The Blubber

Wages have increased by 19% in the US since 2006.

But when you factor in inflation, "real wages" have declined by 8.8%, per Payscale.

Economic blogger Kevin Drum recently highlighted data on inflation-adjusted median household income from the US Census Bureau, focusing on millennials, Gen X, and boomers. The figures reveal that millennial households, particularly those at age 40 (the oldest segment of the generation), are earning $85,000. This surpasses the earnings of Gen X at the same age, which were $77,000, and boomers, who earned $70,000.

Drum acknowledges that the increase in household income might be attributed to a rise in two-earner families. However, a closer look at median personal income within the same age range across the three generations indicates that millennials are still earning more. The average 40-year-old millennial earns $49,000, representing a 25% increase compared to the $39,000 earned by their boomer counterparts at the same age. (Gen Xers at age 40 typically earned $43,000.)

Despite the higher earnings, millennials possess less wealth than previous generations did at their age. Fed data from recent years shows that when boomers were approximately the age of today's millennials, they held about 21% of America's wealth, while millennials now hold a 5% share.

On a positive note, older millennials have made significant progress in wealth accumulation. In 2016, they had a wealth deficit of 34%, which narrowed to 11% by 2019, according to a report from the Federal Reserve Bank of St. Louis. However, the impact of the pandemic on these gains remains uncertain, and their wealth levels have not yet reached the desired benchmarks.