The other half of our affordability conundrum is income, because the median income of Americans, after inflation, has been stuck since 2019. In 2024 dollars, the median household income was $83,260 in 2019, and $83,730 in 2024—and prices for food, housing, rent, and electricity have risen faster than overall inflation.  

To more fully grasp the affordability story, consider that incomes have two major components: earnings from work (“labor income”) and income from assets (“capital income”). ..

But here’s another affordability puzzle: Productivity increased 10.4 percent from 2019 to 2024, or about 2.1 percent per year, but incomes stalled. That’s stronger than the 1.7 percent average annual productivity gains in the 1980s, when incomes rose nicely, and nearly as strong as the 2.4 percent average gains in the 1990s, when incomes grew at the fastest rate in decades.  

https://washingtonmonthly.com/2025/12/02/affordability-crisis-trump-maga-policies/

 

The author notes that while wages at all levels increased very little, income from investments soared by nearly 30%. In other words the top 10% got just about 88% of the increased revenues. And most of that came from companies that were part of that 10.4% increase in productivity.

Just now, TedG said:

What has this got to do with the fact that the wealthy have reaped most of the gains from increased productivity?

23 minutes ago, Alan Zweibel said:

The other half of our affordability conundrum is income, because the median income of Americans, after inflation, has been stuck since 2019. In 2024 dollars, the median household income was $83,260 in 2019, and $83,730 in 2024—and prices for food, housing, rent, and electricity have risen faster than overall inflation.  

To more fully grasp the affordability story, consider that incomes have two major components: earnings from work (“labor income”) and income from assets (“capital income”). ..

But here’s another affordability puzzle: Productivity increased 10.4 percent from 2019 to 2024, or about 2.1 percent per year, but incomes stalled. That’s stronger than the 1.7 percent average annual productivity gains in the 1980s, when incomes rose nicely, and nearly as strong as the 2.4 percent average gains in the 1990s, when incomes grew at the fastest rate in decades.  

https://washingtonmonthly.com/2025/12/02/affordability-crisis-trump-maga-policies/

 

The author notes that while wages at all levels increased very little, income from investments soared by nearly 30%. In other words the top 10% got just about 88% of the increased revenues. And most of that came from companies that were part of that 10.4% increase in productivity.

If it's all Trumps fault ...... how come it's happening in every western country.

Is Trump running Australia/Germany/Canada/France?

 

Name one ruler you admire in any country, and show us how he's doing better?

2 minutes ago, BritManToo said:

If it's all Trumps fault ...... how come it's happening in every western country.

Is Trump running Australia/Germany/Canada/France?

 

Name one ruler you admire in any country, and show us how he's doing better?

Is it happening in every country? Out of all the nations with developed economies, the United States ranks at the bottom of income disparity. Although, I guess for billionaires and such, they would say it ranks at the top.

9 minutes ago, Alan Zweibel said:

Is it happening in every country? Out of all the nations with developed economies, the United States ranks at the bottom of income disparity. Although, I guess for billionaires and such, they would say it ranks at the top.

So you can't name one country with a leader doing a better job than Trump?

2 minutes ago, BritManToo said:

If it's all Trumps fault ...... how come it's happening in every western country.

Is Trump running Australia/Germany/Canada/France?

 

Name one ruler you admire in any country, and show us how he's doing better?

A few things.

He ran on the issue.

It's the main reason that he won.

So politically it is his fault.

The tariff trade war (done ILLEGALLY) raises prices for consumers, hitting the poorest the hardest. 100 percent his fault.

Soon the health care costs of 23 million Americans will double or triple and a large portion of those will just need to drop it altogether.

That was what the shutdown was about.

He has done nothing to prevent that.

So when that shock hits it will be 100 percent his fault.

 

Next ...

 

8 minutes ago, Jingthing said:

A few things.

He ran on the issue.

It's the main reason that he won.

So politically it is his fault.

The tariff trade war (done ILLEGALLY) raises prices for consumers, hitting the poorest the hardest. 100 percent his fault.

Soon the health care costs of 23 million Americans will double or triple and a large portion of those will just need to drop it altogether.

That was what the shutdown was about.

He has done nothing to prevent that.

So when that shock hits it will be 100 percent his fault.

 

Next ...

 

And every other country is doing just as badly.

21 minutes ago, BritManToo said:

And every other country is doing just as badly.

 

The tariff trade war (basically a massive REGRESSIVE tax increase) and his failure to extend Obamacare health care subsidies has nothing to do with other countries.

 

13 minutes ago, Alan Zweibel said:

What has this got to do with the fact that the wealthy have reaped most of the gains from increased productivity?

It's cute to see the supporters of the architects (Democrats) of the "affordable crisis" now lamenting the consequences of their votes. Just think about how much better off others would be without the issues created by the people you support.

10 minutes ago, Jingthing said:

Stop lying.

The tariff trade war (basically a massive REGRESSIVE tax increase) and his failure to extend Obamacare health care subsidies has nothing to do with other countries.

 

Stop name calling!

3 minutes ago, Jingthing said:

Stop lying.

The tariff trade war (basically a massive REGRESSIVE tax increase) and his failure to extend Obamacare health care subsidies has nothing to do with other countries.

 

Are you referring to the temporary COVID subsidies that Dems set to expire in three years that only the Dems voted on? 

1 minute ago, BritManToo said:

Stop name calling!

Sorry about your lack of reading comprehension.

6 minutes ago, Jingthing said:

 

Soon the health care costs of 23 million Americans will double or triple and a large portion of those will just

 

The ACA is failure sold on lies from Obama and the Dems. 

 

 

Just now, TedG said:

The ACA is failure sold on lies from Obama and the Dems. 

 

 

Then replace it with something better.

The republicans have had many years and they don't even have a concept of a plan.
You can't just throw 23 million Americans under the bus with no offered solution.

 

1 minute ago, Jingthing said:

Then replace it with something better.

The republicans have had many years and they don't even have a concept of a plan.
You can't just throw 23 million Americans under the bus with no offered solution.

 

Maybe the Dems admit their plan is an epic failure.   

Wages don't necessarily have anything to do with the administrations.  With exception of 'fed minimum wage' laws.   Which nobody should be working at.   Even McD offers almost 2X that.   Not that $15 an hour is a livable wage, but flipping burgers never was meant to be a career choice.

 

True story, I left NWA in 2001, @ ~$23 an hour.  My buddy left NWA in 2020, @ ~$23 an hour 

 

Corporate raider & union in conjunction destroyed the company, till DL bought them, and union sold them out.   I only worked there for 13 years, left on the best contract.  He worked there 35 yrs, and my full pension if I didn't take it early, isn't much less than his.

 

Someone posted elsewhere, wages are good, at union jobs, although <10% of work force is unionized, and trust me, unions are a business for themselves.   All they care about is monthly dues.

 

People are brainwashed, being a salaried employee, work for company 30-40 yrs is the way to go.   Except not, companies don't last that long for a reason, and that's why pension funds are underfunded, along with, they know life expectancy is short.

 

NWA union showed, they only disbursed 11 retirement checks, to retirees in my job classification.  11, and that just about meets my life expectancy, after age 65, which was 66.7 for being born in 1954.  Soc Sec starts at 66.

 

That the govt allows inflation to increase the way it does is criminal.   Having a $38 T deficit, and printing money backed by nothing, not having a balanced budget, borrowing money to give it away shouldn't be allowed.

 

Keep voting in 535 corrupt idiots, and you get what you deserve.  DOGE should have opened a lot of eyes to the corruption, but no, simply criticized.   That's all a bit telling.

 

Som nam na

3 minutes ago, KhunLA said:

Having a $38 T deficit, and printing money backed by nothing, not having a balanced budget, borrowing money to give it away shouldn't be allowed.

This is all caused by tax cuts for billionaires.  LOL

53 minutes ago, BritManToo said:

And every other country is doing just as badly.

 

54 minutes ago, BritManToo said:

And every other country is doing just as badly.

What are you on about? In terms of income equality every developed nation is doing better than the United States. And Trump's tax cuts during his first term and now on the second, combined with the new tariffs are making it worse

21 minutes ago, Mike_Hunt said:

This is all caused by tax cuts for billionaires. 

The top 1% pay way more than their share.  Top tax rate @ 35% now, I think and was 37% when I hit that 1% group a couple years.   Please explain how this is a fair tax code:

 

 

Yet the top 20%, pay about 80% of all income tax.   The bottom 50% of income earners, pay less than 3% income tax.

 

 

48 minutes ago, TedG said:

The ACA is failure sold on lies from Obama and the Dems. 

 

 

It's such a failure that Republicans are scared as sh*t about the electoral consequences of their failure to extend ACA benefits.

1 minute ago, Alan Zweibel said:

 

What are you on about? In terms of income equality every developed nation is doing better than the United States. And Trump's tax cuts during his first term and now on the second, combined with the new tariffs are making it worse

Why does  income equality matter?  

Just now, KhunLA said:

The top 1% pay way more than their share.  Top tax rate @ 35% now, I think and was 37% when I hit that 1% group a couple years.   Please explain how this is a fair tax code:

 

 

Yet the top 20%, pay about 80% of all income tax.   The bottom 50% of income earners, pay less than 3% income tax.

 

 

Yes they do. And that's because their total share of earnings has increased. You know, incoming equality.

1 minute ago, KhunLA said:

The top 1% pay way more than their share.  Top tax rate @ 35% now, I think and was 37% when I hit that 1% group a couple years.   Please explain how this is a fair tax code:

 

 

Yet the top 20%, pay about 80% of all income tax.   The bottom 50% of income earners, pay less than 3% income tax.

 

 

My post was tongue in cheek.  I was just reading some posts on Facebook. 

Just now, Alan Zweibel said:

Yes they do. And that's because their total share of earnings has increased. You know, incoming equality.

And this all due to tax cuts,  I liked my tax cut. 

Just now, Mike_Hunt said:

Why does  income equality matter?  

It matters when not just the poor but even middle income citizens suffer because of the policies that create it.

Just now, Alan Zweibel said:

It matters when not just the poor but even middle income citizens suffer because of the policies that create it.

They suffer because you feel someone does not pay enought in taxes ?

5 minutes ago, Alan Zweibel said:

It's such a failure that Republicans are scared as sh*t about the electoral consequences of their failure to extend ACA benefits.

This is what happens the Dems create another entitlement.  It’s another path to more debt that is passed on the next generation.   The Dems are irresponsible. 

1 minute ago, Alan Zweibel said:

Yes they do. And that's because their total share of earnings has increased. You know, incoming equality.

 

You want more, earn more.   Don't take mine simply because I have more.   A fair tax code, would be 15 or 25% across the board, no deductions, just a flat rate for everyone.

 

THAT'S A FAIR TAX CODE.   Anything else is socialism, and counter productive to job creation, and TBH, why when I got enough, I simply stopped producing income, and stopped paying taxes.  

 

No incentive when I'm taking all the risk, and get hit with now, 35% tax bill, to be given away to those only paying 3%, or worse, given to foreigners in the USA, or via foreign aid, or simply stolen by corrupt politicians & friends.

 

Sooner or later, you run out of other people's money.   As stated elsewhere, I'm a small fry, but there's lots of us.   Wait till the big boys say screw it, why bother any more.   Shut down, stop producing, stop paying taxes.  Then what ...........

 

.........  you raise the debt ceiling and borrow more to steal.   Sooner or later ... tick tock

1 hour ago, Alan Zweibel said:

The other half of our affordability conundrum is income

 

The problem is most people think "environmental issues" are bs. 

 

Maybe global warming is bs. But there are a limited finite number of resources on the planet and environmental pollution is real. 

 

And most human beings have a proclivity for hoarding and buying as much stuff as they can. 

 

So inflation is necessary to counter-act these two opposing things -- the proclivity to constantly upgrade your iPhone is in conflict with finite resources.

 

Western countries have the highest standard of living, but they always seem to need more and are never happy with their lot in life.