Who's winning the economic recovery? The richest Americans

Their incomes have fully recovered – and then some.
SEP 16, 2015
By  Bloomberg
U.S. Census Bureau data out Wednesday underscore just how lousy the recovery has been if you aren't rich. Looking at eight groups of household income selected by Census, only those whose incomes are already high to begin with have seen improvement since 2006, the last full year of expansion before the recession. Households at the 95th and 90th percentiles had larger earnings through 2014, the latest year for which data are available. Income for all others was below 2006 levels, indicating they're still clawing their way out of the hole caused by the deepest recession in the post-World War II era. "Each decade, it's taken longer for the poor to recover from recession, for the poverty rate to start turning around after the official end of the recession," said Arloc Sherman, a senior fellow at the Center on Budget and Policy Priorities in Washington. "There's quite a bit of work left to do." Median household income is 6.5% lower than in 2007, the year the recession started. Overall, median income was $53,657 in 2014, not a statistically significant difference on an inflation-adjusted basis from 2013's median of $54,462. It's the third straight year that there's been no significant change, after two consecutive years of annual declines. That's happened even though the labor market has posted steady progress. The number of men working full time and year-round in 2014 increased by 1.2 million from a year earlier while the number of women gained 1.6 million. The changes in their real median earnings, however, weren't statistically significant. Meanwhile, the official poverty rate was 14.8%, with some 46.7 million people in poverty — both little changed from 2013. The rate is 2.3 percentage points higher than it was in 2007.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave