Trump Effect? Household Income Hits 15-Year High

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For eight years, President Obama endlessly talked about "middle class" economics. All the while, middle-class family incomes were stagnant. Now they are on the rise. Could Trumponomics be the reason?

In April, real median household income reached $59,361, according to the latest report from Sentier Research. That's up 2% since January, and is as high as it's been since February 2002. Expressed as an index, median household income was 100.9 in April, which is the first time this index has topped 100 since December 2008.

By comparison, this index was also lower when Obama left office than when he came in — it stood at 99.2 in January 2009, and was 98.9 in January 2017. It was just 1.7% higher than when the recession ended in June 2009. Last year, incomes barely budged, Sentier data show.

Another way to look at it: median income has climbed faster in President Trump's first three months in office than it did during 7-1/2 years of Obama's economic "recovery."

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Well, we know that Trump's presidency, and the promise of a sharp turn away from the growth-suffocating policies of the past eight years, led to an immediate surge in optimism among businesses and consumers. It's possible that this has made businesses more willing to hire workers, and pay them more, than they otherwise would have. Plus, the stock market has responded with gusto to Trump.

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