Average American household makes $50k/yr.
Adam Rifkin stashed this in America!
Because our economy depends on consumption, our economy cannot grow until an average American can spend more.
Wealthy people don't spend enough to drive the economy.
Average people spend everything they have AND usually go into debt.
Not quite correct. $50K isn't what the average American makes. It's the median *household* income.
Thanks Jeffrey; corrected. This struck me:
There were 46.2 million Americans in poverty in 2011, as median household income decreased 1.5% to $50,054 in 2011, and a measure of income inequality increased on an annual basis for the first time since 1993.
What is the definition of poverty in America these days?
It's a lot lower than the $50k median household income, right?
To put that another way, the difference between "poverty" and "average" in this country is $28,000 a year.
So 23% of American children live in households that make less than $22k per year.
That's not good.
Yikes! In the Bay Area... $250K a year for a household does feel "middle class" -- if you were married with kids, had a mortgage, and had to pay for the education of your kids... it does not feel "rich."
"Rich" to me means not having to work. $250k a year does not fit that definition.
Regarding $50K as the "average" income... well $50K a year in Pittsburgh, PA is essentially the same standard of living as the family earning $250K a year in San Francisco, CA.
So I see how $22K as the poverty line holds for lower-cost of living regions of the country, but not so much for major cities. I think for San Francisco, the poverty line would be more like $50k a year.
In any case it shows how far off Romney is in understanding what average households are going through.