay.

well median is high because CEOs are making 20+ million a year, lifting up median income of minimum wage earner to 63000

 

[Hamartia Antidote]

well median is high because CEOs are making 20+ million a year, lifting up median income of minimum wage earner to 63000

LOL! It's middle not average.

 

[Akasa]

well median is high because CEOs are making 20+ million a year, lifting up median income of minimum wage earner to 63000

That's possible with averages but not medians which is what is listed here.

 

[925boy]

Yes i agree US is so rich....now can we pay our $21T debt off?

 

[Mista]

Real median household income has been stagnating for the past 20 years...

Yes i agree US is so rich....now can we pay our $21T debt off?

Reform your healthcare system, as well as promote healthy lifestyle. Healthcare is one major reason behind US's deficits. It's also the reason why median income have been stagnating for the past 40 years even though worker productivity has been increasing, because healthcare is sucking up all the productivity gains through higher premiums.

Watch from 6:03 to 12:45 to understand how has healthcare affected your income growth and federal deficits.

The US spend 17% of its GDP on healthcare, while the OECD spends an average of 10%. Singapore spends 4%. But despite spending so much on healthcare, the US has lower healthy life expectancy than China. There's just something going massively wrong with your healthcare system.

 

[prashantazazel]

well median is high because CEOs are making 20+ million a year, lifting up median income of minimum wage earner to 63000

That's not how median works.

 

[Hamartia Antidote]

Real median household income has been stagnating for the past 20 years...



Reform your healthcare system, as well as promote healthy lifestyle. Healthcare is one major reason behind US's deficits. It's also the reason why median income have been stagnating for the past 40 years even though worker productivity has been increasing, because healthcare is sucking up all the productivity gains through higher premiums.

Watch from 6:03 to 12:45 to understand how has healthcare affected your income growth and federal deficits.

The US spend 17% of its GDP on healthcare, while the OECD spends an average of 10%. Singapore spends 4%. But despite spending so much on healthcare, the US has lower healthy life expectancy than China. There's just something going massively wrong with your healthcare system.

While I agree that healthcare costs in the US are very high the US does somewhat even it out by making it FREE for low income people - they get to go the BEST hospitals not some crappy clinic. Even people with health insurance are usually dissuaded from going to the best places to cut insurance costs. This is also a reason you hear about people strategically declaring bankruptcy when they have a huge healthcare expense.

This for example is a better deal for low income people than in China where poor people would have to pay.

 

[Mista]

While I agree that healthcare costs in the US are very high the US does somewhat even it out by making it FREE for low income people - they get to go the BEST hospitals not some crappy clinic.

Dude, even with the 'best hospitals' with astronomically high cost the US have a lower healthy life expectancy than China which is facing a pollution problem. You can argue that it's due to unhealthy American lifestyle but the fact is just that.

Even people with health insurance are usually dissuaded from going to the best places to cut insurance costs. This is also a reason you hear about people strategically declaring bankruptcy when they have a huge healthcare expense.

You know it's ridiculous that you can even declare bankruptcy because of healthcare expenses, whether it's strategically or not. Especially when the American government spend almost twice of some countries with free healthcare. There's just something going horribly wrong with your system. You guys need to find a way to reform.

This for example is a better deal for low income people than in China where poor people would have to pay.

Eh, why would you want to compare to China when comparing positives, and not some other developed countries? China is still very much a developing country with funds lacking, and yet they already have a higher healthy life expectancy than the US.

Everyone pays for an inefficient system directly or indirectly in some way, such as higher taxes or a reduction in other benefits like education or infrastructure.

 

[Hamartia Antidote]

Dude, even with the 'best hospitals' with astronomically high cost the US have a lower healthy life expectancy than China which is facing a pollution problem. You can argue that it's due to unhealthy American lifestyle but the fact is just that.



You know it's ridiculous that you can even declare bankruptcy because of healthcare expenses, whether it's strategically or not. Especially when the American government spend almost twice of some countries with free healthcare. There's just something going horribly wrong with your system. You guys need to find a way to reform.



Eh, why would you want to compare to China when comparing positives, and not some other developed countries? China is still very much a developing country with funds lacking, and yet they already have a higher healthy life expectancy than the US.

Everyone pays for an inefficient system directly or indirectly in some way, such as higher taxes or a reduction in other benefits like education or infrastructure.

Keep in mind 40% of the US population was not even born here. It is not exactly straightforward to determine the how and why of things if a large percentage of people here spent their early lives in some other country...especially if it wasn’t developed.

With such a smorgasbord or people with many from countries with low life expectancies it’s amazing we even have a rate as high as we do.

 

[Mista]

Keep in mind 40% of the US population was not even born here. It is not exactly straightforward to determine the how and why of things if a large percentage of people here spent their early lives in some other country...especially if it wasn’t developed.

You mean 120 million Americans weren't born in the US? May I have the source?

 

[Hamartia Antidote]

You mean 120 million Americans weren't born in the US? May I have the source?

Sorry I have the numbers backwards

40million were born outside the US not 40%

https://www.brookings.edu/blog/broo...percentage-of-u-s-population-is-foreign-born/

 

[Nilgiri]

https://seekingalpha.com/article/4217346-u-s-median-household-income-hits-new-high-september-2018

Median household income in the United States increased to $63,007 in September 2018, a 0.5% increase over Sentier Research's August 2018 estimate of $62,685.

The following chart shows the nominal (red) and inflation-adjusted (blue) trends for median household income in the United States from January 2000 through September 2018. The inflation-adjusted figures are presented in terms of constant September 2018 U.S. dollars.



U.S. median household income continues setting new monthly records in both nominal and inflation-adjusted terms. In the latter case, September 2018 represented the ninth consecutive month of record-setting highs.

The rising trend for incomes in the U.S. is being confirmed by other data sources. The Department of Labor's employment cost index indicates that individual wages and salaries have increased by 3.1% on average in the year ending September 2018, which is the largest year-over-year increase for the last decade. Meanwhile, Sentier Research's median household income has increased by 5.5% over the same period.

Analyst's Notes
Our alternative method for estimating median household income turned in a preliminary figure of $62,678 for September 2018, which is slightly more than 0.5% below Sentier Research's Current Population Survey-based estimate for the month. Our alternate estimate is up by 0.4% from the $62,417 preliminary figure that we previously reported for August 2018.

The BEA's monthly revision of its personal income data affected data from July and August 2018, neither of which were significant.

Excellent news. Looks like it will hit around 66,000 at this rate for 2020. It will help Trump re-election effort.

The tax cuts have also increased govt revenue (from the resulting economic growth) already. Spending cuts and federal reserve reform are the two big things that look to be delayed though.