Household Income Sinks to ’95 Level

12-Sep (Wall Street Journal) — The income of the typical U.S. family has fallen to levels last seen in 1995, a long and pernicious slide that likely means it will be a generation before Americans regain the peak income levels reached at the close of the ’90s.

A report from the Census Bureau Wednesday said annual household income fell in 2011 for the fourth straight year to an inflation-adjusted $50,054.

Median annual household income—the figure at which half are above and half below—now stands 8.9% below its all-time peak of $54,932 in 1999, at the end of the 1990s economic expansion.

[source]

PG View: What this tells me is the Fed is going to have to try all that much harder to create the inflation it desires. Further confirmation that we’re in for a long slog of sluggish growth and negative real interest rates.