It is argued by several conservative leaders that the United States has had a period of economic growth and prosperity since 2000.
Look at the last 12 years of compiled data, 1993-2005. According to the Census Bureau median income rose from $31,241 in 1993 to $46,326 in 2005. An increase of $15,085. Ignoring all other information one would assume that a majority of Amerikans had an increase in income of $1257 each year.
Looks like an economic boom to me!
But the reality is different. Investopedia.com defines inflation as the "rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling."
Inflation is important to understand because the above figures do not consider inflation.
Allow me to present the median income for the last 12 years of compiled data, 1993-2005, adjusted for inflation. Median rose from $41,562 in 1993 to $46,326 in 2005. An increase of $4764 over the 12 year period or $397 more each year.
Now look at the figures of median income since 2000, when the Republican party seized control of the government. In 2000 median income was $41,990, in 2005 it was $46,326. An increase of $4336 over the 5 year period or $867 each year. I would say it is a modest increase but still an increase.
Adjust for inflation and it doesn't improve. Inflation adjusted median income in 2000 was $47,599. In 2005 that decreased to $46,326. A decrease of $1273. That means that from 2000 to 2005 families earned $255 less than they did the previous year.
That is horrible! Lou Dobbs claims that the current government is waging a war on the middle class and as much as I think Dobbs is pushing his own agenda he is right. Current economic policy has been adverse to the general Amerikan population but has benefited the most wealthy.
Things do need to change or else the balloon will pop and things will really suck.