How much (more) money we're making – February 2019
Bottom Line: In today's third story breaking down the employment report we'll explore real incomes. The average hourly wage for all Americans is currently $27.56 and with an average work week of 34.5 hours the average income is now $49,443. That’s an increase of $144 over just a month ago!
Here are the details:
- Earnings are up +3 cents per hour
- Real incomes have risen by $2,638 year over year
Here’s the most exciting part of this story. Through a combination of 3%+ raises/bonuses and the ability to work slightly longer hours the average American is earning $2,638 more than a year ago. That’s awesome and explains the strength we continue to see in the economy. Here’s the bottom-line increase through those increases:
- 5.6% more income than a year ago
That doesn’t even factor in the average tax savings of greater than $1,780. Once you factor that into the mix here’s the net increase in take home pay year over year...
- 9.4%!
That’s the highest year over year increase I’ve ever seen. No kidding. With consumer spending making up about 70% of the US economy – it's obvious why the economy is great, even if it’s not reflecting in the news reporting day-to-day.
This remains a teachable moment. Think back a year ago. All who suggested we’d be worse off because of the tax cuts were wrong. They’ve been consistently wrong. Those people, those news sources and politicians who attempted to mislead us are not credible sources for information. The specific information I provided to you a year ago about the benefit to you and the likely impact on the economy was spot on – including when I told you we’d see a 7% increase in take home pay and a 3%+ economy (using the JFK and Reagan) tax cuts as models.