Charts: Income Growth Has Stalled for Most Americans

New Census data confirms what millions of Americans already know: The gap between the rich and the rest is steadily widening.


Yesterday the Census Bureau released its latest income data, confirming what millions of Americans already know: The recession may be over, but the recovery has yet to trickle down. Specifically, the Census reported that median household incomes didn’t budge between 2011 and 2012.

Digging deeper into the new data reveals more evidence of the widening income gap between the rich and the rest. 

The only bright side of stalled incomes is that they are no longer experiencing the steep decline that started in 2007 before the recession hit. But that’s hardly cause for celebration: At $51,017, the real median household income in 2012 is even less than it was at the end of the ’80s, and it’s down 9 percent from its high in 1999.

This loss of real income hasn’t affected all Americans equally. For the top 20 percent of earners, average incomes grew 70 percent since 1967, and they grew 88 percent for the top 5 percent. Meanwhile, middle-income households have seen their earnings grow just 20 percent in the past four decades.     

This translates into a greater share of total income going to top earners. In 2012, the top 20 percent took in more than half of all income in the United States, according to the Census.

To put that into sharper focus, I’ve charted how each percentile’s share of total income has changed since the late ’60s. After experiencing significant growth in the mid-1970s, the bottom 20 percent of earners have seen their share steadily drop. Compare that with the top 5 and 20 percent, which have seen their piece of the pie expand in the past two decades while all other Americans’ shrunk.

This trend is also seen in the latest income data complied by economists Thomas Piketty and Emmanuel Saez, which shows that the top 10 percent of earners now hold their largest share of total income since the eve of the Depression.

The new Census data on the bleak state of the American Dream came one day after Forbes released its latest list of 400 wealthiest Americans. Together, they are worth more than $2 trillion. The past year has been very good to them:

The average net worth of list members is a staggering $5 billion, $800 million more than a year ago and also a record. The minimum net worth needed to make the 400 list was $1.3 billion. The last time it was that high was in 2007 and 2008, before property and stock market values began sliding. Because the bar is so high, 61 American billionaires didn’t make the cut.

As Piketty and Saez report, 95 percent of all income growth between 2009 and 2012 went to the 1 percent.

Sources: Chart 1: Census Bureau, “Income, Poverty, and Health Insurance Coverage in the United States: 2012″ (PDF); charts 2-4: Census Bureau historical income data; chart 5: Emmanuel Saez, UC Berkeley (Excel)

Front page image: rangizzz/Shutterstock

WE'LL BE BLUNT

It is astonishingly hard keeping a newsroom afloat these days, and we need to raise $253,000 in online donations quickly, by October 7.

The short of it: Last year, we had to cut $1 million from our budget so we could have any chance of breaking even by the time our fiscal year ended in June. And despite a huge rally from so many of you leading up to the deadline, we still came up a bit short on the whole. We can’t let that happen again. We have no wiggle room to begin with, and now we have a hole to dig out of.

Readers also told us to just give it to you straight when we need to ask for your support, and seeing how matter-of-factly explaining our inner workings, our challenges and finances, can bring more of you in has been a real silver lining. So our online membership lead, Brian, lays it all out for you in his personal, insider account (that literally puts his skin in the game!) of how urgent things are right now.

The upshot: Being able to rally $253,000 in donations over these next few weeks is vitally important simply because it is the number that keeps us right on track, helping make sure we don't end up with a bigger gap than can be filled again, helping us avoid any significant (and knowable) cash-flow crunches for now. We used to be more nonchalant about coming up short this time of year, thinking we can make it by the time June rolls around. Not anymore.

Because the in-depth journalism on underreported beats and unique perspectives on the daily news you turn to Mother Jones for is only possible because readers fund us. Corporations and powerful people with deep pockets will never sustain the type of journalism we exist to do. The only investors who won’t let independent, investigative journalism down are the people who actually care about its future—you.

And we need readers to show up for us big time—again.

Getting just 10 percent of the people who care enough about our work to be reading this blurb to part with a few bucks would be utterly transformative for us, and that's very much what we need to keep charging hard in this financially uncertain, high-stakes year.

If you can right now, please support the journalism you get from Mother Jones with a donation at whatever amount works for you. And please do it now, before you move on to whatever you're about to do next and think maybe you'll get to it later, because every gift matters and we really need to see a strong response if we're going to raise the $253,000 we need in less than three weeks.

payment methods

WE'LL BE BLUNT

It is astonishingly hard keeping a newsroom afloat these days, and we need to raise $253,000 in online donations quickly, by October 7.

The short of it: Last year, we had to cut $1 million from our budget so we could have any chance of breaking even by the time our fiscal year ended in June. And despite a huge rally from so many of you leading up to the deadline, we still came up a bit short on the whole. We can’t let that happen again. We have no wiggle room to begin with, and now we have a hole to dig out of.

Readers also told us to just give it to you straight when we need to ask for your support, and seeing how matter-of-factly explaining our inner workings, our challenges and finances, can bring more of you in has been a real silver lining. So our online membership lead, Brian, lays it all out for you in his personal, insider account (that literally puts his skin in the game!) of how urgent things are right now.

The upshot: Being able to rally $253,000 in donations over these next few weeks is vitally important simply because it is the number that keeps us right on track, helping make sure we don't end up with a bigger gap than can be filled again, helping us avoid any significant (and knowable) cash-flow crunches for now. We used to be more nonchalant about coming up short this time of year, thinking we can make it by the time June rolls around. Not anymore.

Because the in-depth journalism on underreported beats and unique perspectives on the daily news you turn to Mother Jones for is only possible because readers fund us. Corporations and powerful people with deep pockets will never sustain the type of journalism we exist to do. The only investors who won’t let independent, investigative journalism down are the people who actually care about its future—you.

And we need readers to show up for us big time—again.

Getting just 10 percent of the people who care enough about our work to be reading this blurb to part with a few bucks would be utterly transformative for us, and that's very much what we need to keep charging hard in this financially uncertain, high-stakes year.

If you can right now, please support the journalism you get from Mother Jones with a donation at whatever amount works for you. And please do it now, before you move on to whatever you're about to do next and think maybe you'll get to it later, because every gift matters and we really need to see a strong response if we're going to raise the $253,000 we need in less than three weeks.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate