Unprecedented Drop in Incomes "Not Surprising"

The always-edifying David Cay Johnston writes about the latest income data from IRS: Americans earned a smaller average income in 2005 than in 2000, the fifth consecutive year that they had to make ends meet with less money than at the peak of the last economic expansion, new government data shows. And after years of touting a fantabulousness of the economy, the White House reacts by saying that the new data "should not surprise anyone" because "the significant wrenching hits that our economy took in 2001 and 2002, so no one should be surprised that what a bubble economy created in the late 1990s and 2000, where economic data were skewed, would take some time to recover." Uh, dude: Total income listed on tax returns grew every year after World War II, with a single one-year exception, until 2001, making the five-year period of lower average incomes and four years of lower total incomes a new experience for the majority of Americans born since 1945.
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