Average American Family Income DeclinesLoosely defined, "net worth" is the value of your assets: house, car, investments, and so on, after subtracting your indebtedness. I haven't seen the numbers underlying this study yet, but I can almost bet you that debt has far and away outstripped both income growth and the miniscule increase in net worth for the average American household. Most of that $93,000 is tied up in housing, I'm sure, and I'm also sure that net worth will plummet over the next five years.
By MARTIN CRUTSINGER, AP Economics Writer
Thu Feb 23, 9:57 AM ET
WASHINGTON - The average income of American families, after adjusting for inflation, declined by 2.3 percent in 2004 compared to 2001 while their net worth rose but at a slower pace.
The Federal Reserve reported Thursday that the drop in inflation-adjusted incomes left the average family income at $70,700 in 2004. The median, or point where half the families earned more and half less, did rise slightly in 2004 after adjusting for inflation to $43,200, up 1.6 percent from the 2001 level.
The median, or midpoint for net worth rose by 1.5 percent to $93,100 from 2001 to 2004. That growth was far below the 10.3 percent gain in median net worth from 1998 to 2001, a period when the stock market reached record highs before starting to decline in early 2000.
The Fed's results were published in the 2004 Survey of Consumer Finances, a document which provides a comprehensive view of how Americans are faring on such pocketbook issues as incomes and net worth.
Thursday, February 23, 2006
Posted by Carl at 2/23/2006 03:57:00 PM
Are You Better Off Now Than You Were Five Years Ago?