Wealth Distribution in the US – Why it Matters — Mean Family Income, 1994 to 2024

This EPIGraph focuses on income distribution in the US between 1994 and 2024 (adjusted for 2024 dollars; e.g., "inflation adjusted" or "constant" dollars). These data represent mean family income (MFI).

What the graphic clearly illustrates is that the greatest growth decade-by-decade is at the upper income levels. While all groups increased their relative income versus CPI, those at the top rungs saw much higher growth. For instance, MFI for the top 5 percent increased 60 percent in the past 30 years, compared to 58 percent for the top quintile and 33 percent for the bottom quintile.

Don't let the percentages fool you. When we focus on actual dollar amounts, the top 5 percent increased their MFI by $234,100 during this period compared to $6,780 for the bottom quintile. Put another way, the top 5 percent saw their income increase 34 times that of the bottom quartile. The top 20 percent saw their income increase four times that of the middle quartile.

This translates primarily as an increase in disposable income for the affluent while the bottom 2/3 have barely kept pace with inflationary pressures, let alone large cost centers such as health insurance and higher education.

These data are important to consider when talking about postsecondary access and affordability. Regardless of student aid, the other financial pressures that have a much greater impact on the less affluent matter greatly in terms of whether people plan for college, if they go to college, where they go to college, and if they finish college. All because money matters greatly in terms of these issues.