The median money income of households in the United States rose to $11,100 in 1974, an increase of about 6 percent over the 1973 median of $10,500. However, this increase was eroded by rising prices which resulted in a net loss in real purchasing power. After adjusting for the 11 percent rise in prices between 1973 and 1974,1 the 1974 median in terms of constant dollars decreased by about 5 percent below the 1973 median.
Aggregate household money income increased 8 percent between 1973 and 1974 resulting from a 2 percent increase in the number of households (1.3 million additional households) and a 6 percent increase in the average (mean) household money income. Aggregate household money income in constant 1974 dollars was down 3 percent in 1974 compared with 1973.
Of the 71.1 million households in the United States, 6.8 million had incomes of $25,000 or more. These households, which constitute 10 percent of all households, received about 26 percent of aggregate money income in 1974. Another 16.8 million households (24 percent) had incomes between $15,000 and $25,000 and received 35 percent of the total income. At the other end of the scale, 15.0 million households (21 percent) had incomes under $5,000 and received about 5 percent of the total income.
1 The percentage increase in prices between 1973 and 1974 is computed by dividing the annual average Consumer Price Index (CPI) for 1974 by the annual average value of the Index for 1973.
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