A new study finds that the average American household earns less today than it did at the end of the Recession. The study, conducted by Sentier Research, found that, adjusting for inflation, the median annual household income has fallen 4.4 percent since June 2009.
The median income for June 2013 was $52,098, down from $54,478 in June 2009. The median household income before the Recession began in December 2007 was $55,480.
The study looked at unemployment and income data from the monthly Current Population Survey by the Census Bureau. While unemployment rates have fallen, income has not substantially increased. The data shows that nearly every demographic is worse off today than before the Recession, except for 65- to 74-year-olds.
According to the Organisation for Economic Co-operation and Development (OECD), “income inequality increased by more in the first three years of the crisis to the end of 2010 than it had in the previous twelve years.”
The United States is one of the five countries in the world where the gap between the richest 10 percent of the population and the poorest 10 percent is widest. In the US, the top 10 percent had 15.9 times the income of the bottom 10 percent in 2010, according to OECD data released in May.
Last year, Think Progress reported that the salaries of chief executives of US companies increased by 15 percent in 2011 after a 28 percent rise in 2010. According to data from the Economic Policy Institute, since 1978, CEO pay increased by 725 percent – more than 127 times faster than worker pay increased during the same period.