The big picture, as we begin the year 2012

The New Year is nearly here — the ideal time to reflect on the year that is drawing to a close. Looking back on 2011, it is the state of the economy that looms large in retrospect, and how the financial system has affected the lifestyle of Americans on a daily basis. To compute the figures, and to really understand what our dollars have gained us in recent years, we turn to a money chart from www.xkcd.com, which was published online in November of this year and can be fact checked through sources including scholarly works or government publications (at https://xkcd.com/980/sources/).So what does this money chart tell us? Well, for one, the median household income, after taxes, is $39,170. That’s certainly not enough for a growing family to survive on in today’s world, by any means. It’s especially difficult for the majority, who earn less than $55,000 a year, while the elite 1 percent make six-digit-plus salaries to support families and very comfortable lifestyles. The total of all household incomes in the U.S. equaled to roughly $10.5 trillion this year. Here’s the breakdown: About 1 percent (about 1.6 million households) earns roughly $400,000 or more. Eight percent (9 million households) earn between $150,000 to $400,000 annually. Sixteen percent (18 million households) earn between $90,000 and $150,000 annually. Twenty-three percent (27 million households) earn between $55,000 and $90,000 annually. A whopping 50 percent (about 63 million households) earn less than $55,000 annually. (The required poverty line is listed at $22,350.)The majority is clearly in the bottom half, but it gets worse. According to xkcd.com, when it comes to state taxes, the poor get socked.“Unlike federal taxes, state taxes are regressive ­­— the poor pay a higher percentage of their income than the rich. This is because sales taxes, a large component of state revenues, fall disproportionately on the poor.”The website calculated that $642 billion was paid in state taxes in 2011, while $2.2 trillion was paid in federal taxes, (after deductions and tax credits).The typical household net worth, when adjusted for inflation to 2011 dollars, meanwhile, for those 34 years of age or younger, in 1984 compared to 2009, was $11,680 versus $3,710, respectively. For those aged 35 to 44 years old the difference between 1984 and 2009 was $72,090 versus $40,140, respectively.Here’s more: The average individual health insurance annual premium is $5,430. The average annual amount a household spends on food is $5,650. The yearly cost of car ownership is $3,650. Annual tuition at a community college on average is $2,580; at an in-state university it’s $7,230. Treatment for cancer, including chemotherapy, costs $117,260.Here’s a real mind-bender: When adjusted for inflation to 2011 dollars, in 1965 a production worker’s average hourly wage was $19.61; in 2007 that wage had risen by 10 cents to $19.71. In 1965 the average CEO was paid for the same period roughly $490.31; by 2007 that CEO’s pay had jumped to $5,419.97. Those wages are not exactly on a parallel track.Here are some other facts: According to xkcd.com, the amount spent on U.S. foreign military aid was $11 billion, with $5.8 billion going to Afghanistan, $2.41 billion going to Israel, $1.32 billion going to Egypt and $5. 8 billion going to “other.” Another $11 billion in U.S. foreign humanitarian and economic aid was also spent, going to Iraq, Afghanistan, the West Bank, Gaza, Africa and “other.”Then there is the cost of war itself; the Korean War cost $341 billion; the Vietnam War cost $738 billion; the Persian Gulf War cost $102 billion; the War in Afghanistan cost $321 billion; and the Iraq War cost $784 billion. The government has a track record of heavy spending when it comes to military operations, but that fits in with this country’s global role as peace-keeper and protector of democracy. But that role comes at a price (not to mention the sacrifices made by those serving this great nation).What does all of this mean? Well, certainly it’s interesting data and information we can all take with us as we go about our daily lives and make decisions for our families and our communities. But it also gives us something more — it gives us perspective. It’s an amazing gift to be able to understand what’s going on in the world around you from as many different standpoints as possible. Having a comprehensive understanding of how this country operates, and where we stand as individuals in the larger picture, is important. If this has helped to do that in some way, then mission accomplished.