Something isn't adding up. Hmm. Averagee expenses vs income. Very fishy...

Discussion in 'Wall St. News' started by S2007S, Jan 30, 2024.

  1. S2007S

    S2007S

    The Average American's Household Expenses Are $6,081 A Month Or $72,967 A Year — But The Median Annual Household Income Is Just $74,580


    Something just doesn't seem right. Where are consumers finding money to spend, I see that credit card debts are at 1 trillion,, making that the highest in history...and most probably paying off credit card debts at an 18-24% APR


    With gdp recently showing strong results at 3.3% and consumer spending making up for 70% of gdp where oh where are they getting money to spend. Does the consumer ever get tapped out ....





    https://finance.yahoo.com/news/average-americans-household-expenses-6-180012555.html
     
    Last edited: Jan 30, 2024
  2. maxinger

    maxinger

    If the answer is not in the report,
    then most likely the report is written by a newbie small kid.
    Give him time and he will improve his writing skills.
     
    smallfil and murray t turtle like this.
  3. Real Money

    Real Money

    Pointless to compare average expense to median income. Income and expenses are skewed right.
     
    murray t turtle and tomorton like this.
  4. tomorton

    tomorton

    Average income is meangless. Median income is the one which tells you something useful as a comparison to others - the median income is the level with 50% of the population above and 50% of the population below.
     
    jys78 likes this.
  5. S2007S

    S2007S



    Average was on the EXPENSE side not income....
     
  6. S2007S

    S2007S

    $74,580
    Highlights. Real median household income was $74,580 in 2022, a 2.3 percent decline from the 2021 estimate of $76,330 (Figure 1 and Table A-1).Sep 12, 2023
     
  7. S2007S

    S2007S



    Skewed by the government or just in general???
     
  8. tomorton

    tomorton

    Same principle - comparing averages with medians is ignorant. Average and median incomes are readily available statistics, but I have never even seem median expenses expressed.
     
  9. S2007S

    S2007S


    So basically the entire article is garbage....not even worth comparing and contrasting such figures
     
    tomorton likes this.
  10. Snuskpelle

    Snuskpelle

    Comparing avg and medians for values depending on wealth in the US is meaningless indeed. An example of why:

    [​IMG]
    The skew is massive. The chart I managed to find with a 1 min search is for equity ownership, but charts for income and expenses would look quite similar. So the averages are pumped up whereas the median is way below.

    Also it's a useful reminder for Americans that roughly speaking, 1% of them own half of society, whereas the other half is owned by another 9% of them. Why the remaining 90% put up with this is beyond me.
     
    Last edited: Jan 30, 2024
    #10     Jan 30, 2024
    tomorton likes this.