It’s not just what you earn that matters, it’s what you get to keep.
The Congressional Budget Office has just released some great charts on what’s been happening to American living standards over the past four decades. And based on what the Twitterverse frequently informs me about the US economy, some priors may need to be updated. I mean, are Americans really no better off than they were during the late 1970s? I hear that stated quite frequently. But this chart of real income growth tells a different story. Please note that all the lines have been headed higher. Also note the 79 percent gain for the bottom 20 percent in post-transfer/tax income: