For a consumption based economy asking “how much do Americans earn?” is a vital key to our long-term stability. Each household has a propensity to spend and the ability to consume is largely derived by income. Debt has made it easier for households to spend future wages but these two important reference points measure the health of total wages for households and that of individual workers.
The above edited excerpts (and those paraphrased below) come from a post* on mybudget360.com under the original title How much do Americans earn in 2015? A comprehensive look at household income and individual earnings. GDP disconnects from household income.
While there isn’t one universal place to find the typical earnings for Americans at a very micro level, the three most readily available sources are U.S. Census data, Social Security data and IRS tax return information and THIS is what the data has to say:
- According to the US Census data which provides the most comprehensive look at U.S. household income data the median household income in the U.S. is $52,250.
- Social Security data captures all individual workers that pay into Social Security – which is the majority of the population and according to said data, the median net wage for a working individual in the U.S. is $28,031.
- Given that the typical household income is around $52,000, and
- most households need two workers to make ends meet,
- that number makes sense.
- According to IRS tax data, the middle point for tax returns is $34,823 which makes sense given that:
- there are many single households out there as well and
- with AGI, you are looking at lower figures thanks to deductions and adjustments.
- 67.8% of households make $70,492 in taxable income a year or less.
- 5% of households make $167,728 a year or more.
- 1% of households have a household income of $388,905 or more.
The above should give you a good overview of what the typical American household and individual earns.
Related Articles from the munKNEE vault:
How much does the typical American family make? This question is probably one of the most central in figuring out how we can go about fixing our current economic malaise. In this article we break down the U.S. household income numbers. Words: 464
Visit wsj.com – HERE – to find their calculator which shows where your household income stands compared to others in the U.S.. $506,000 puts you in the top 1%; the much talked about $250,00 in the top 6%; $200,000 in the top 10% while an annual salary of $43,000 puts you in the top/bottom 50%. Where do you stand?