Growth In Median Family Income Has Decoupled From Economic Growth In The US

This article provides data on the growth in the economy and the growth in median income families. The growth in per capita income and median family income moved in lockstep between the end of WW ll and the mid-1970's. Since then, the growth in per capita income has continued on trend, but median family income has been much flatter. The median family's share of national income has not kept up with growth in the economy. We have had a growing economy since the mid-1970's that has been less equally shared compared to the prior period following the war.

This article should remind us again of the important difference between per capita income, which we typically use as measure of economic growth, and median income. If Bill Gates walked into a bar, the average income of those in the bar with skyrocket. The median income would not change much at all. Average income in the US has grown faster than median income because most of it has gone to folks like Bill Gates.