Something isn't adding up. Hmm. Averagee expenses vs income. Very fishy...

[S2007S]

The Average American's Household Expenses Are $6,081 A Month Or $72,967 A Year — But The Median Annual Household Income Is Just $74,580


Something just doesn't seem right. Where are consumers finding money to spend, I see that credit card debts are at 1 trillion,, making that the highest in history...and most probably paying off credit card debts at an 18-24% APR


With gdp recently showing strong results at 3.3% and consumer spending making up for 70% of gdp where oh where are they getting money to spend. Does the consumer ever get tapped out ....





https://finance.yahoo.com/news/average-americans-household-expenses-6-180012555.html

 

[maxinger]

The Average American's Household Expenses Are $6,081 A Month Or $72,967 A Year — But The Median Annual Household Income Is Just $74,580


Something just doesn't seem right. Where are consumers finding money to spend, I see that credit card debts are at 1 trillion,, making that the highest in history...and most probably paying off credit card debts at an 18-24% APR


With gdp recently showing strong results at 3.3% and consumer spending making up for 70% of gdp where oh where are they getting money to spend. Does the consumer ever get tapped out ....





https://finance.yahoo.com/news/average-americans-household-expenses-6-180012555.html

If the answer is not in the report,
then most likely the report is written by a newbie small kid.
Give him time and he will improve his writing skills.

 

[Real Money]

Pointless to compare average expense to median income. Income and expenses are skewed right.

 

[tomorton]

Average income is meangless. Median income is the one which tells you something useful as a comparison to others - the median income is the level with 50% of the population above and 50% of the population below.

 

[S2007S]

Average income is meangless. Median income is the one which tells you something useful as a comparison to others - the median income is the level with 50% of the population above and 50% of the population below.

Average was on the EXPENSE side not income....

 

[S2007S]

$74,580
Highlights. Real median household income was $74,580 in 2022, a 2.3 percent decline from the 2021 estimate of $76,330 (Figure 1 and Table A-1).Sep 12, 2023

 

[S2007S]

Pointless to compare average expense to median income. Income and expenses are skewed right.

Skewed by the government or just in general???

 

[tomorton]

Average was on the EXPENSE side not income....

Same principle - comparing averages with medians is ignorant. Average and median incomes are readily available statistics, but I have never even seem median expenses expressed.

 

[S2007S]

Same principle - comparing averages with medians is ignorant. Average and median incomes are readily available statistics, but I have never even seem median expenses expressed.

So basically the entire article is garbage....not even worth comparing and contrasting such figures

 

[Snuskpelle]

Comparing avg and medians for values depending on wealth in the US is meaningless indeed. An example of why:

The skew is massive. The chart I managed to find with a 1 min search is for equity ownership, but charts for income and expenses would look quite similar. So the averages are pumped up whereas the median is way below.

Also it's a useful reminder for Americans that roughly speaking, 1% of them own half of society, whereas the other half is owned by another 9% of them. Why the remaining 90% put up with this is beyond me.