Median Wealth In The U.S. Falls (As Too Much Goes To The Rich)

 

The following is part of an article from Daniel Orton at Newsweek:

The typical American has suffered a major decline in wealth since the start of the decade, even as the United States has continued to create millionaires at a remarkable pace, according to UBS’ Global Wealth Report 2026.

UBS found that inflation-adjusted median wealth per adult in the U.S. fell significantly between 2020 and 2025, while average wealth per adult increased, underscoring a growing divide between households in the middle and those at the top of the wealth ladder.

The distinction is crucial. Median wealth reflects the assets held by people in the middle of the wealth distribution and is often viewed as a better measure of the financial position of a typical household. Average wealth, by contrast, can be heavily influenced by gains among the wealthiest Americans.

Despite the decline for the median American, the U.S. remains one of the wealthiest countries in the world. UBS estimates average wealth per adult at $696,277, the second-highest level among the markets surveyed. Yet median wealth stands at only $68,998, highlighting the extent to which wealth is concentrated among a relatively small share of households. . . .

For middle-class Americans, the findings suggest that the benefits of rising asset prices have not been evenly distributed. While stock markets and other financial assets have helped boost overall wealth figures, many households have not experienced comparable gains after accounting for inflation. The result is a situation in which the country is becoming wealthier on paper while the financial position of the median American has deteriorated.

The divide is reflected in the report’s measure of wealth inequality. The U.S. recorded a wealth Gini coefficient of 0.77, the sixth-highest among the 56 markets analyzed. The measure, which tracks how concentrated wealth is within a population, indicates that a relatively small share of households holds a disproportionate share of the country’s assets.

UBS also found that the U.S. ranks second in average wealth but only 28th in median wealth, one of the clearest indications in the report that gains have been concentrated among wealthier households.

The Median Income In Each State

 These charts, showing the median income in each state, is from data commons.org.

Median Income Rises - Still Below 2007 Level In 27 States

The chart above, from the Economic Policy Institute, shows the percentage rise in income in each of the 50 states. Here is what David Cooper and Julia Wolfe at EPI had to say about the income rising:

State income data from the American Community Survey (ACS), released today by the Census Bureau, showed that from 2015 to 2016, median household income rose moderately across the country, with all but 7 states and the District of Columbia posting gains in inflation-adjusted household income. The ACS report showed a 2.1 percent increase in inflation-adjusted median household income for the country as a whole—an increase of $1,157 in the annual income of a typical U.S. household. This is similar to, albeit slightly lower than, the 3.2 percent increase in household income that the Census Bureau’s reported earlier this week using data from the Current Population Survey (CPS). The ACS and CPS have different samples and cover a somewhat different timeframe, which can lead to slightly different estimates.

In 2016, median household income ranged from $41,754 in Mississippi (17.5 percent below the median for the country) to $78,945 in Maryland (37.0 percent above the median for the country.)

From 2015 to 2016, the largest percentage gains in household income occurred in Idaho, where the typical household experienced an increase of $2,922 in their annual income—an increase of 6.0 percent. Massachusetts (5.3 percent), Oregon (4.9 percent), North Carolina (4.4 percent), Arkansas (4.3 percent), and New Jersey (4.1 percent) all had increases of 4 percent or more. Twelve other states (Nevada, California, Utah, South Carolina, Washington, Georgia, Rhode Island, Alaska, Maryland, Arizona, Indiana, and Nebraska) experienced income growth that exceeded the national average. Median household income was essentially unchanged over the year, after adjusting for inflation, in 4 states (Hawaii, Oklahoma, Vermont, and Montana), and it declined in 5 states (New Hampshire, Delaware, North Dakota, Wyoming, and Louisiana) and the District of Columbia. The states with the largest percentage declines—North Dakota at 1.1 percent, Wyoming at 1.8 percent, and Louisiana at 2.5 percent—are all states whose economies are heavily dependent upon energy production. Thus, it is likely that these declines are the result of falling energy prices, which slowed economic growth in these states.

While the widespread income gains in 2016 are welcome news, it is clear that we still have more work to do to fully recover from the Great Recession. Median household incomes in most states remained below to their pre-recession levels, after adjusting for inflation. In 2016, there were 27 states in which inflation-adjusted median household income was lower than it was in 2007. Moreover, there are 23 states in which household incomes were still lower in 2016 than they were in 2000—more than 15 years without improvement in living standards for typical households in these places. Policymakers should continue to pursue policies—like raising the minimum wage and expanding the right to overtime—that boost incomes, and the Federal Reserve should keep its foot off the brakes until the recovery reaches working people in every state and every sector of the economy.

Gender Wage Gap Has Narrowed, But Not Nearly Enough

These charts are from the Economic Policy Institute. They show the gender wage gap between men and women in the United States. The top chart shows the wage gap from about 1979 until the present. In 1979, women only made about 62.4 cents for every dollar a man made doing equal work.

That has gotten a little bit better now, with women making 82.7 cents for every dollar a man makes. Part of the decrease in the gap is because women are paid a bit more now, but sadly, part is also because the wages for men have decreased.

The second chart shows that the wage gap exists among all income levels. In fact, it is a little less among the lowest 20% of the population -- mostly because the minimum wage applies equally to men and women.

The other three charts show that the gender wage gap persists among all ages, education levels, and races/ethnicities.

This must be fixed. There is no legitimate reason why women should be paid less than men for equal work. Unfortunately, it won't be fixed as long as the Republicans stay in power in the Congress. They have killed every effort to establish equal pay in the past, and are sure to do it in the future.

On the other hand, the Democrats have tried for years to pass laws to abolish the gender wage gap. And if they are able to control Congress after this election, you can be sure that they, in conjunction with President-to-be Clinton, will fix this inequality.

Median Income Rises -- Still Below The Median For 2007

According to the United States Census Bureau, the median income of Americans rose last year -- from $53,718 in 2014 to $56,516 in 2015. That's good news, but not as good as it should be. That median income is still below what it was before the Bush recession.

It also means that half of the people in this country make less than that median income -- many of them making far less. About 20% of U.S. workers make at or near the minimum wage ($15,080), and by 2025 it is expected that 25% of workers will be making at or near the minimum wage.

And that median income is not spread evenly throughout the different demographic groups. While Whites and Asians are above the general median wage, Blacks and Hispanics are well below it. Also below it are single parents with children, women, those over age 65, and those living in the South.

The bottom chart shows the unequal distribution of income by population quintile. The top 20% make about 51.1% of the nation's income, while the bottom 20% make only 3.1% (and the bottom 40% makes only 11.3%, the bottom 60% makes 25.6%, and the bottom 80% makes only 48.8%). That is an inexcusable and very unfair distribution of the nation's income.

The report also contained a new Gini index -- another way of looking at a nation's inequality, where 0.0 means complete equality and 1.0 means total inequality. The Gini index for the United States is 0.479, which puts us about the middle of the scale -- meaning we are the most unequal developed nation, and more unequal than many developing nations. The Gini index was only 0.001 below the index for 2014 (0.480), which is statistically insignificant -- and shows there has been no real improvement toward income equality.

This distribution of income is not only unfair, it is unsustainable -- and is the reason our economy is just limping alone. In a healthy economy, the income is distributed more evenly, giving the masses more buying power (which increases demand and job creation -- and business profits). If the masses cannot afford anything but necessities (which is becoming more true every day), then a capitalist economy cannot be sustained. And it cannot be fixed by giving more to the rich.

Unfortunately, that's all the Republicans have to offer on the economic front -- more and bigger tax cuts for the rich. They oppose raising the minimum wage, taking tax breaks away that help companies to offshore American jobs, and strengthening unions -- all of which would put more money in the hands of the bottom 80% (the masses that a capitalist economy depends on).

But there is a solution. Hillary Clinton (and the Democrats) want to raise the minimum wage to $12-$15 an hour. That would bring millions out of poverty, increase demand for goods/services (because that new money would be spent). They also want to strengthen unions and take the tax breaks away that companies get for offshoring American jobs. They would also invest in infrastructure, research, and clean energy, which would also boost the economy (and which the GOP opposes).

We can establish a fairer and more robust economy that would benefit all Americans -- but we can't do it as long as the Republicans have veto power. They must be voted out of power in November.

Half Of Americans Worry About Their Financial Situation

This chart was made from a recent Gallup Poll -- done between April 6th and 10th of a random national sample of 1,015 adults, with a 4 point margin of error.

Respondents were asked to rate their own financial situation. It turns out that 50% said their financial situation was either excellent or good -- and that's how Gallup titled their poll. I would have titled it different. While it's nice that the 50% are happy with their financial situation, the real story (real tragedy) is that 49% of Americans rate their financial situation as only fair or poor.

Is that an acceptable situation in the richest country on Earth? NO. It's not even close to being acceptable!

But it is true. Other surveys have shown that while the median income is $45k-$50k a year in this country, that doesn't tell the real economic story of Americans. That figure is skewed upwards by the obscenely rich. The truth is that half of American families live on an income that is 150% of the poverty level or less. In other words, they are only a paycheck or two from dropping down into poverty (if not already there).

It didn't use to be this way in this country. There have always been those who are poor or struggling to stay above the poverty level, but it is ridiculous that half of the people in this country can now be described this way. What caused it? The "trickle-down" economic policies instituted by Republicans in the Reagan administration, and doubled down by them in the Bush II administration.

That policy has weakened labor unions, encouraged the off-shoring of good jobs, stifled wages by encouraging companies to not share rising productivity, and kept the minimum wage at a poverty level. It has tilted the economic playing field to favor the rich, and to punish all other Americans.

This economic policy must be changed so it is fair for all Americans (and not just the rich). But that can't happen until the Republicans are voted out of power. As long as they control either House of Congress, they will block any effort to institute a fairer economic policy.

U.S. Only 27th In Median Income Among Developed Nations

I have written endlessly on this blog about how disastrous the Republican economic policy (trickle-down) has been to this country, its economy and its citizens. This chart, from the Global Wealth Data Book, brings home my point. Among developed nations (and some Arab countries), the United States ranks last in median income (27th out of the richest 27 countries).

This does not mean that 27 nations are richer than the United States. The United States is still the richest country in the world. It's just that most of the wealth and income in the United States is in the hands of the wealthy, while it is more evenly distributed in other countries.

Median income is a sign of the health of a nation's middle class -- and the median income in the United States was once the highest in the world. But trickle-down policies have funneled most new wealth from productivity into the hands of a few rich people, while middle class wages have been stagnant. They are not getting a share of the rising productivity as they once did -- and that has resulted in a shrinking middle class and less buying power (thanks to inflation) for those still in the middle class.

The Republicans want to keep economic policy as it is. They like a policy that favors the rich. But keeping the same failed policy will just propel this country even further down the list in median incomes, and shrink our middle class even more. We should have learned by now that giving more to the rich only fattens their bank accounts -- and does nothing for the rest of America (the 99%).

The Republicans must be voted out of power so the country can return to a saner and fairer economic policy -- one that will benefit everyone, and increase the number of people enjoying a middle class lifestyle. Without a vibrant middle class, this country is going to be in serious trouble -- and that is where the GOP policies are leading us.

Top 1% And Median Incomes Of The 50 States

These two images are from Business Insider. The map at the top shows the minimum income required in each state to put a person in the top 1% of income earners. You can click on the map to get a larger image that's easier to read. The list below it shows the median income of each state (and the District of Columbia). The median income is that point where half of the state's residents earn more, and the other half earns less.

Note that most of the reddest states fall in the bottom half of states in median income. This exposes Republican claims of being better for the economy than Democrats as nothing but a lie. Also note that the Republican "economic miracle" state of Texas ranks just 25th in median income (behind nearly every blue state). Texas has only elected Republican statewide officials in over 20 years.

The rich do very well in Texas, since the state's regressive tax system means they pay a much smaller percentage of their income in taxes. Those making under the median income aren't so lucky, since they pay a huge percentage of their income in taxes. In addition, Texas has both the largest number and largest percentage of minimum wage (or below) workers in the nation.

When are the people in this country going to wake up and realize that Republicans only care about the rich and the corporations -- and all of their economic policies are slanted to favor them.

Median Income Has Still Not Recovered From Recession

I  found the information for the chart above on the CNNMoney website. They were celebrating the fact that median income is finally starting to rise a bit in the United States. I have a different take on this. I find it ridiculous that the median income in this country still has not fully recovered from the recession -- even though the economic pundits tell us that the recession ended five years ago. Note that this is true of all three of the largest racial/ethnic groups in this country.

In the past, it has not taken more than five years for the median income to at least equal the pre-recession level -- and it shouldn't have taken so long this time. The only reason it has taken so long this time is because the Republicans didn't want President Obama to get credit for the recovery from the recession (created by a president of their own party) -- and to prevent that they have obstructed every bill introduced by the president (and Democrats) to right the economy and create jobs.

It is obvious that Wall Street and the giant corporations have recovered nicely from the recession. The stock markets are higher than ever before, and the giant corporations are making record profits. But the folks on Main Street have not fully recovered from the Bush recession -- and the Republicans in Congress don't seem to care. They continue to obstruct any cure to the ailing economy offered.

They do this now because they think they can fool the American people into believing that the slow recovery is the president's fault, and they hope that will help them hang on to control of the House of Representatives in the coming election. But the truth is that it is the GOP that has stymied the recovery from the recession their own policies created -- and the only solution they offer is to give the rich and the corporations more tax cuts.

Don't let the GOP fool you. Vote them out of office in the November election. That is the only way we can return to a sane and fair economic policy, and get the faltering economy moving again.

The United States Minimum Wage Is A Ridiculous Embarrassment

If the minimum wage had kept up with the rate of inflation since 1968, it would currently be between $10 and $11 an hour. Unfortunately our politicians have only sporadically raised that wage, and they have never seriously considered making sure that the wage keeps up with inflation. Because of that, the current minimum wage ($7.25 an hour) will only buy between 60% and 70% of what the minimum wage would purchase back in 1968 (when it was only about $1.60 an hour).

The politicians know this of course, but too many of them (mostly Republicans) don't care. They don't view low-wage workers as their constituency. Their policy (commonly called "trickle-down) is designed only to protect the rich. Fairness and economic justice are not terms to be found in their vocabulary.

Most Americans know the minimum wage is far too low, and a significant majority of them would like to see it raised to at least $9 or $10 an hour. But I wonder how many of them realize just how poorly the United States rates when compared to the rest of the developed world on this issue. The chart above is from Kevin Drum's blog at Mother Jones. It shows the minimum wage of each of those nations as a percentage of that country's median wage (the wage at which half of the country will make more and half will make less).

Note that only two countries have a minimum wage that is a lower percentage of the median wage than the United States percentage. Those countries are the Czech Republic and Estonia, and they only have a slightly lower percentage (36% instead of 38%). The other countries have a minimum wage that is a higher percentage of their median wage (ranging from 42% to 72%).

This is nothing short of embarrassing, and makes the United States look like a nation with a stingy and uncaring government. It wasn't always this way, but it is right now -- and it will stay that way as long as the GOP remains in control of any branch of government.