May 22, 2014 by History in a Hurry
STOCKMAN’S QUICK TAKES
The Keynesian Economy In One Chart: Peak Real Median Income In USA=1999; 30 States=2004 Or Earlier; Washington DC=2012
by David Stockman • May 21, 2014
Sometimes a chart is worth a thousand words, and this is one. Real Median household income peaked way back in 1999 at $56,000 and by 2012 it was down 9%—an unprecedented decline. It goes without saying that Washington’s Keynesian ministrations on the money printing and national debt front didn’t much help.
In fact, the Fed’s balance sheet has expanded from $450 billion to $4.4 trillion during that period or by nearly 10X. Likewise, the national debt has nearly quadrupled to $17 trillion during the same period.
Well, all this monetary and fiscal profligacy did apparently help in one precinct: Namely, the Washington beltway where median household income reached its all-time high in 2012 (the last year available) of $65,200 and undoubtedly continues to rise. By contrast, 30 states reached their peak real household incomes more than a decade ago, and some reached that point more than two decades back.