If you think 5% to be an insignificant figure, I ask you to ponder the effects of the latest news out of Washington.
According to the latest Census Bureau data, a 5% increase can mean the greatest single year increase in median household income since record-keeping began in 1967. You read that right. Median household income in the United States rose from $53,718 in 2014 to $56,516 in 2015. A 5.2% increase in inflation adjusted dollars.
Can we expect a 5% increase every year going forward? I’m not an economist, but I will go out on a limb and say that’s unlikely. My point is to reiterate the power that even a one-time 5% increase can yield; the largest economic gain in a generation over a one year period.
The power of this 5% increase could have national political implications in the current election cycle as well. One side of the ticket has continuously tried to paint a doom and gloom scenario stemming from current economic policies. This 5% hike could very well shine a light on that dark picture for a lot of voters whose confidence has been shaken for the last 8 years.
It’s been a long road of recovery since the great recession began. But, slowly and surely, it appears the economic expansion has finally begun to take hold. Would some like it to come quicker than it has? Of course. Many thought it would change for the better overnight after the administration change in 2008. Like I say in my book, small changes yield big results. I’m a believer in setting big goals. But I’m also a realist and believe in setting micro goals to baby step your way to achieving that ultimate goal.