The rate of employment and economic growth are the two major factors that influenced the median income in 2014, according to CNN Money. A strong economic growth led to an improvement in the median income, while unemployment kept it below the figures reported in 2007, before the financial crisis began.Continue Reading
A recovering economy is the major contributor to the increased 2014 American median income. The economy of the United States has been improving since the 2009 global financial crisis. Unemployment, on the contrary, has been the impediment to the increase in the median, which has led to it being below the figures before the financial crisis, claims CNN Money. An increased number of small- and medium-sized businesses has provided employment to many Americans, allowing them to generate an income. Young people and African-American households reported an improvement in the median income, further increasing the overall median income for the country.
Despite the improved median income, the American middle class is still relatively poor compared to other countries, notes CNN Money. Relative to 2007 and 2000, the median income is 4.8 percent and 5.9 percent lower, respectively. In fact, reports suggest that the median income of Canada is now higher than that of the United States, and western European countries are slowly closing the gap.Learn more about Financial Calculations