The real income of U.S. households has declined for the fifth consecutive year

The real income of U.S. households has declined for the fifth consecutive year. The income of a typical American family is lower than the level in 1989 in real terms, and household income has declined for the fifth consecutive year. …

The failure of the economic recovery to bring any benefits to the American middle class underscores the ongoing challenges the Federal Reserve still faces. The Fed has decided to continue maintaining its monthly asset purchases of $85 billion.

The data also increased pressure on the left for Barack Obama to name Janet Yellen as the next Fed chair. Yellen is widely seen as one of the policymakers most concerned about high unemployment.

Obama has made median income one of the signature issues of his presidency.

U.S. Census Bureau data show that median household income fell from $51,100 to $51,017 in 2012, a 0.2% decline from last year’s median income and 8.3% below the pre-recession peak in 2007. Last year, the western region had the highest income level ($55,157), while the southern region had the lowest income ($48,033). Additionally, the Census Bureau publishes the National Poverty Survey. In 2012, there were 46.496 million poor people in the United States, with a poverty rate of 15.0%. There are 1.921 million Asians living in poverty, with a poverty rate of 11.7%, a decrease of 52,000 from last year. Non-Latino whites have the lowest poverty rate, at 9.7%, while Latinos and blacks have the highest poverty rates, at 25.6% and 27.2%, respectively.

These annual data from the U.S. Census Bureau indicate that the American middle class is gradually becoming a "lost generation." "Poverty is worse today than in 2000 and household incomes are lower," said Sheldon Danziger, president of the Russell Sage Foundation, a social science research funder.