By William Collins, consultant in stock markets – Eurasia Business News, September 10, 2025. Article no 1775

In 2024, inflation erased the income gains that most Americans experienced, with median household income essentially unchanged from 2019 after adjusting for inflation. The Census Bureau reported the median inflation-adjusted household income at $83,730 in 2024, a slight 1.3% increase from 2023 but statistically insignificant compared to 2019 levels.

This reflects how inflation offset wage increases gained post-pandemic, especially impacting middle- and lower-income households, while the richest 10% saw real income growth. The income gap widened as women and Black households lost ground relative to others, with wage disparities increasing. Poverty rates remained largely stable in 2024, though disparities by race and gender persisted.

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Details on Income and Inflation Effects

  • Median household income in 2024 was stagnant in real terms compared to 2019, despite some nominal wage increases after the pandemic.
  • The richest 10% had a real income increase of 4.2%, while the poorest tenth improved only by 2.2%.
  • Inflation was measured at an average of 2.9% in 2024, down from around 8% in the prior two years, but still enough to nullify much wage progress for typical households.
  • Women saw minimal income gains, widening the gender wage gap, with women earning about 81% of what men earned—a decline from previous years.
  • Racial disparities emerged: Asian and Hispanic households reported solid income gains, whereas Black household incomes declined by 3.3%.

Impact on Poverty and Economic Outlook

The official poverty rate slightly decreased to 10.6% in 2024 but remained near recent historical levels.

The supplemental poverty measure, which includes non-cash benefits, remained unchanged at 12.9%.

Experts note that the end of pandemic-era financial supports like child tax credits makes it harder to reduce poverty further without new policies.

The economic frustrations of middle- and lower-income Americans relate to inflation eroding real income gains amid rising costs and a cooling labor market.

This reflects a broader economic challenge where wage increases have not kept pace with cost-of-living increases, leaving many Americans’ financial situations effectively flat over the recent years despite nominal gains.

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© Copyright 2025 – Eurasia Business News. Article no. 1775