Components of Income

As yesterday's second graph showed, even with interest and dividends added in, wages and salaries were declining since about 1970. So now I want to look at all the main categories of Personal Income:

Graph #1: The Major Components of Personal Income

1 Personal income

2 Compensation of employees, received

3 Wage and salary disbursements

4 Private industries
5 Government

6 Supplements to wages and salaries

7 Employer contributions for employee pension and insurance funds
8 Employer contributions for government social insurance

9 Proprietors' income with inventory valuation and capital consumption adjustments

10 Farm
11 Nonfarm

12 Rental income of persons with capital consumption adjustment
13 Personal income receipts on assets

14 Personal interest income
15 Personal dividend income

16 Personal current transfer receipts

17 Government social benefits to persons

18 Social security
19 Medicare
20 Medicaid
21 Unemployment insurance
22 Veterans' benefits
23 Other

24 Other current transfer receipts, from business (net)

25 Less: Contributions for government social insurance, domestic

I thought I was on to something yesterday, with interest increasing so much as a share of Personal Income. But even with interest added to wages and salaries, the total declined as a share of PI. Something else must have been increasing, enough to make up the difference.

On today's graph the green line (interest and dividends) shows a long-term increase. And so does the purple line -- transfers. I want to look at transfers next.