Bushonomics: reverse Robin Hood
Average Incomes Fell for Most in 2000-5
By DAVID CAY JOHNSTON
New York Times
Americans earned a smaller average income in 2005 than in 2000, the fifth consecutive year that they had to make ends meet with less money than at the peak of the last economic expansion, new government data shows.
While incomes have been on the rise since 2002, the average income in 2005 was $55,238, still nearly 1 percent less than the $55,714 in 2000, after adjusting for inflation, analysis of new tax statistics show.
The combined income of all Americans in 2005 was slightly larger than it was in 2000, but because more people were dividing up the national income pie, the average remained smaller. Total adjusted gross income in 2005 was $7.43 trillion, up 3.1 percent from 2000 and 5.8 percent from 2004.
Total income listed on tax returns grew every year after World War II, with a single one-year exception, until 2001, making the five-year period of lower average incomes and four years of lower total incomes a new experience for the majority of Americans born since 1945.
The White House said the fact that average incomes were smaller five years after the Internet bubble burst “should not surprise anyone.”
The growth in total incomes was concentrated among those making more than $1 million. The number of such taxpayers grew by more than 26 percent, to 303,817 in 2005, from 239,685 in 2000.
(Continued here.)
By DAVID CAY JOHNSTON
New York Times
Americans earned a smaller average income in 2005 than in 2000, the fifth consecutive year that they had to make ends meet with less money than at the peak of the last economic expansion, new government data shows.
While incomes have been on the rise since 2002, the average income in 2005 was $55,238, still nearly 1 percent less than the $55,714 in 2000, after adjusting for inflation, analysis of new tax statistics show.
The combined income of all Americans in 2005 was slightly larger than it was in 2000, but because more people were dividing up the national income pie, the average remained smaller. Total adjusted gross income in 2005 was $7.43 trillion, up 3.1 percent from 2000 and 5.8 percent from 2004.
Total income listed on tax returns grew every year after World War II, with a single one-year exception, until 2001, making the five-year period of lower average incomes and four years of lower total incomes a new experience for the majority of Americans born since 1945.
The White House said the fact that average incomes were smaller five years after the Internet bubble burst “should not surprise anyone.”
The growth in total incomes was concentrated among those making more than $1 million. The number of such taxpayers grew by more than 26 percent, to 303,817 in 2005, from 239,685 in 2000.
(Continued here.)
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1 Comments:
Lies, damn lies, and statistics.
So, the drop in incomes started in 2000. Bush didn't take office until January 2001 and the first of his policies were not enacted in to law until the summer of 2001 and did not go in to effect until early 2002 due to 9/11. The Clinton recession didn't subside until late 2003.
Therefore, the drop in incomes is directly related to the Clinton Administration policies. Note also the recession actually started in March 2000 during the last year of Clinton's term. Couple that with the fact that Clinton gave away all manufacturing business to China during his 8 years in office and - voila - you have the foundation for retreating incomes!
Bush's problem is that while he correctly cut taxes, he didn't do anything about illegal immigration. This influx of cheap labor has also undermined salaries, but to lay the result of 8 years of Clintonomics at the feet of Bush is disingenuous not to mention completely ingnorant of the policies that preceded the Bush administration.
Lies, damn lies, and statistics!
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