Washington (Nov. 1, 2002) -- The strong upward movement in real cash median household income during the last half of the 1990s came to an abrupt end in 2000, not 2001, according to Joint Economic Committee Chairman Jim Saxton.

"The facts show that the big turning point in real median family income was 2000, when the progress of the 1990s ended," Saxton said. "The 2000 stagnation reflects the economic slowdown then underway. Unfortunately, some persist in trying to associate the economic trends in place before January 2001, with the changes in personnel and policies that came only later."

The timing of this stagnation closely corresponds to a variety of other data on GDP growth, factory employment, industrial production, stock prices and other measures reflecting a major economic slowdown beginning in 2000.

Even so, he said, "the more complete measure of real median household income including taxes and government benefits showed essentially no change between 2000 and 2001, at $41,533. Since most Americans do pay taxes and/or receive government benefits, this is probably a more relevant measure of well-being for the majority of households."

-- Electronic Accountant Newswire staff

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access