[NukeMan]

And then we have this table of median family income (that is median, not mean, which means that half are above the number, and half below), in real dollars, and that is with the CPI overstating what is the real inflation rate. Do facts matter at all anymore?

Thanks for posting this; it is informative. I did notice that it was computed in constant (2001) dollars which helps for a meaningful comparison. I do have some questions though: (1) In 1967 did most households have one wage-earner, progressing to multiple wage earners in later years? (2) How many hours are worked in a typical year by each wage earner?

I don't know the answers beforehand, only pointing out that it is plausible that the rise in household income is simply due to more people working more hours, not due to productivity gains per se. On the other hand, most any product you might name (autos, computers, health care) has vastly increased in quality during that same period, making a meaningful comparison difficult.

[Torie]

Your questions are all excellent and intelligent and pertinent, and thus you set me off on a hour research project to get the poop. Few posters generate such activity in me, so kudos.

It appears that between 1970 and 2000 the median per capita income of men was stagnant (again using that inflated CPI number), while for woman it close to doubled. So that suggests that woman have become more productive and are working longer. However, the percentage of over 20 adults working full time of the total work force only increased by from about 57% to 63%. So it appears that the main change on a median basis is that woman working full time are making a lot more for each hour that they work. That is hardly surprising. There are all those female lawyers and doctors out there now. It should also be noted that the average household size has decreased since 1970 from about 3 per household to 2.5. So there is more median household income to go around per person.

Overall, I suspect these factors are a wash, and families at the median correcting for woman working longer hours (I don't think men are), on a per household member basis are about 50% better off than they were 30 years ago, as I said before after reverting to a more accurate CPI figure as a deflator.

Of course, the big, big change is that the top third earners are massively better off. and the bottom third only marginally better off. That is why I insisted on using median numbers. Using mean numbers would give an excessively rosy picture as to the economic status over time of the average American.

I hope that helps.