Household Income Growth
From 1979 to 2019, which of the following groups of households had the lowest rate of growth in their inflation-adjusted income?
Correct Answer
From 1979 to 2019, the inflation-adjusted average income of households in the top 20% of income in the United States rose by 115%. In comparison, the income of the lowest 20% rose by 82%, and the income of the middle 20% rose by 41%. These figures include nearly all sources of income, such as wages, salaries, capital gains, rental income, and government and employer-provided benefits like food stamps and health insurance. Comparisons of income groups over time often do not represent the experiences of specific people because people typically move through life stages in which their income varies significantly, causing them to move in and out of different income groups. Many factors help and hinder income growth, but some of the primary ones are productivity, work hours, government benefits, and regulations.