1.9% Income Growth from 2015 Required to Keep Up in U.S. Economy
Sunday October 30, 2016

 
Based upon last week’s advance estimate of Q3 2016 GDP by the Bureau of Economic Analysis, StayingEven.com’s advance Q3 estimate of the Staying Even Index (SEI) came in at 1.9%, consistent with the previously published SEI reading through Q2. 

 

This reading is significantly higher than the reported 1.1% increase in the consumer price index (CPI) through Q3 compared to the year ago period, demonstrating that wages that increase with inflation/COLA are not sufficient to keep up in the growing U.S. economy.  The 1.9% increase in the Staying Even Index (SEI) is based upon reported YTD Q3 year-over-year nominal GDP growth of 2.7% and population growth of 0.8%. 

 

These projections suggest that individuals whose YTD Q3 2016 total income from all sources grew by more than 1.9% from the same period in 2015 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.   As previously released, SEI growth for calendar year 2015 was 2.9%.

 

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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