By Peter Fedynsky
Washington, DC
31 August 2006
  

 

		Census data collection was partially done door-to-door

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New data compiled by the U.S. Census Bureau indicate that average American household income exceeds $46,000 a year -- an $11,000 increase since 1967.  Poverty levels over the same period have fluctuated, but remain virtually unchanged since 2001.  Currently, 12.6 percent of the population -- about 37 million Americans -- are considered poor.   

David Johnson

On average, men earn more than women in the United States. Asian-Americans earn more than whites, followed by African-Americans and Hispanics.  The wealthiest counties in the United States are in the Washington, D.C area.  The poorest are in Texas along the Mexican border.   

Gary Burtless

"They move to the United States, even if it brings them to a position where they are below the poverty line in the United States. Still, for those families [it] represents a tremendous improvement in their well-being.  It's a huge engine for progress in real incomes of these people."

Despite such improvement, low immigrant wages depress the overall U.S. income average.

Census data also indicate a growing disparity between incomes of Americans at the top and bottom quintiles, or 20 percent, of the population.  David Johnson of the Census Bureau explains. "The income for households in the top quintile represents about half of the total income for the nation, while income for those households at the bottom quintile accounts for only 3.4 percent."

Brookings Institution economist Gary Burtless says the growing wage gap between poor and wealthy Americans can be attributed in part to globalization and the outsourcing of U.S. jobs overseas.  He says this is shifting more of the national income from workers to employers.

"The availability of alternative places to produce things -- both goods and services in other countries, where wages are much lower, benefits are much less costly -- does increase the bargaining power of employers compared with workers," says Burtless.

Politicians in both major U.S. political parties claim the statistics support their economic policies.  Democrats say the census report confirms that most working families are not moving ahead financially.  Republicans say the figures indicate low unemployment, rising wages and more American jobs than ever before.