Worldwide Success

According to a recently published Census report, the median household income in America in 2006 was $48,201, which was the highest level in five years.  The median is the center point of the income distribution, meaning, half of the households in America make more than $48,201 per year and half make less.

Median household income in America: $48,201

Although the median income rose less than 0.8% from the previous year, the good news is that, according to the latest report, half a million fewer people were living below the poverty level.  The other good news is that only 9.4% of seniors lived in poverty in 2006, the lowest level ever recorded.

The income distribution varies considerably across the population.  For example, the difference in median income across racial lines is quite significant.  Whites had a median household income of $52,423 while the median household income for Blacks was $31,969.  Hispanics had a slightly higher mean household income than Blacks, at $37,781.  Asians continued to lead with a median household income of $64,238.

From a gender perspective, men's median income was the lowest in a decade, at $42,261.  However, men continue to make more money than women, whose median income was $32,515.

The East Coast leads with the highest median household income in the nation containing four out of the top five states.  The top five richest states and their respective median incomes are:

1. Maryland  - $65,144
2. New Jersey - $64,470
3. Connecticut - $$63,422
4. Hawaii  - $61,160
5. Massachusetts - $59,963

The states with the highest poverty rates are Mississippi, District of Columbia, Louisiana, New Mexico and West Virginia respectively.

As expected, the rich earned a disproportionate amount of the total income earned in the nation.  The top quintile, or the richest 20% of the population, represented by those households that earn more than $97,000 per year, earned about half of the total income.  By contrast, the lowest quintile, or the poorest 20% of the population, with incomes below $20,000, only earned 3.4% of the total income in the nation.

Despite of the unequal distribution, there has been some improvement as income rose for all income groups and poverty declined in all racial and ethnic groups.

The amount of $48,201 per year may not seem like a lot of money for many people.  But if you make more than that, consider yourself lucky.  You are doing better than half of the people in one of the richest countries in the world.

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