Sunday, October 23, 2011

Today's Denver Post - Colorado Incomes Fall

If you got today's Denver Post, you might take a few minutes and read this front-page story. Lots of discussion about median income, as well as the effect inflation has on purchasing power.
Median household incomes in the U.S. last year were at 1996 levels after adjusting for inflation, according to the U.S. Census Bureau.
This is an important point when trying to decipher numbers that people throw at you to try to convince you of things. If you just look at the raw numbers, it would look like people are making a lot more money than they were in 1996. But, due to inflation, the "more" money they are making now actually buys the same amount as the "less" money they were making in 1996.

You have to be numerate to be an effective citizen.

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