The living wage for Americans across the country continues to drop, according to the latest figures released Wednesday by the U.S. Census Bureau. But in the Census-designated southern region, of which Maryland is a part, real income numbers had a small net gain.
The average purchasing power of American families dropped 1.5 percent in 2011, standing at $50,054, with a before-tax average income at just over $62,000.
The South region, comprised of 16 states and Washington, DC, was the only region in the country to see a rise in purchasing power, however slight. The South’s median household income grew from $46,875 in 2010 (calculated using 2011 dollar values) to $46,899 in 2011—a 0.1 percent increase.
The South was also the only region to show positive changes in the poverty rate, which fell from 16.8 percent to 16 percent between 2010 and 2011, a difference of 743,000 people. The nationwide average poverty rate remained at 15 percent, with 46.2 million people at that level.
Do you continue to feel the strain of the nation's economy? What cutbacks have you made over the last year? Or, have you loosened the belt a little?
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Sure, salaries have not gone down. Honestly, I don't think that's a valid measure as you never hear of salaries going down, just of jobs being eliminated. What is happening, and what the article elaborates upon, is the cost of items increasing faster than salaries, making the net effect negative. My raises have not covered my rent increases. My renter's insurance went up 30% this year. Gas is $1 a gallon more than when I moved here 2 years ago. With the extreme drought this year, food prices are going to start skyrocketing. It is well documented that the jobs that have been created are low-paying, no benefit jobs (as you describe above - retail and restaurant). Those will not help kick-start spending, or an economic recovery.
Housing is the number 1 household cost, at close to 30%. 20% of household costs are spent on transportation and gasoline. That makes the increase in gas a larger impact than you think. Food is the next in line. If you have not seen the price of food going up, you haven't been paying attention. People may still be dining out, but menu prices have crept up. We can adapt, and many people have. But when your basic needs eat up so much of your budget, there is only so much adaptation you can make.