The Six Year Pay Cut

It took six years for wages to recover from the recession in the 2000/2001 time frame as reported by analysis of the IRS reports. Obviously wage growth outpaced productivity returns during the late ’90s so a natural contraction was needed to clear out the waste. But six years is still a lot of time to just get back, especially when you consider the productivity gains made during the last 5 years. Here are some of the stats:

Adjusted Tax Returns:

2000 – $57,289
2001 – $51,870
2006 – $58,029
Percent increase from 2000 to 2006 – 1.2%

Total income increase by $619.2 Billion, an 8.3% increase

All of it went to people earning more than $75,000
$260 Billion of that total went to those making over $1 million

Average Wage:

2000 – $47,097
2003 – $45,956
2006 – $46,996

More information on the subject can be found at this David Cay Johnston article called Average U.S. Income Rose in 2006 in the NY Times

About benleeson
My name is Ben Leeson. I currently work for a large financial company in IT. I went to school at Marist College in Poughkeepsie, NY. I graduated with a B.S. in Business Administration concentrating in HR. Professor William Brown taught me and I enjoyed his classes; even acquiring an appreciation for just about all things HR. I didn’t pursue a job in that field after college but I’ve kept up with it. This blog will further my fascination with all things HR. I hope to grow my knowledge of the area through thoughtful writings and spirited feedback. I will attempt to have a fairly routine style so anyone reading can come to expect certain segments. Please excuse my incorrect grammar and occasional misspelling.

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