Average Income in the United States (1913-2006)

by Catherine Mulbrandon on May 4, 2008

I have updated my most popular graph Average Income in the United States. It now includes data through 2006 (in 2006$). I also added recessions from National Bureau of Economic Research

{Click on the image to take a closer look}
Average Income 1913-2006 magnifying glass

Data from Emmanuel Saez’s web site

[tags]Average Income, United States, Recessions[/tags]

Tagged as: Area Graph, Income - Average, Median, Income - Growth, NBER, Pitketty & Saez, Recessions, United States

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  • http://pulse.yahoo.com/_CGAC7MJPWQKYMZYGYEOARQIAEE Latoya McGuire

    Sandy, indeed, the average is distorted by “investors” and the “super-rich” more generally. The average income is simply the total income in the US divided by the number of earners (tax units) in the US. That number is distorted because a huge percentage of income is at one end of the scale. What you’re looking for is the 50th percentile: the *median*: the number at which 50% of the population makes more, and 50% make less.

  • http://pulse.yahoo.com/_GEA74WFOO6EUGPGOQWLX36Q2HU bglorfboz

    The point of this graph, I think–for all you people arguing over the income part of it–is to show the relationship between income peaks and recessions. Sharp climbs are always followed by a slight tapering off correction, and then BAM– a recession. It shows the boom-and-bust bubble cycle of our economy and how it is related to sharp increases in income that define the bubble.

  • Anonymous

    Average (mean), in 2006 dollars. That means it will be pulled up by the value of dollar being worth more before that date, and by the super rich being included.  Both of these will play a part in the inflated number.

  • Anonymous

    I think a lot of people are doing worse than their parents despite their higher income. Most of my generation want what it took our parents had, and took decades to earn, the moment they graduate college (with excessive debt).  They want the nice car and a home to own.  The problem is, they get it, because debt isn’t shameful any more.  It’s now “cool” to use “other people’s money” (OPM) to build their life. Problem is when the house gets foreclosed on and the car repo-ed, the American dream becomes a nightmare.

  • http://pulse.yahoo.com/_S4XUJS2QZCJMYJYY6UER5JMXI4 Fearless Leader

    Sandy, these numbers are adjusted to 2006 Dollars. The Average US Yearly Income of any US citizen was not $15,000 in 1915 (you’d be rich beyond your dreams in that day and age). The graph is showing you the increase in earnings the average worker has received in a given year compared to 2006 wage earners adjusted for inflation.

    Also, Thanks for posting the info for 1974, that’s actually the type of data I am searching for right now!!!

  • http://www.facebook.com/profile.php?id=509871331 John C. Randolph

    I don’t know about the rest of you, but I find that referring to people as “tax units” is really offensive.

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