Our Lost Decade

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Today the Census Bureau released its latest income numbers, and they weren’t pretty: median income dropped by nearly $2,000 between 2007 and 2008.  Nor was the long term picture much better: median income in the past decade has dropped from $52,587 in 1999 to $50,303 in 2008.

But there’s more to your earnings than just cash income.  As we’ve all been reminded over and over lately, healthcare costs are skyrocketing, which means that healthcare premiums paid by your employer have risen dramatically during the past decade.  That’s all part of your compensation too.  So if you add in employers’ contributions to healthcare premiums, how do things look then?

Answer: a little better, but still nothing to write home about.  Roughly speaking, if you add together both cash income and healthcare premiums and adjust everything for inflation, median income over the past decade has increased from about $56,400 to $57,000.  In other words, a whopping 1%.  It really has been a lost decade1.

1Though not for everyone.  During the same period, the average income of the richest tenth of a percent increased by about $2 million, or about 35%.  No wonder there wasn’t much left for the rest of us.

NOTE FOR NERDS: There’s no bulletproof source for the value of healthcare premiums over time, and in any case the value differs depending on whether you’re married, single, have kids, etc.  So here’s what I did to get a rough cut on the data.

Basic cash income table is here.  Healthcare premium estimates for the past decade are here.  I subtracted the employee contribution and then took the average of family and single coverage.  This may understate the cost a bit, but not by much.  Then I applied the GDP deflator to put all the healthcare costs in 2008 dollars.  This is strictly a cheap and cheerful bloggy estimate, but it’s probably not too far off the mark.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

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Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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