Incomes fall for all but wealthiest Americans

WASHINGTON - Fifty percent of U.S. workers earned less than $26,364 last year, and those earning less than $200,000 per year - roughly 99 percent of Americans - saw their earnings fall a collective $4.5 billion.

There were fewer jobs, and overall pay was trending down -- except for the nation's wealthiest, who saw a boost.

While the incomes of the top 1percent of the country rose slightly in 2010 (from $1,909,874 in 2009 to $2,196,124 last year), their collective wage earnings rose dramatically, by about $120 billion.

MoneyWatch: How much better are the super-rich doing than the 99 percent?

Those earning at least $1 million a year (93,725 of Americans) reported payroll income totaling $224 billion - a rise of 22 percent above 2009.

The statistics from the Social Security Administration, citing payroll data based on W-2 forms submitted by employers to the Internal Revenue Service, reflect a growing income gap between the nation's rich and poor, the government reported Thursday.

Wage statistics for 2010 (SSA.gov)

Despite population growth, the number of Americans with jobs fell again last year, with total employment of just under 150.4 million -- down from 150.9 million in 2009 and 155.4 million in 2008.

In all, there were 5.2 million fewer jobs than in 2007, when the deep recession began, according to the IRS data.

The figures are just one more indication of the toll that the worst downturn since the Great Depression has taken on the U.S. economy.

They were published as demonstrations rage on Wall Street and in cities across the nation protesting a widening income gulf between average wage earners and the nation's wealthiest.

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"Occupy" protests enter their 4th week

The unemployment rate remains stuck at 9.1 percent, with more than 14 million out of work and 11 million other discouraged people who have stopped looking for work or are stuck in part-time jobs. Since 1980, roughly 5 percent of annual national income has shifted from the middle class to the nation's richest households, according to the Census Bureau.

While the average U.S income last year was $39,959, the mean income -- the figure where half earn more and half earn less -- was much lower, $26,364. This disparity reflects the fact that "the distribution of workers by wage level is highly skewed," according to Social Security.

Median compensation last year was just 66 percent of the average income, compared with nearly 72 percent in 1980.

[docdiogenes]

the top 1% WAGE earners are NOT the wealthiest 1%. If you are dependant on a WAGE you can rest assured that you aren't in the top 2% of wealthiest americans.

7 million americans are classified by investment firms as 'high wealth individuals' on the basis of having more than $1 mil in INVESTMENT dollars. These 7 million people - the top 2.2% - have a combined wealth of 32 trillion.

If a person works a 200k/per year job for 40 years, with a 5% annual increase, their LIFETIME WAGE EARNINGS would be 25 million.

Charles Koch [Koch Industries] spends more than $25 million on a single campaign donation, and far far more on "Reality Manufacturing" - Koch has spent over $100 million to control what we think, to bring down Obama so he can destroy the enviroment.

Why? Koch brothers father, Fred, invented the means to convert oil to gas. The wealthy could resolve the country's financial problems in a wave of the hand, and it wouldn't change a thing, because billionaire Koch brothers spent a vast forture to see to it that that we are miserable right now - and to see to it that the 99% WAGE earners rise against the top 1% wage earners - none of whom control wealth or politics. the top 1% WAGE earners are just the higher paid slaves of the billionaire club. [1210 billionaires have a combined wealth of 2.3 trillion. the top 400 of those - the Forbes 400 - have a combined wealth of 1.5 trillion.]

i guess the joke is on the wage earner, huh?

[hsinco-2009]

Am I supposed to be surprised about this info?

When Repugs are involved, the middle class suffers!

[californiadreaming1]

Well, this is how these numbers get so skewed. I am one of the 1% (technically over 200K a year), but nowhere near the $2,196,124 that the article states as being "super rich". So yes, my income is high, but it is not anywhere near Mercedes a year territory, or even anything but a used car. Taxes are high (42% Fed and State income tax last year), and there are no loopholes. People need to get their story straight as to who they wish to hate. Yeah, I'm luckier than most - but not rolling in it for sure!

[Manslick]

I am by no means wealthy...far below the cited earners of $200,000 (and less) per year who were supposed to have lost income. While I know for certain that some have lost income, some even their jobs unfortunately, I do not believe the propaganda here.

Do you really believe the people who put these numbers together have such a firm grasp on income earned, income lost, taxes paid and population numbers that accuracy is not to be doubted? If you do believe it, push to get these people in responsible positions of leadership to take care of the country's finances! They would know how to straighten out the taxes, deficit and debt. They could be your financial salvation!

I don't believe they are at that level.

[californiadreaming1]

The problem is, that as a country, we tend to listen to statistics more than we really should. That's why so many people die needlessly because of medical mistakes, and we tend to listen to anything with a number attached as if it were the truth. Numbers mean nothing - and they are easily played with to make your point. We live in the "Google age" - with lots of mis-information at our fingertips. Time to be free-thinkers again instead of believing everything we see on our screens!

[bantamei]

Welcome to republican America; their economic policies are working.

[ursamoonstone]

Latest wage stats are out, Senate won't even talk about the jobs bill, all Republicans, two democrats (Nebraska and Alaska) and of course Joe Lieberman, too temporary they say, 1 of 5 kids in this country live in poverty, bridges are falling down, veterans have no jobs. What a great Congress we have. Remember, it's Congress that holds the purse strings, they pass the laws and it is the Republica...n majority in the House that is holding the country hostage as they continue their quest to make our President fail - and guess who's paying for that - the 99% who collective income fell by $4.5 Billion, while income for the 1% rose by 120 Billion. I'm am one of the 99%, I'm pissed, I have a photo ID, and I VOTE.

[canadews]

Not sure if people are interested in the Canadian side of things, but if you think incomes must be much less unequal in good 'ole Canada, they're not.

I wrote the following to dispel some of the myths about Canada and give reasons why the Occupy protests are also happening here. Yes, less unequal than the U.S., but not as much as one might think.

How does Canada's 1% compare to other countries?
http://www.reworkit.net/2011/10/14/how-does-canada-1-percent-compare-to-other-countries/

[mb99]

I have to disagree with the term "rose slightly" when describing the wealthy's income increase from 2009 to 2010... do the math... that's a 15% increase. When is the last time the bottom 99% collectively got a 15% annual increase? NEVER... that's when.

[marychgo]

Not only is it a 15% increase, it's a dollar increase of $286,250: more than 10 times the median income. So for half of the 99%, one-fifth of the 1%ers' INCREASE would double their income. This is nuts, people. NO ONE's THAT valuable....

[sandiegopete]

The disparity will continue to grow. With the government in the firm control of the wealthest members of our society we will only see a continued decline in the standard of living for those Americans who are not part of the privileged upper class.

What we can expect to see in the near future will be continue deterioration of our roadways, continued increases in unemployment, continued decreases in hourly wages and continued decline in consumer demand from all but the privileged upper class. At this point, nothing can change the trends. When the big businesses in the U.S. discovered they could hire workers in foreign countries for 1/5 the pay required in the U.S. they put through free trade agreements what allowed them to circumvent the wage/hour and OSHA laws in the U.S. We will not see a significant increase in jobs in the U.S. until working conditions in our country decline to the point where a U.S. worker is treated and paid like one in India or Bangladesh.

[arthanyel]

Or until we change the rules so that there is less incentive to ship jobs overseas. There are options besides just raising trade barriers, but we need to start acting on them - quickly.

[sandiegopete]

Don't bet on any action on job flight to be taken at any time in the near future. U.S. companies make too much money exploiting foreign labor.

[70John76]

I wonder why I have NOT seen this on Fox News or their web site?
Bias.........B-----tards!!!!