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GDP Growth vs. Your Paycheck: Why 3.4% Growth Doesn't Feel Like Prosperity

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The short answer: in the third quarter of 2026, the U.S. economy grew at a 3.4% annual rate, according to the Bureau of Economic Analysis — yet the average hour of work bought 0.7% less than it did a year earlier, and consumer sentiment sat at 48.0, the second-lowest reading ever recorded. Both numbers are real, and neither is wrong. GDP measures the total value of what the country produced. Your paycheck measures what you can buy. Those are different questions, answered by different math — and five structural differences explain most of the gap. 1. GDP is a total; your life is a median GDP adds up everything produced: every factory's output, every software license, every data center under construction. The Census Bureau's median household income — $87,460 in 2025, the highest on record going back to 1967 — measures the household sitting exactly in the middle. When gains concentrate at the top, the total grows faster than the middle. The 2025 income report shows how. Hous...

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