2020 has been a year of unprecedented economic upheaval, with the coronavirus pandemic causing massive job losses and economic disruption. However, despite the economic turmoil, there has been one bright spot: gross income has increased significantly.
According to the Bureau of Labor Statistics, the median weekly earnings of full-time wage and salary workers increased by 8.2 percent in 2020, from $936 in 2019 to $1,011 in 2020. This is the largest year-over-year increase since the Great Recession of 2008-2009.
The increase in gross income is largely due to the federal government’s response to the pandemic. The CARES Act, which was passed in March 2020, provided an additional $600 per week in unemployment benefits to those who were laid off or had their hours reduced due to the pandemic. This additional income helped to offset the losses in wages and salaries, resulting in an overall increase in gross income.
In addition, the CARES Act also provided stimulus payments of up to $1,200 per person, which further boosted incomes. This money was used to pay bills, buy groceries, and cover other essential expenses, which helped to keep people afloat during the pandemic.
The increase in gross income is also due to the fact that many people have been able to find new jobs or increase their hours in 2020. With the economy slowly reopening, businesses have been able to hire more workers, and those who were already employed have been able to increase their hours. This has resulted in an overall increase in wages and salaries, which has contributed to the increase in gross income.
Finally, the increase in gross income is also due to the fact that many people have been able to take advantage of the stock market’s strong performance in 2020. With the S&P 500 up more than 15 percent for the year, many people have seen their investments increase in value, resulting in an increase in their gross income.
Overall, 2020 has been a difficult year for many people, but the increase in gross income is a positive sign that the economy is slowly recovering. With the vaccine rollout underway and the economy slowly reopening, it is likely that gross income will continue to increase in 2021.