Census: Income fell sharply last year - USATODAY.com: WASHINGTON — Americans' household income last year took the sharpest drop since the government began keeping records in 1947, the Census Bureau reported Thursday.
Median household income sank 3.6% to $50,303, after adjusting for inflation, during the first full year of the recession.
Income tumbled to its lowest dollar level since 1997 — a decade's worth of gains wiped out in one year — and things will get worse before they get better, says Sheldon Danziger of the Population Studies Center at the University of Michigan.
"2009 is going to be dreadful," he says. He predicts income will drop at least 5% this year because of rising unemployment in the recession's second year.
The Census Bureau's annual report on income and poverty is one of the most important benchmarks of the U.S. economy.
The income and poverty data reflect the sweeping effects of the recession, which began in December 2007 and has erased 6.9 million jobs. The report covers a wide range of pre-tax income, such as wages, Social Security payments and dividends. It doesn't count the value of non-cash benefits, such as food stamps or employee health insurance.
