3.0% Income Growth from Year Ago Required to Keep Up in U.S. Economy
Sunday August 30, 2015

 
Based upon Thursday’s U.S. second quarter “second” GDP estimate released by the Bureau of Economic Analysis (BEA), StayingEven.com has estimated the Q2 2015 Staying Even Index (SEI) at 2.9% and the YTD SEI through Q2 at 3.0%.  The SEI measures the year-to-year income growth required for individuals to keep up in the U.S. economy – or to “stay even” with where they were in the prior year period.  The YTD 3.0% growth in the SEI is significantly higher than the reported 0.0% increase in the consumer price index (CPI) compared to the year ago period, demonstrating once again that raises that keep up with reported inflation are not sufficient to stay even in the growing U.S. economy. 

The 2015 3.0% YTD increase in the Staying Even Index (SEI) is based upon reported YTD Q2 year-over-year nominal GDP growth of 3.8% and average population growth of 0.7%.

These estimates suggest that individuals whose YTD Q2 2015 total income from all sources grew by more than 3.0% from the same period in 2014 expanded their adjusted share of the U.S. economy, and those whose total income grew by less than this fell behind compared to the prior year. 

StayingEven.com will publish updates to these figures as GDP and population estimates are revised over the coming months and as future quarter GDP estimates are released. We are dedicated to helping individuals understand what income growth is required to keep up in the U.S. Economy. 

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