A Graph of Real Household Disposable Income

Shou-e and her colleagues at the IFS have created a graph which is really quite striking. It looks at real household disposable income over time. That's what people take home after tax and benefits adjusted for inflation. Between 1948 and 2007, average disposable household incomes were growing at about 2.4% a year on average. And then in 2008, you really see a break in that trend. So instead of carrying on the previous growth path, real disposable household incomes really just start leveling off and growing at a much slower rate of about 1%.