Average Income in the United States Will Continue to Drop in 2009

Median household income in the United States has been in a freefall over the past few years due to the “Great Recession”. In inflation adjusted dollars, the last time that the median household income in the United States was $50,303 or lower was 1997. This is a staggering drop that has completely erased all of the gains made in the beginning and middle stages of the decade.

2009 should be even worse, as many are expecting that median household income in the United States could drop as much as 5%. This would leave us with a median household income number of about $47,800. This would be the lowest such number, in inflation adjusted dollars, since 1995.