disposable

This disposable income chart from the Fed might shock you

One way to check the health of the economy is to track disposable personal income.

Calculating disposable personal income is simple:

DI = PI – PT

Disposable income (DI) is the net amount leftover when Personal Taxes (PT) is subtracted from Personal Income (PI).

Here in the States, disposable personal income per capita has been climbing since the 1960s:

real disposable personal income per capita

Here is a state-by-state chart of disposable income:

State 2001 2014 Difference
Alabama $22,705 $34,064 150%
Alaska $29,362 $48,132 164%
Arizona $23,918 $34,202 143%
Arkansas $21,168 $34,173 161%
California $28,758 $43,258 150%
Colorado $30,425 $42,684 140%
Connecticut $35,727 $52,250 146%
Delaware $29,193 $40,748 140%
District of Columbia $38,130 $66,559 175%
Florida $26,926 $38,250 142%
Georgia $25,622 $34,921 136%
Hawaii $25,973 $41,827 161%
Idaho $22,903 $34,016 149%
Illinois $29,078 $41,889 144%
Indiana $25,040 $35,281 141%
Iowa $25,132 $40,252 160%
Kansas $26,118 $40,613 156%
Kentucky $22,463 $33,925 151%
Louisiana $22,375 $38,213 171%
Maine $24,636 $37,846 154%
Maryland $31,249 $48,083 153%
Massachusetts $32,820 $50,394 154%
Michigan $26,190 $35,941 137%
Minnesota $28,613 $42,221 148%
Mississippi $20,534 $31,529 154%
Missouri $25,108 $37,267 148%
Montana $21,918 $36,148 165%
Nebraska $26,592 $42,019 156%
Nevada $27,854 $35,946 129%
New Hampshire $30,557 $47,894 158%
New Jersey $34,025 $49,267 148%
New Mexico $22,565 $34,360 152%
New York $29,938 $47,522 159%
North Carolina $24,750 $35,437 143%
North Dakota $23,843 $47,621 199%
Ohio $25,379 $37,800 149%
Oklahoma $23,499 $38,863 165%
Oregon $25,314 $36,652 145%
Pennsylvania $27,337 $42,253 155%
Rhode Island $27,257 $43,534 160%
South Carolina $22,823 $33,440 147%
South Dakota $25,813 $42,133 163%
Tennessee $25,329 $37,398 148%
Texas $26,385 $40,798 155%
Utah $22,556 $33,718 147%
Vermont $26,221 $42,609 162%
Virginia $28,794 $43,605 151%
Washington $29,187 $44,504 152%
West Virginia $20,686 $33,237 161%
Wisconsin $26,369 $39,543 150%
Wyoming $26,830 $47,595 177%
New England $31,873 $48,661 153%
Mideast $30,236 $46,661 154%
Great Lakes $26,647 $38,392 144%
Plains $26,271 $40,446 154%
Southeast $24,884 $36,691 147%
Southwest 25,444 $39,150 154%
Rocky Mountain $26,460 $38,839 147%
Far West $28,459 $42,590 150%
United States $27,195 $40,670 150%

Source: http://lwd.dol.state.nj.us/labor/lpa/industry/incpov/dpci.htm

If we can trust the Federal Reserve’s statistics, every state saw a large increase over the course of 13 years.

This means Americans are (on the whole) richer than ever, right?

Well, technically yes.

But while the disposable personal income numbers increase, so does our spending.

This chart shows our saving’s rate is steadily declining over the last 40 years:

personal savings rate

Americans saved (on average) 13.9% of their income in 1975…

But today, we only save 4.9% of our disposable income.

Yep, we own more cheap junk made in China, but our savings’ accounts are lower than ever.

Are times good for you?

Published by

Markus Allen

Family man. Truth seeker. Life hacker... more about me here...

 


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