Widespread Misinformation Follows Household Median Income Report

• 
• 

Published Wednesday, December 31, 1969 at: 2:00 PM EST

Release of the U.S. Census Bureau's annual report on median income received widespread press coverage since its September 12 release, much of it misleading.

Some press reports said it was evidence of rising income inequality. Others said it was just the latest confirmation of two-decades of wage stagnation and a struggling middle-class.

Independent economist Fritz Meyer says household median income is a poor measure of American wealth distribution and economic progress of Americans. His research belies widely-held notions about wealth inequality and wage growth of Americans.

The three lines in this chart represent the percentage distribution of American households across nine income brackets.

Over the last 40 years, the middle-class indeed did grow smaller. However, it was because the proportion of U.S. households in upper income brackets rose strongly.

In 2017, 7.7% of U.S. households were in the highest annual income class — $200,000 and over annually — compared with 1.6% in 1977.

Meanwhile, compared to 1977, when 11.5% of U.S. households fell into the low-income bracket — between $15,000 and $24,999 of income — compared with today when just 9.6% of U.S. households are in that low-income class.

The middle-class — households with between $50,000 and $74,499 of income — is not vanishing. From 22% of U.S. households in 1977, only 17% of American households in 2017 fell into the middle-class. But that's because 7.7% of households were in the $200,000 and over income class.

---

This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial advice without consulting a professional about your personal situation. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. Past performance is not an indicator of your future results.

This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial advice without consulting a professional about your personal situation.

Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. Past performance is not an indicator of your future results.

2021

• Amid Strong Crosscurrents, Stocks Sank 2.5% This Past Week
• A New Rover Landed On Mars And Stocks Closed Lower For The Week
• Ironically, Amazon Profits By Perpetuating Stock Bubble Myth
• Stocks Closed At A New Record High: Can The Party Last?
• Don’t Fall For It
• Housing Boomed Again In December
• The Bad And Good Financial News This Week 
• Stocks Set New High Closing Price Amid Turbulence
• Stocks Gained +16% in 2020; Wall Street Expects +7.6% In 2021

2020

• Holiday-Shortened Week Ends With Stocks Little Changed, Despite D.C. Drama
• The Financial Economic Situation Now
• Bull Market Has Broadened
• Why Did Stocks Close At A Record-High After Disappointing Jobs Report?
• Americans Sit On A Mountain Of Cash Amid Pandemic
• For High-Income Earners And Families, Failing To Plan Is A High-Stakes Gamble
• Stocks Break Record, But Smart Money Is Focused On Taxes
• Wall Street Reacts To D.C With A 7% Weekly Gain
• On Election Eve, Here's The Economic Outlook
• Sizing Up Economic Prospects
• Two Good Economic Surprises
• October Surprise May Be The Economy

• Economic Signs Are Fine Amid The Distractions
• Poverty Rate Dropped Again In 2019; A Sign Of Progress 
• Stocks Dropped Last Week But Data Confirmed Economic Recovery
• Amid A Mixed Week For Stocks, A Strong Recommendation
• Is A Stock Bubble Bursting?
• S&P 500 Breaks Record For A Second Week
• S&P 500 Breaks New Record; Small Business Picture Is Different
• As If Coronavirus Never Hit, Retail Recovers 
• Confirming Recovery Is Under Way
• Despite Grim Headlines, Stocks Rose Sharply -- Why?
• The Paradigm Shift In Valuing Stocks
• Retail Sales And Housing Starts In June Reveal Recovery's Shape

2019

• A Spectacular Year For Stocks
• A Case For A Bull Market In 2020
• Good Economic News Again
• An Unusual Constellation Of Economic Surprises
• Longest U.S. Expansion Keeps Rolling
• Retirement Income Reality Check
• Find The Major Economic Trend Hidden In This Picture
• Is The New Record High In Stocks Irrational?
• Stocks Break New Record; Economic Outlook Clears
• Despite Frights, Can The Expansion Continue?
• Retail Sales Coverage Reflected The Narrow View Of The Media
• Small-Business Optimism Declines But Remains High

• Analysis Of New Employment, Manufacturing & Service Economy Data
• Quarter Ends Well Despite Trade War, Inverted Yield Curve & Political Crisis
• No Recession But A Slower Pace Of Growth
• Fickle Financial Headlines Brighten
• Economy Gets Bad Press Again
• Europe's Growth Problem And Your Portfolio
• Stocks Dropped 2.6% On Friday, As Reality Gap Seemed To Widen
• A Prudent Perspective On Recent Volatility
• A Tale Of Two Economies
• Amid Worries, New Equity Risk Premium Data Explained
• GDP Rose More Than Expected; Stocks Top Record Again
• Slower Growth Confirmed By June Leading Economic Indicators

2018

• 'Twas The Last Trading Day Before Christmas
• Stock Plunge Nears Bear Territory After Fed Hike
• A Last-Minute Reminder To Give Wisely And Charitably
• Key Facts About Tariffs, Interest Rates, And Economic Strength
• Fed Chair Extends A Dovish Hand, Lifting Stocks
• S&P 500 Slid Last Week, As Earnings Growth Is Recalibrated
• Last Chance For Pre-Retired Professionals & Biz Owners
• Amid A Swirl Of Controversy, Fed Policy Remained Stable
• More Good Economic News On Friday
• Is Amazon Keeping The Inflation Rate Low?
• Analyzing The Market Correction
• This Week In Stocks And The Economy

• Analyzing The Risk Of Stocks After The 6.9% Drop
• Fed Chair: "We Remain In Extraordinary Times."
• With The S&P 500 Up 7.2% In 3Q18, What's Driving Stocks?
• Widespread Misinformation Follows Household Median Income Report
• Investment Wisdom At A Poignant Moment In History
• Good Economic Surprises Happening Now
• Economic Facts To Prepare For The Elections
• Another Member Of Music Royalty Dies With No Will
• Top 10 Indications The Economic Outlook Is Brighter Than Expected
• Wealth And Economic News This Week (2-Minute Read)
• 10 Things: New Education Tax Breaks For A Child Or Grandchild
• The Truth About U.S. GDP Growth

2017

• 2017 Ends With S&P 500 Total Return Of 21.8%
• President Signs Historic Tax Cuts And Jobs Act; Stocks Drop A Fraction
• Good News On The Economy And A Tax Alert
• Tax Bill Drives Another Stock Market Record And Gives You To-Dos By Year-End
• An Eventful Week In Wealth Management
• Leading Economic Indicators Surge, Stocks Break Record High Again
• News Affecting Your Wealth Dominated The Headlines This Past Week
• U.S. GDP Growth Surprise Propels Stocks To New Record
• Why Does The S&P 500 Keep Breaking Records?
• U.S. Stocks Nearly Doubled In The Last Five Years
• The Big Economic News The Media Keeps Missing
• Trump Tax Plan Upends Year-End Tax Planning

• Key Senators Agree On A Road To Cutting Taxes This Year
• Year-End Tax Planning Could End With A Thrill This Year
• This Week's News About Wealth Management
• Stocks Dropped For Second Straight Week Amid Strengthening Economic Reports
• With Stocks Near All-Time High, Personal Income And Employment Data Are Released
• How Strategic Asset Allocation And Rebalancing Worked In The 12 Months Ended June 30
• Wall Street's "Top" Strategists' Recommendations Are Like Monkeys Throwing Darts
• Stronger Than Expected Jobs Creation But CNBC Reports "Trouble Lurked"
• S&P 500 Returned 2.9% In 2nd Quarter And 9.2% In First Half Of 2017
• Despite Distractions, Demographics Are Poised To Drive U.S. Long-Term Growth
• The Federal Reserve's Historic Economic Experiment Entered A New Phase
• Despite The Washington Sideshow, Stocks Closed At A New All-Time High

2016

• Visualizing The Risk Of Running Out Of Money In Retirement
• Wall Street's Strategists About As Good As Monkeys Throwing Darts
• Stocks Surge 2% Friday But Why Are They So Volatile Lately?

2015

• Despite A Lackluster Black Friday, Economic Fundamentals Look Good