Incomes of median households in US surge in 2015
For the first time since 2007, median households across the board in America registered a significant income surge of 5.2 percent. This was the largest annual gain since annual survey of incomes began to be conducted in 1967. At the current rate of growth, it is anticipated that by 2017, incomes of median households would surpass income levels from nine years ago.
State of the economy
The U.S. economy exited the recession phase nearly seven years ago however the growth and expansion during 2007-2009 was sluggish. Millions of Americans were dissatisfied with largely stagnant or declining incomes. Given the upward income trend witnessed in 2015, median household earnings are now only 1.6 % short of the 2007 numbers shortly before the economy plunged into recession.
Of rising incomes and diminishing poverty
According to the Census Bureau, the number of Americans living in poverty has dropped sharply in recent decades. Economic prosperity trickled down across the board to non-Hispanic white, African-American and Hispanic origin households. Since 2007, this was the first annual increase for non-Hispanic white and African-American families, according to the survey. In 2014-2015, families living in poverty dropped by 3.5 million, a 1.2% drop.
Democrats celebrate reports; Republicans respond cautiously
President Obama and the Democrats hailed the Census results as 'economic unease' is a major criteria amongst voters of both parties. The Clinton Campaign stressed on measures taken to resurrect the economy since the 2008 financial crisis, however it also acknowledged existing problems. Republican nominee Donald Trump didn't respond directly to the Census report but said Republicans would do much more to eliminate poverty.
Further gains on the horizon
Chris Christopher of IHS Global Insight believes incomes will continue to rise through 2017; employment will increase and inflation will be moderate. Poverty levels in America hit a 17-year high in 2010. Since then, trends indicate a steady decline and last year's drop was the sharpest since 1999. Health insurance witnessed expansion; from 89.6% to 91% U.S. residents now have health coverage.
Turning a corner
Due to robust employment growth over last few years, 2.4 million people found full-time employment in 2015. Lower inflation, higher wages and longer hours also complemented the improved scenario. Earnings by women saw larger gains than men, at 2.7%, compared to with 1.5% for men.
