Where Do I Find Income And Wealth?

Who has the money in the United States?

Where is it?

The U.S.Census Bureau does annual surveys that answer these questions.

The latest data is from 2021 and it shows that the median household income in 2021 was $70,784.

However, there are large variations in that income based on a number of factors.

One of the narratives that we often hear is that the “middle class is disappearing" in the United States.

Census Bureau data does show that the middle class is smaller ($35,000 to $100,000 in 2022 dollars) today (39.1% of all households) compared to 54.6% in 1967.

However, the data shows that those who have left the middle class have not regressed. They have moved up to higher incomes. 

37.5% of American households have incomes of $100,000 or more today. In 1967 only 13.1% did adjusted for inflation.

Let's look at household income by race.

We are told that the United States is a racist society and people of color have limited opportunities to get ahead. The deck is supposedly stacked against minority populations and immigrants.

However, Asians have the highest levels of income by a large margin.

Asian households are earning 30% more than White households.

Credit: https://www.pgpf.org/blog/2023/02/income-and-wealth-in-the-united-states-an-overview-of-recent-data

The Asian advantage has been there for some time but over the last decade it has accelerated.

Credit: https://www.pgpf.org/blog/2023/02/income-and-wealth-in-the-united-states-an-overview-of-recent-data

It should come as no surprise that higher household incomes are correlated with more education.

A household with a head of household with a college degree has a median income of $115,456.

A household in which there is no high school diploma is earning a median of $30,378.

Credit: https://www.pgpf.org/blog/2023/02/income-and-wealth-in-the-united-states-an-overview-of-recent-data

One reason that Asians have higher household incomes is the fact that education is given such a high priority in Asian American families.

66% of Asian Americans in the United States have a college degree in the age 25-64 age cohort compared to an overall average of 46%.

Interestingly, 35% of Blacks have college degrees compared to 28% of Hispanics. This is clearly related to the large number of Hispanic immigrants (legal and illegal) who did not have the opportunity or access to college in their home countries.

However, Hispanics still have higher median incomes than Blacks despite the educational disadvantage.

The accelerating advantage of Asian Americans in income looks like it can be partially explained by looking at recent college enrollment trends.

It also does not appear that this advantage is going to disappear anytime soon based on current college enrollment rates.

More than 80% of Asians graduating from high school in the United States enroll in college. It is around 60% for other races.

Credit: https://hechingerreport.org/proof-points-new-higher-ed-data-by-race-and-ethnicity/#:~:text=But%20racial%20gaps%20continue.,34%20percent%20have%20college%20degrees.

The benefits of education are even more pronounced when looking at household wealth.

A household that contains someone who has a graduate or professional degree has a median net worth that is 100 times that of a household where there is no high school diploma.

The graduate or professional degree equates to 10 times the net worth of high school degree.

Likewise, a high school graduate has, on average., almost ten  times the net worth of someone who did not graduate from high school.

Credit: https://www.pgpf.org/blog/2023/02/income-and-wealth-in-the-united-states-an-overview-of-recent-data

Consider these net worth and income numbers and ask why those with student debt believe their loans should be forgiven?

Maryland and D.C. have the highest median household incomes in the United States at over $90.000.

That is over 25% higher than the national average.

Source: https://worldpopulationreview.com/state-rankings/median-household-income-by-state

I don't think it is a coincidence that most federal government workers reside in Maryland, D.C and suburban Virginia.

Is it also a coincidence that 5 out of the 10 counties in the United States with the highest median household incomes are suburbs of Washington, D.C.?

ZipRecruiter.com calculates the average federal government worker in the D.C. area makes $106,688 per year.

Source: https://www.ziprecruiter.com/Salaries/Federal-Government-Salary-in-Washington,DC

The bottom 10 states for median household income are as follows.

Source: https://worldpopulationreview.com/state-rankings/median-household-income-by-state

In other words, the median household in Maryland or D.C. is making almost twice as much as in Mississippi.

Are you looking to find someone with income and wealth?

Where would you start your search?

My advice is to go to the D.C. area, find an Asian American with at least a college degree who also works for the federal government.

You are likely to find someone with money in their pocket.