You probably heard that the variety and quality of economic data are being challenged by the cutback in federal workers who collect such data. For most folks it’s no big deal. There are already too many numbers produced by the big three federal statistical agencies, the Census Bureau, the Bureau of Labor Statistics, and the Bureau of Economic Analysis.

For the millions of businesses and governments who do need the data, they will just have to get along with less and/or lower quality data. After all, it’s just a transitory deprivation on our way to the glory that awaits us.

In this spirit of sacrifice for the greater good, let me lay a few numbers on you. There will be questions unanswered, but that’s just the geekiness we had before the Elonlight was shown upon us.

In 2023, the median household income, adjusted for inflation, was $78,538 in the United States ($70,051 in Indiana, 11% short of the nation). Ten years earlier, it was $53,046 and $48,248 respectively (with Indiana then 9% below the national figure). If you listen to many folks talking about the economy, they are unhappy. They don’t believe the figures.

But think about all the workers who now get more money for asking, “And do you want fries with that order?” The hourly minimum wage has risen, monthly social security payments have risen, annual earnings for babysitters have risen, and there have been some real improvements in healthcare that cost more with better results than the less costly treatments of a decade ago.

We’re in for some backsliding with the current Washington and state capital leadership. Yes, we were doing so well many folks felt no horror in electing more ignorant representatives and leaders to amuse us with their antics. A wealthy population can afford more entertainment from government.

Plus, we’re discussing median income, not median earnings. Income includes capital gains which get favorable treatment from our tax laws. Income can also be derived from greater profits as states cut taxes on businesses. In fact, didn’t Indiana do just that by moving along a phaseout of the business personal property tax?

In addition, there’s the whole idea of the median income which means half of those with income are above that figure and half below. Were those data from the IRS? That would make them higher than from some other sources. The Internal Revenue Service gathers its data from tax returns. Lots of folks don’t file tax returns because their incomes are too low for them to pay any income tax.

Well, it’s no use to fuss about such things. Our leaders do understand they don’t understand using data and they’ll get rid of as much data as they can while in office.
Morton J. Marcus is an economist formerly with the Kelley School of Business at Indiana University. His column appears in Indiana newspapers, and his views can be followed his podcast.

© 2025 Morton J. Marcus

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