Americans' inflation-adjusted incomes rebounded to pre-pandemic levels last year

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Americans' inflation-adjusted incomes rebounded to pre-pandemic levels last year

2024-09-11 01:00 Last Updated At：01:10

WASHINGTON (AP) — The inflation-adjusted median income of U.S. households rebounded last year to roughly its 2019 level, overcoming the biggest price spike in four decades to restore most Americans' purchasing power.

The proportion of Americans living in poverty also fell slightly last year, to 11.1%, from 11.5% in 2022. But the ratio of women's median earnings to men's widened for the first time in more than two decades as men's income rose more than women's in 2023.

The latest data came Tuesday in an annual report from the Census Bureau, which said the median household income, adjusted for inflation, rose 4% to $80,610 in 2023, up from $77,450 in 2022. It was the first increase since 2019, and is essentially unchanged from that year's figure of $81,210, officials said. (The median income figure is the point at which half the population is above and half below and is less distorted by extreme incomes than the average.)

“We are back to that pre-COVID peak that we experienced,” said Liana Fox, assistant division chief in the Social, Economic and Housing Statistics Division at the Census Bureau.

The figures could become a talking point in the presidential campaign if Vice President Kamala Harris were to point to them as evidence that Americans' financial health has largely recovered after inflation peaked at 9.1% in 2022. On Wednesday, economists predict that the government will report that inflation fell from 2.9% in July to 2.6% in August. The Federal Reserve, whose target level for inflation is 2%, is poised to start cutting interest rates next week.

Former President Donald Trump might counter that household income grew much faster in his first three years in office than in the first three years of the Biden-Harris administration, though income fell during his administration after the pandemic struck in 2020.

The data showed that while the typical American household regained its 2019 purchasing power in 2023, it essentially experienced no rise in living standards over that time. That is a sharp difference from the preceding four years, when inflation-adjusted median incomes rose 14% from 2015 through 2019.

The data is based on pre-tax incomes, including Social Security and other benefit programs, though it excludes noncash benefits such as food stamps and Medicaid.

The jump in incomes reflects solid job creation last year, which helped reduce the unemployment rate to a half-century low of 3.4% in April 2023. The proportion of Americans in the so-called prime age group of 25-to-54-year-olds with jobs averaged 80.7% last year, the highest level in 23 years. Economists often focus on prime-age workers because they exclude younger people, who are often still in school, and older workers, who are more likely to retire or reduce their hours.

By racial groups, median household income rose 5.4% for whites to $84,630, increased 2.8% for Black Americans to $56,490 and was unchanged for Hispanics at $65,540. Asian incomes were also largely unchanged at $112,800.

While the overall poverty rate declined from 2022 to 2023, under an alternative measure of income the proportion of children in poverty rose from 12.4% to 13.7%. The bump in child poverty comes two years after it had plunged to just 5.2%, when the pandemic-era expansion of the child tax credit provided enhanced benefits to families. But the credit expired in 2022.

“If you want to reduce poverty in the short run, you transfer income to poor families," said Steven Durlauf, an economist at the University of Chicago.

Census also calculated that 92% of Americans had health care in 2023, largely unchanged from the previous year, though the proportion of uninsured children ticked up a half-point to 5.8%.

Tampa Bay hasn’t been hit directly by a major hurricane since 1921. Milton may be the one

2024-10-08 15:34 Last Updated At：15:40

FORT MYERS BEACH, Fla. (AP) — Florida's Gulf Coast braced Tuesday for the impact of Hurricane Milton's winds and expected massive storm surge, which could bring destruction to areas already reeling from Helene's devastation 12 days ago and still recovering from Ian's wrath two years ago.

Almost the entirety of Florida's west coast was under a hurricane warning early Tuesday as the storm and its 155 mph (250 kph) winds crept toward the state at 9 mph (14 kph), sucking energy from the Gulf of Mexico's warm water. The strongest Atlantic hurricane on record is 1980's Allen, which reached wind speeds of 190 mph (306 kph) as it moved through the Caribbean and Gulf before striking Texas and Mexico.

Milton was downgraded early Tuesday to a Category 4 hurricane, but forecasters said it still posed “an extremely serious threat to Florida.” Milton had intensified quickly Monday, becoming a Category 5 storm at midday with maximum sustained winds of 180 mph (285 kph) before being downgraded.

Milton's center could come ashore Wednesday in the Tampa Bay region, which has not endured a direct hit by a major hurricane in more than a century. Scientists expect the system to weaken slightly before landfall, though it could retain hurricane strength as it churns across central Florida toward the Atlantic Ocean. That would largely spare other states ravaged by Helene, which killed at least 230 people on its path from Florida to the Appalachian Mountains.

Tampa Bay has not been hit directly by a major hurricane since 1921, and authorities fear luck is about to run out for the region and its 3.3 million residents. President Joe Biden approved an emergency declaration for Florida, and U.S. Rep. Kathy Castor said 7,000 federal workers were mobilized to help in one of the largest mobilizations of federal personnel in history.

“This is the real deal here with Milton,” Tampa Mayor Jane Castor told a Monday news conference. “If you want to take on Mother Nature, she wins 100% of the time.”

The Tampa Bay area is still rebounding from Helene and its powerful surge — a wall of water up to 8 feet (2.4 meters) it created even though its eye was 100 miles (160 kilometers) offshore. Twelve people died there, with the worst damage along a string of barrier islands from St. Petersburg to Clearwater.

Forecasters warned that Milton could bring a possible 8- to 12-foot (2.4- to 3.6-meter) storm surge, leading to evacuation orders being issued for beach communities all along the Gulf coast. In Florida, that means anyone who stays is on their own and first responders are not expected to risk their lives to rescue them at the height of the storm.

Stragglers were a problem during Helene and 2022's Ian. Many residents failed to heed ample warnings, saying they evacuated during previous storms only to have major surges not materialize. But there was evidence Monday that people were getting out before Milton arrives.

A steady stream of vehicles headed north toward the Florida Panhandle on Interstate 75, the main highway on the west side of the peninsula, as residents heeded evacuation orders. Traffic clogged the southbound lanes of the highway for miles as other residents headed for the relative safety of Fort Lauderdale and Miami on the other side of the state.

About 150 miles (240 kilometers) south of Tampa, Fort Myers Beach was nearly a ghost town by Monday afternoon as an evacuation order took effect. Ian devastated the 5,000-resident community two years ago, its 15-foot (4.5-meter) storm surge destroying or severely damaging 400 homes and businesses. Fourteen people died there as they tried to ride out the storm, and dozens had to be rescued.

On Monday, the few residents who could be found were racing against the clock to safeguard their buildings and belongings. None said they were staying.

The signs of Ian's devastation remain visible everywhere. Rebuilt homes stand next to others in various states of construction. There are numerous vacant lots, which were once rare.

“This whole street used to be filled out with houses,” said Mike Sandell, owner of Pool-Rific Services. His workers were removing and storing pumps and heaters Monday from his clients' pools so they wouldn't get destroyed.

Home construction supplies like bricks, piping and even workers' outhouses lined the streets, potential projectiles that could do further damage if a surge hits.

At the beach Monday afternoon, workers busily emptied the triple-wide trailer that houses The Goodz, a combined hardware, convenience, fishing supply, ice cream and beach goods store. Owner Graham Belger said he moved his “Your Island Everything Store” into the trailer after Ian destroyed his permanent building across the street.

“We’ll rebuild, but it is going to be bad," he said.

Nearby, Don Girard and his son Dominic worked to batten down the family’s three-story combination rental and vacation home that’s about 100 feet (30.5 meters) from the water. Its first-floor garage and entranceway were flooded by Helene last month, Hurricane Debby in August, and a tide brought by a recent supermoon.

Ian was by far the worst. Its waves crashed into the 14-year-old home’s second floor, destroying the flooring. Girard repaired the damage, and his aqua-blue and white home stands in contrast to the older, single-story house across the street. It was submerged by Ian, never repaired and remains vacant. Its once-off-white walls are now tinged with brown. Plywood covers the holes that once contained windows and doors.

Girard, who owns a banner and flag company in Texas, said that while his feelings about owning his home are mostly positive, they are becoming mixed. He said every December, his extended family gathers there for the holidays. At that time of year, temperatures in southwest Florida are usually in the 70s (low 20s Celsius) with little rain or humidity. The area and its beaches fill with tourists.

“At Christmas, there is no better place in the world,” Girard said.

But flooding from Ian, the other storms and now Milton is leaving him frustrated.

“It’s been difficult, I’m not going to lie to you," Girard said. “The last couple years have been pretty bad.”

Daley reported from Tampa. Associated Press writers Mike Schneider in Orlando, Kate Payne in Tampa, Freida Frisaro in Fort Lauderdale, Seth Borenstein in Washington, Brendan Farrington in Tallahassee and Mark Stevenson in Mexico City contributed to this report.