Chart and statistics of us household incomes from 1967 to 2008, in current and constant dollars, and as indexes for 1967=100. Lowest fifth mean income grew from 8,220 constant us$ in 1967 to 11,656	 in 2008 at an annual average rate of 0.9%. The median income grew from 36,360 in 1967 to 50,30 in 2008 at an annual average rate of  0.8%, and the top 5% mean income grew from 144,421 in 1967 to 294,709 in 2008 at a rate of 1.8%.

US high incomes took off in 1985, starting the irresistible ascent that led to the current chasm between highest and lowest household incomes, leaving the median and the lowest fifth incomes on the ground. In other words, significant income growth has been grabbed by the very highest incomes, and the lower 50% of the households in terms of income did not make much progress. Two stages can be identified.

Household incomes are influenced by a "positive feedback" factor that gives the top 5% the gift of a double reward: a bigger calculation base and a higher growth rate, while lower incomes are given a double jeopardy: a smaller base and a lower rate.

 

Growth of Mean Household Income¹
(USA 1967 - 2008)

Year

Lowest fifth

Median²

Top 5%

Lowest fifth

Median

Top 5%

Lowest fifth

Median

Top 5%

(current US$)(constant³ 2008 US$)(index 1967=100)
19671,6007,07728,1108,22036,360144,421100100100
19681,8067,68028,4618,90137,850140,26610810497
19691,9328,33531,5859,07439,145148,337110108103
19701,9928,68933,2818,88738,763148,473108107103
19712,0928,96534,6388,88838,090147,168108105102
19722,2839,62438,4479,29939,200156,599113108108
19732,53910,47141,5169,79840,407160,208119111111
19742,78311,14743,3559,84639,436153,381120108106
19752,90911,72445,6449,40337,895147,531114104102
19763,15212,69149,7009,63538,794151,923117107105
19773,33513,57954,2779,58439,021155,973117107108
19783,68514,94359,4869,89540,125159,733120110111
19794,00616,42865,9849,93140,725163,574121112113
19804,31017,71069,4849,79240,234157,857119111109
19814,60219,07475,1449,55939,621156,091116109108
19824,79020,17182,6979,37839,490161,900114109112
19835,05320,88587,3599,51639,332164,522116108114
19845,43622,41593,7749,86740,686170,212120112118
19855,61423,618102,3549,89141,610180,325120114125
19865,77424,897111,0249,95342,914191,369121118133
19876,13226,061118,00010,27143,654197,656125120137
19886,46527,225124,21510,47044,089201,159127121139
19896,99428,906138,18510,91445,108215,638133124149
19907,16629,943138,75610,76744,990208,483131124144
19917,22630,126137,53010,48643,715199,568128120138
19927,25630,636144,60810,28543,426204,977125119142
19937,35931,241173,78410,20643,326241,008124119167
19947,71432,264183,04410,47743,821248,612127121172
19958,34534,076188,82811,10345,338251,234135125174
19968,59535,492201,22011,22246,340262,721137127182
19978,83937,005215,43611,34047,477276,402138131191
19989,22338,885222,28311,70149,331281,998142136195
19999,91540,696235,07712,39650,881293,909151140204
200010,15741,990252,40012,43051,386308,878151141214
200110,13642,228260,46412,13050,535311,703148139216
20029,99042,409251,01011,76549,943295,603143137205
20039,99643,318253,23911,52449,939291,946140137202
200410,24444,334263,89611,48449,700295,838140137205
200510,65546,326281,15511,55950,256305,005141138211
200611,35248,201297,40511,92750,641312,457145139216
200711,55150,233287,19111,79851,306293,326144141203
200811,65650,303294,70911,65650,303294,709142138204
Average annual growth rate5.0%4.9%5.9%0.9%0.8%1.8%0.9%0.8%1.8%
¹ Mean household income is obtained by dividing total household income by the total number of households. Income includes wage or salary, self-employment income, interest, dividends, or net rental income, social security, public assistance, retirement and other income such as unemployment compensation, alimony, etc.
² Median income values provided by US Census cover the period 1980-2008. For the period 1967-1979 areppim used mean household income values for third fifth, i.e. 40%-60% interval, from the same source.
³ Adjusted for inflation using the Implicit Price Deflators for GDP.

 

Sources: see US Census Bureau (Mean Household Income Received by Each Fifth and Top 5 Percent; Household by Number of Earners by Median and Mean Income), and BEA - US Bureau of Economic Analysis (Implicit Price Deflators for Gross Domestic Product 1929-2008).

 

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