September 20, 2013
In 1989 a handful of notable movies were released, including:
o Back to the Future Part II
o The Little Mermaid
o Dead Poets Society
o Christmas Vacation
o Road House
Feel old yet? Sometimes it's hard to believe how fast time goes by. Twenty-five years ago we didn't have iPhones, or the World Wide Web for that matter. The Berlin Wall fell in 1989 and Nintendo began selling the Game Boy.
So much has changed, but here's something that hasn't changed much:
Recently the Census Bureau released its updated figures for median household income. The above chart shows the change in middle class wages over the years, adjusted into 2012 dollars. I'm sorry; did I say the change? My mistake, there doesn't seem to be any. Last year the median household income was $51,017 which is roughly the same (it's actually $664 lower) than it was in 1989.
While we've seen many changes and advancements in the last generation, middle class wages have largely remained the same. If you ask ten different people why this is, you'll likely get ten different answers. Those answers may have a strong political bias, blame big business, or perhaps our education system. In any case, this is a thought provoking statistic that's worth some reflection.
Sam DiNorma
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).