Saturday, September 12, 2009
US Median Incomes 2008 Update
The US Census just released median income estimates for 2008. When broken out by the age of the household head, an interesting pattern emerges. For those households headed by individuals older than 55 years, the last decade was a period of sustained income growth, until the 2007 recession hit. For the rest of American households, the last decade was not so great, the last couple of years have been particularly ugly for the younger baby boomers (45-55 year olds). Given the historic highs in levels of household debt, particularly for mortgage holders, there is now overwhelming evidence that the last decade of 'growth' was a mirage. Consider me still firmly in the bearish camp for household economic well-being.