Back to the phenomenal Real Median Household Income report from the US Census Bureau for 2015. If you call, it rose by the most in history, +5.2% from 2014 to 2015. Particularly when the Bureau of Economic Analysis’ Disposable Personal Income (DPI) per household grew by only 2.8% from 2014 to 2015.
Bear in mind that the Census Bureau changed its measure of household income in 2014 to make income growth look better. Starting in 2014, the Census Bureau began to “collect the value of assets that generate income if the respondent is unsure of the income generated.” And the government started to use “income ranges” as a follow-up for “don’t know” or “refused” answers on income-amount questions.
In other words, just guess your household income.
One of the interesting factoids of the 2015 measure of Real Median Household Income is that New York state came out as the biggest winner growing at 6.7% from 2014 to 2015.
While Washington DC area states Maryland and Virginia saw declines, particularly in Virginia (someone better tell Governor Terry McAuliffe!).
New Jersey, the home of numerous Wall Street commuters, rose 4.7% from 2014 to 2015. Connecticut, also the home of number Wall Street commuters and hedge funds, rose 3.8%. Both lower than the national growth rate of 5.2%, and less than New York. And if we look at the stock market and The Fed’s asset purchases, we can see why New York is the big winner in Real Median Household Income derby, brought to you be the Federal Reserve of New York.
You can look up other states at FRED.
We can dispel the notion that it was growth in household size that generated the historic spike in 2015 Real Median Household Income.
Here is permanent voting member on The Fed’s Open Market Committee (FOMC) Bill Dudley. Actually, it is the President of The New York Fed itself, not Dudley. But since he has been on the FOMC since January 2009 (and prior to 2007, a managing director at Goldman Sachs), he might as well be a permanent voting member.
*Thanks to Farragut some valuable input on the Census Bureau!