Monday, November 21, 2011

Average Income in the USA over a century.

Some is a higher concentration of money pooling at the top few percent.  But some is simply lost economic activity.  If people with the ability to buy new cars drops from 2.5 million to 2.0 million, production falls by 20% to match.  That economic activity simply does not happen.  Its not that the missing amount goes to some rich guys.

We see in the UK a very broad unemployment which is more economic activity not happening.  And in addition many people in jobs like sales roles(like estate agents) doing very little volume.  So effectively marginally employed.

Ok I found one graph this is for the USA.  Unfortunately this is average income, not median.  But we see even on the average income which includes the top few percent, a general flatlining.



You see on the graph from 1910-1940 the average income simply stayed the same(even through the 'roaring 20s', despite the introduction of radical technologies to improve productivity.
Then from 1940-1970 the big rise from 15,000$ a year to 40,000$ a year.  Then from 1970-2010 it went from 40,000k all the way to maybe 45,000k.

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