U.S. incomes plummeted again in 2009, with total income down 15.2 percent in real terms since 2007, new tax data showed on Wednesday.For the bottom 90% there has already been a "lost decade". In fact there is a lost 3 decades as wages have stagnated. Meanwhile the rich get richer despite the ups-and-downs of bubbles and bursting bubbles.
The data showed an alarming drop in the number of taxpayers reporting any earnings from a job -- down by nearly 4.2 million from 2007 -- meaning every 33rd household that had work in 2007 had no work in 2009.
Average income in 2009 fell to $54,283, down $3,516, or 6.1 percent in real terms compared with 2008, the first Internal Revenue Service analysis of 2009 tax returns showed. Compared with 2007, average income was down $8,588 or 13.7 percent.
Average income in 2009 was at its lowest level since 1997 when it was $54,265 in 2009 dollars, just $18 less than in 2009. The data come from annual Statistics of Income tables that were updated Wednesday.
Saturday, August 6, 2011
Quantifying the Economic Mess
Here is a bit from an article in Reuters by David Kay Johnston: