Standard of living in the United States

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Median gross annual household and personal income in 2005.
Median gross annual household and personal income in 2005.[1][2][3]
Median household income and GDP per capita levels in selected developed nations.
Median household income and GDP per capita levels in selected developed nations.
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The standard of living in the United States is one of the top 10 in the world by the standard economist measure of standard of living. Per capita income is high but also less evenly distributed than in most other developed countries; as a result, the United States fares particularly well in measures of average material well being that do not place weight on equality aspects.

On comprehensive measures such as the UN Human Development Index the United States is always in the top twenty, currently ranking number twelve. On the Human Poverty Index the United States ranked 16th, one rank below the United Kingdom and one rank above Ireland.[4] On the Economist's quality-of-life index the United States ranked 13, in between Finland and Canada, scoring 7.6 out of a possible 10. The highest given score of 8.3 was applied to Ireland. This particular index takes into account a variety of socio-economic variables including GDP per capita, life expectancy, political stability, family life, community life, gender equality, and job security.[5]

The homeownership rate is relatively high compared to other post-industrial nations. In 2005, 69% of Americans resided in their own homes, roughly the same percentage as in the United Kingdom, Belgium, Israel and Canada.[6] [7] [8] Residents of the United States also enjoy a high access to consumer goods. Americans enjoy more radios per capita than any other nation [9] and more televisions and personal computers per capita than any other large nation.[10] [11]

The median income is $43,318 per household ($26,000 per household member)[1] with 42% of households having two income earners.[12] Meanwhile, the median income of the average American age 25+ was roughly $32,000[2] ($39,000 if only counting those employed full-time between the ages of 25 to 64) in 2005.[3] According to the CIA the gini index which measures income inequality (the higher the less equal the income distribution) was clocked at 45.0 in 2005,[13] compared to 32.0 in the European Union[14] and 28.3 in Germany.[15]

“ The US has... a per capita GDP [PPP] of $42,000... The [recent] onrush of technology largely explains the gradual development of a "two-tier labor market"... Since 1975, practically all the gains in household income have gone to the top 20% of households... The rise in GDP in 2004 and 2005 was undergirded by substantial gains in labor productivity... Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups. -CIA factbook on the US economy, 2005.[13] ”

The United States has one of the widest rich-poor gap of any high-income nation today, and that gap continues to grow.[16] In recent times, some prominent economists including Alan Greenspan have warned that the widening rich-poor gap in the U.S. population is a problem that could undermine and destabilize the country's economy and standard of living.[17]

Country Austria Belgium Denmark France Ireland Norway Spain Portugal UK US Israel Canada
Homeownership rate[6] 56% 71% 51% 55% 42% 77% 77% 85% 64% 69% 69% 82%

Contents

[edit] International household income comparison

Main article: Household income in the United States
Further information: Personal income in the United States

Median household income for other countries is shown in the table below. The data for each country has been converted to US dollars using Purchasing Power Parity (obtained from the OECD).[18]

Template:International median household income(s)}}

[edit] Social class

Main article: Social class in the United States

Standard of living in the United States varies considerably with socio-economic status. The table below gives a summarization of prominent academic theories on the socio-economic stratification of the United States:

Academic Class Models
Dennis Gilbert, 2002 William Thompson & Joseph Hickey, 2005 Leonard Beeghley, 2004
Class Typical characteristics Class Typical characteristics Class Typical characteristics
Capitalist class (1%) Top-level executives, high-rung politicians, heirs. Ivy League education common. Upper class 1% Top-level executives, celebrities, heirs; income of $500,000+ common. Ivy league education common. The super-rich (0.9%) Multi-millionaires whose incomes commonly exceed $350,000; includes celebrities and powerful executives/politicians. Ivy League education common.
The Rich (5%) Households with net worth of $1 million or more; largely in the form of home equity. Generally have college degrees.
Upper middle class1 (15%) Highly educated (often with graduate degrees), most commonly salaried, professionals and middle management with large work autonomy Upper middle class1 (15%) Highly educated (often with graduate degrees) professionals & managers with household incomes varying from the high 5-figure range to commonly above $100,000 Middle class (plurality/
majority?; ca. 46%)		 College educated workers with incomes considerably above-average incomes and compensation; a man making $57,000 and a woman making $40,000 may be typical.
Lower middle class (30%) Semi-professionals and craftsmen with a roughly average standard of living. Most have some college education and are white collar. Lower middle class (32%) Semi-professionals and craftsman with some work autonomy; household incomes commonly range from $35,000 to $75,000. Typically, some college education.
Working class (30%) Clerical and most blue collar workers whose work is highly routinized. Standard of living varies depending on number of income earners, but is commonly just adequate. High school education. Working class (32%) Clerical, pink and blue collar workers with often low job security; common household incomes range from $16,000 to $30,000. High school education. Working class
(ca. 40% - 45%)		 Blue collar workers and those whose jobs are highly routinized with low economic security; a man making $40,000 and a woman making $26,000 may be typical. High school education.
Working poor (13%) Service, low-rung clerical and some blue collar workers. High economic insecurity and risk of poverty. Some high school education.
Lower class (ca. 14% - 20%) Those who occupy poorly-paid positions or rely on government transfers. Some high school education.
Underclass (12%) Those with limited or no participation in the labor force. Reliant on government transfers. Some high school education. The poor (ca. 12%) Those living below the poverty line with limited to no participation in the labor force; a household income of $18,000 may be typical. Some high school education.
References: Gilbert, D. (2002) The American Class Structure: In An Age of Growing Inequality. Belmont, CA: Wadsworth; Thompson, W. & Hickey, J. (2005). Society in Focus. Boston, MA: Pearson, Allyn & Bacon; Beeghley, L. (2004). The Structure of Social Stratification in the United States. Boston, MA: Pearson, Allyn & Bacon.
1The upper middle class may also be referred to as "Professional class" Ehrenreich, B. (1989). The Inner Life of the Middle Class. NY, NY: Harper-Colins.

[edit] See also

[edit] References

  1. ^ a b US Census Bureau news release in regards to median income. Retrieved on 2006-06-29.
  2. ^ a b US Census Bureau, personal income distribution, age 25+, 2006. Retrieved on 2006-12-28.
  3. ^ a b US Census Bureau, income distribution of individuals, employed full-time, year round, age 25-64, 2006. Retrieved on 2006-12-27.
  4. ^ Human Poverty Index. Retrieved on 2007-02-14.
  5. ^ Economist, quality of life index. Retrieved on 2007-02-14.
  6. ^ a b EU homeownership rates, 2002. Retrieved on 2007-02-15.
  7. ^ OWNED DWELLINGS, Israel. Retrieved on 2007-04-17.
  8. ^ Home Ownership Rate Soars in Canada. Retrieved on 2007-04-17.
  9. ^ Median radios per capita. Retrieved on 2007-02-15.
  10. ^ Median TVs per capita. Retrieved on 2007-02-15.
  11. ^ Median PCs per capita. Retrieved on 2007-02-15.
  12. ^ US Census Bureau, income quintile and top 5% household income distribution and demographic characteristics, 2006. Retrieved on 2006-12-28.
  13. ^ a b CIA factbook, US gini index. Retrieved on 2007-01-04.
  14. ^ CIA factbook, EU gini index. Retrieved on 2007-01-04.
  15. ^ CIA factbook, Germany gini index. Retrieved on 2007-01-04.
  16. ^ Rich-Poor Gap Widening. Retrieved on 2006-07-27.
  17. ^ Rich-poor gap gaining attention. Retrieved on 2006-07-27.
  18. ^ OECD, PPP conversion rates. Retrieved on 2006-01-20.
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Life in the United States