Average American Family Income Declines
Average incomes after adjusting for inflation actually fell from 2001 to 2004, and the growth in net worth was the weakest in a decade, the Federal Reserve reported Thursday.
Average family incomes, after adjusting for inflation, fell to $70,700 in 2004, a drop of 2.3 percent when compared with 2001. That was the weakest showing since a decline of 11.3 percent from 1989 to 1992, a period that also covered a recession.
The average incomes had soared by 17.3 percent in the 1998-2001 period and 12.3 percent from 1995 to 1998 as the country enjoyed the longest economic expansion in history.
Net worth, the difference between assets and liabilities such as loans, rose by 6.3 percent in the 2001-2004 period to an average of $448,200, after adjusting for inflation. That gain was far below the huge increases of 25.6 percent from 1995 to 1998 and 28.7 percent from 1998 to 2001, increases that were fueled by soaring stock prices.
The 2001-2004 performance was the worst since net worth actually declined by 9.9 percent in the 1989-1992 period.
A quick synopsis - Bushs (I & II) bad, Clinton good.