In 2022, the median household income in the United States was $74,580, with just over half of American households earning less than $75,000 annually. This statistic highlights the significant income disparity that exists across the country, a trend that has become more pronounced since the economic recession of 2009. The Northeast region, including states like Maryland, New Jersey, and Massachusetts, is among the wealthiest, boasting some of the highest median household incomes.
Income inequality is also evident when examining earnings by race and ethnicity. For instance, in 2020, the average income for Asian households was $94,903, while Black households earned around half of that amount. This disparity underscores the broader economic challenges faced by minority communities in the U.S.
The U.S. Census Bureau updates its poverty thresholds annually, and in 2021, the average poverty threshold for a family of four was $26,500. Approximately 37.9 million people, or 11.6% of the population, lived in poverty that year. The poverty rate was notably higher among Black Americans (19.5%) compared to white Americans (8.2%).
### Income Distribution and High Earners
A significant portion of the American population falls into the middle-income brackets, earning between $50,000 and $150,000 annually. However, a smaller yet substantial segment of the population earns significantly more. Specifically, 15.5% of Americans earn between $100,000 and $149,999 per year, 8.3% earn between $150,000 and $199,999, and 10.3% earn over $200,000.
Despite these high earnings, many Americans still face financial challenges. For instance, 45% of those earning over $100,000 live paycheck-to-paycheck. This statistic has increased from 38% in 2021, indicating that higher income does not necessarily equate to financial stability. Additionally, 82% of Americans making over $100,000 per year believe they need to earn at least $200,000 to consider themselves wealthy, contrasting with the 56% of Americans who think $100,000 per year would make them rich.
### Gender Disparities in High Earnings
Gender disparities persist among high earners in the U.S. In 2022, 17% of men earned over $100,000 annually, compared to only 8.4% of women. This gap is even more pronounced among full-time workers, with 28.4% of men earning over $100,000 compared to 18.5% of women. Cities like San Jose, California, have the highest percentage of women earning $100,000 or more, at 34%, followed by San Francisco (31%) and Washington, D.C. (27%).
The gender pay gap remains a significant issue, with the average woman earning 83% of what her male counterparts earn. Over a 40-year career, this disparity can result in women earning $80,000 less than men.
### Racial Disparities in High Earnings
Income disparities are also evident across different racial groups. Asian households are the highest earners, with 51% making $100,000 or more annually. In contrast, 37% of white households, 27% of Hispanic households, and only 22% of Black households earn over $100,000 per year. These disparities highlight the systemic economic challenges faced by minority communities.
### Age and High Earnings
Age is another factor influencing high earnings. Younger Americans are less likely to earn over $100,000, with only 1% of those under 25 reaching this income level. However, the percentage increases significantly with age, peaking at 21% for those aged 66 and older. The most substantial income gains occur between the ages of 25 and 35, with the percentage of high earners increasing from 2% to 12%.
### Trends Over Time
The number of Americans earning over $100,000 has increased over time. Between 2017 and 2022, the share of households making over $100,000 rose by 2.97%. This trend is part of a broader increase since 1980, when only 17.4% of Americans earned $100,000 or more, compared to 34.4% in 2022.
Despite these increases, high earners are not immune to economic concerns. A significant 96% of Americans earning $100,000 or more are worried about inflation, with 65% being “very concerned.” This concern has led 46% of high earners to cut their spending in 2022.
### Conclusion
In summary, while a significant portion of Americans earn over $100,000 annually, this income level does not necessarily guarantee financial stability. Gender and racial disparities persist, and many high earners still live paycheck-to-paycheck. The number of high earners has increased over time, but economic concerns like inflation continue to impact their financial well-being. Addressing these disparities and providing equal opportunities for all workers is essential for improving the economic landscape in the U.S.
Source: MarketWatch, U.S. Census Bureau, BLS, CNBC
