The U.S. economy is booming, right?
Republicans think President Trump deserves much of the credit for cutting business and individual tax rates combined with a deregulation agenda. And Democrats believe former President Obama deserves ownership for America’s recovery. Regardless of who gets credit, HowMuch.net’s newest visualization of net compensation levels for American workers demonstrates that the economy is indeed delivering, but not for as many people as the headlines would have you believe…
The Social Security Administration (SSA) tracks net income numbers after taxes through the Average Wage Index (AWI). We broke the AWI into a three-part hierarchy of $5K increments, letting you easily see the reality of income inequality in the U.S.. Astonishingly, 13% of workers make less than $5K, and nearly half, or 48%, take home $31,561 or less in net compensation (the dark red on our visual). If your mind isn’t spinning yet, consider the fact that these numbers are all after a multi-year economic recovery. The U.S. is allegedly at or near full employment but wages are barely growing, meaning these numbers are probably the best case scenario. Imagine what a recession would do to worker paychecks.