The Century of Income

The Bureau of Economic Analysis has tracked personal income in every state since 1929 — giving us a 95-year window into how Americans earn their money. Total personal income grew from $85 billion to $24.9 trillion. The population grew from 122 million to 340 million. But per capita income tells the cleanest story: $699 to $73,204, a 105-fold increase in nominal terms.

This is not one smooth upward line. It is a story of catastrophe, recovery, boom, stagnation, and acceleration — with every major economic event of the past century visible in the data.

The chart reveals five distinct eras in American income history:

The Great Depression (1929–1933). Per capita income fell from $699 to $375 — a 46% decline in four years. This remains the most devastating income shock in American history. It took until 1940 to merely return to the 1929 level ($600), and the true recovery didn’t come until the war economy kicked in.

The War and Postwar Boom (1941–1973). Income doubled during WWII alone ($730 in 1941 to $1,261 in 1945) as wartime production put everyone to work. The postwar expansion was even more remarkable: from $1,533 in 1950 to $5,363 in 1973 — a 3.5x increase in 23 years. This was the golden age of American income growth, powered by manufacturing, suburbanization, and rising unionization.

Stagflation and Adjustment (1973–1982). The oil shocks and inflation of the 1970s muddled the picture. Nominal income nearly doubled ($5,363 to $10,184) but much of that was inflation eating into purchasing power. Real income growth stalled during this decade — a shock after 30 years of steady gains.

The Long Expansion (1982–2019). From Reagan to Trump, per capita income rose from $11,990 to $55,567 — a 4.6x increase over 37 years. The 1990s tech boom ($19,619 to $30,551) was particularly strong, and the 2010s expansion ($40,557 to $55,567) was the longest in history. Two recessions (2001, 2008) caused only brief dips.

The COVID Anomaly (2020–present). Per capita income jumped from $55,567 (2019) to $59,151 (2020) — a $3,584 increase during a pandemic. This counterintuitive result came from $4.2 trillion in government transfer payments (stimulus checks, enhanced unemployment, PPP loans). Income then surged further to $64,692 in 2021 before settling into a $66,000–$73,000 range as transfers normalized.

The pace of income growth has accelerated dramatically — at least in nominal terms. It took 51 years (1929–1980) to reach the first $10,000 in per capita income. The second $10,000 took 10 years (1980–1990). The third took 7 years. Each subsequent $10,000 milestone has arrived faster than the last.

From $60,000 to $70,000 took just 3 years (2021–2024). Much of this acceleration reflects inflation rather than real gains. But even in inflation-adjusted terms, the American standard of living has roughly quintupled since 1929. The average person today consumes more food, energy, healthcare, entertainment, and technology than their great-grandparents could have imagined.

Total personal income crossed major thresholds with similar acceleration: the first $1 trillion in 1970 (41 years after 1929), $5 trillion in 1990 (20 years later), $10 trillion in 2005 (15 years), and $20 trillion in 2020 (just 15 more years). At $24.9 trillion in 2024, total personal income is on pace to reach $25 trillion — equivalent to the GDP of the largest national economy in the world.