Economy

Last edited Sun Mar 20, 2016, 09:26 PM - Edit history (1)

Strictly speaking, "per capita income" refers to GDP per person. According to the latest data, U.S. GDP in 2015 was $17.943 trillion; and the Census Bureau's best guess as to U.S. population, 321.3 million. That would give you $55,845.

Of course, when people think of "income" they naturally think of personal income: wages, tips, fringe benefits, rental and investment income, government checks, and other transfers (settlements, lotteries, and such). That amounted to $15.342 trillion in 2015, or $47,750 per person.

But as you pointed out, income in the U.S. is not very evenly distributed. And just how unevenly is a subject of debate, since although IRS data tells us that the top 1% earned 19% of income in 2013 (latest available year), it's common knowledge that they under-report a substantial share of their income (besides availing themselves of all those unethical - but legal - tax loopholes). But let's take the 19% figure. That would leave $12.427 trillion, or $39,065 per person for everyone in the remaining 99%.

Finally, there's the question of median income - the figure that divides the population in precisely half. The Census Bureau tells us that in 2014 (the latest year), the median household income was $53,657. And how many folks did a median household have? Believe it or not, just two people (actually 1.7; but since, unless you live with Jeffrey Dahmer, that's physically impossible, we'll leave it at two).

So what does the most "typical" household in America experience in terms of income? $53,657 for two people, or $26,829 per capita. That's as of 2014, so in 2015 it had to have been around $27,500.

Now take your total household income (including any investment income) and divide it by the number of people that normally live at home. If it's more than $27,500, you're doing better than the average Joe.

(well, assuming you live somewhere with an average cost of living).