[Alberta's Child]

The use of "family income" as a performance measure for the U.S. economy is one of the most misleading statistical gyrations we see on a regular basis. For the most part, real (i.e., inflation-adjusted) family income has been slowly declining for decades. This is not news.

What most people probably don't know, however, is that the primary factor in this decline is not economic changes, but social changes. "Family income" has been declining primarily because families are getting smaller, and we have more people earning more money than ever before -- but in separate households.

[lucysmom]

What most people probably don't know, however, is that the primary factor in this decline is not economic changes, but social changes. "Family income" has been declining primarily because families are getting smaller, and we have more people earning more money than ever before -- but in separate households.

Not according to the CIA World Factbook:

The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households.

My guess is that if a rising economic tide lifts all boats, the bottom 80% would have seen significant gains along with the top 20%.

[torchthemummy]

Ditto. I had just asked the question the moment I read the article and then as I finally read all the posts...wala...you nailed the same point.

Cool!