Median household income rises under Biden despite challenges

In the United States, the Census Bureau has reported a modest increase in median household income, which rose approximately $2,150 during the Biden administration. Despite these gains, median income levels only returned to their inflation-adjusted pre-pandemic heights in 2023, highlighting a prolonged economic recovery following the disruptive impacts of the Covid-19 pandemic. The current median household income stands at $83,730, reflecting stability yet not extensive growth across the majority of income brackets, particularly for lower income households. The report shows that while the top 10% of earners saw a 4.2% increase in income in 2024, the bottom 10% experienced almost no change. This inequality is further emphasized by a declining female-to-male earnings ratio, which decreased to 80.9% in 2024 from 82.7% the previous year. Observers note with concern the widening gender wage gap, especially as many women, including mothers, are leaving the workforce at unprecedented rates. The poverty rate in the country has also seen a slight decline, down to 10.6% in 2024, compared to 11.5% in 2020 before Biden's presidency. However, the economic situation for specific groups, such as Black households, has been mixed, experiencing a 3.3% decline in their median income while full-time worker earnings remained steady. In contrast, Hispanic and Asian households reported significant income increases of 5.5% and 5.1%, respectively, with their poverty rates declining as well. The health insurance landscape saw stability in the uninsured rate, holding at 8%, even as the expiration of a pandemic-era relief program and subsequent growth in sign-ups under the Affordable Care Act occurred. Medicaid coverage did, however, decline slightly from the previous year. Experts caution that the outlook for 2025 may involve less favorable conditions as inflation persists and labor market indicators suggest cooling economic activity. This data, which is based on a comprehensive survey of 3.5 million U.S. households, underlines the complex economic landscape faced by American families and the challenges that lie ahead, particularly for marginalized groups. The report highlights a notable decrease in income inequality between 2023 and 2024, with states such as Iowa, Nebraska, Ohio, South Dakota, and Wisconsin showing significant advancements. Despite this progress, North Carolina saw an increase in inequality, indicating that economic disparities vary greatly across the nation. The overall findings depict a scenario of both stability and concern, as certain demographics are either benefiting from the recovery or continuing to experience stagnation and decline.