U.S. Income

In casual conversations with friends over the years, I've become aware of the fact that many people in my circle are completely ignorant of income distribution in the U.S. This recently came up again when I friend of mine insisted that an income of $200k would be place someone in the 80th percentile (this friend is admittedly an idiot and was literally making up numbers and angrily insisting they were accurate). I tried to steal a bet on it, but he at least sober up quick enough to decline a wager. I told him I'd show him the data when he paid to see it.

Anyway, I'm told the question of how much money you need to make in order to qualify as rich came up last night at Saddleback. I was watching Phelps win his 8th gold medal.

And since my ignorant friend doesn't read this blog, I'm happy to point to Phil Klinker who provides some data from the Census Bureau:

—In 2006, the median household income was $48,201. That means half of all households made less than this amount and half made more.

—For family households, the median was just shy of $60,000. For married couples households, the median was $69,716.

—Households making over $133,000 were in the 90th percentile.Households making over $174,000 were in the 95th percentile. This means that Obama’s line of $150,000 probably hits the top 7-8 percent of household incomes.

—The data on those making above McCain’s line of $5 million dollars aren’t readily available, but those making over $1.6 million are in the top 0.1 percentile (that’s the top one-tenth of one percent). Overall, there are only 146,000 households making over $1.5 million and only 11,000 with incomes over $5.5 million.

Note that 'household' income data and individual income data are not the same thing.