A U.S. Census Bureau study reveals shocking statistics about the decline in American prosperity—particularly for the middle class.
According to the report, “income declined for non-Hispanic White households, households maintained by a native-born householder, households in the West and those inside principal cities of metropolitan statistical areas. The 2014 poverty rate increased for two groups: people aged 25 and older with at least a bachelor’s degree and married-couple families.”
Median income declined in 2014, from $54,462 in 2013 to $53,657 in 2014. The 2014 figure is 6.5% lower than 2007. The overall 2014 poverty rate was 2.3 percentage points higher than in 2007.
Interestingly, the real median income of households maintained by a foreign born person increased by 4.3 percent between 2013 and 2014. In contrast, the median income of households maintained by a native-born person declined 2.3 percent. The income of households maintained by a foreign-born person increased 4.3 percent, from $47,561 to $49,592; while the median income of households maintained by a native-born person declined 2.3 percent, from $55,989 to $54,678. The last increase for nonfamily households was in 2009.
The Census Bureau report notes that neither the real median earnings of men ($50,383) and women ($39,621) who worked full time year round has experienced a significant annual increase in median earnings since 2009.
The real median income of nonHispanic White households declined by 1.7 percent between 2013 and 2014, from $61,317 to $60,256. For Black, Asian, and Hispanic-origin households, the 2013-2014 percentage changes in real median household income were not statistically significant Non-Hispanic White and Black households last experienced an annual increase in median income in 2007, and Asian household’s last annual increase was in 1999. Hispanic households experienced an annual increase in 2013.
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Households with the highest median household incomes were in the Northeast ($59,210) and the West. The Northeast region includes Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. The Midwest region includes Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. The South region includes Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia, and the District of Columbia, a state equivalent. The West region includes Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. ($57,688), followed by the Midwest ($54,267) and the South ($49,655).
In 2014, households within metropolitan areas but outside principal cities had the highest median income ($61,600), while households outside metropolitan areas had the lowest ($45,482). Between 2013 and 2014, the real income of households inside principal cities declined 3.5 percent, while the changes in median incomes of households for the remaining three residential categories shown in Table 1 were not statistically significant.
For family households, married-couple households had the highest median income in 2014 ($81,025), followed by households maintained by men with no wife present ($53,684). Those maintained by women with no husband present had the lowest median ($36,151).
The Pew research organization noted earlier this year “the growing percentage of households paying 30 percent (the federal standard for housing affordability) or more of their income on housing illustrates that it is increasingly difficult for many American families to make ends meet.”