What changed around 1971?

Annual averages of official nonfarm-business productivity and real hourly compensation indexes, placed on the same 1971 = 100 scale.

By 2025, productivity reached 273.5 on the 1971 = 100 scale; real hourly compensation reached 171.5. This chart measures divergence, not a single cause.

Election.org averages each complete year of BLS quarterly index observations, then divides every year by its 1971 annual average and multiplies by 100.

Nominal hourly earnings for private production and nonsupervisory workers compared with consumer prices, with both series set to 100 in 1971.

From the same 1971 starting point of 100, hourly earnings reached 830.6 and consumer prices 774.9 in 2024. These are average hourly earnings, not median wages or total compensation including benefits.

Average each complete year of 12 monthly BLS observations, divide by its own 1971 annual average, and multiply by 100. Earnings and CPI are seasonally adjusted. Stop at the latest complete common year; years missing a month are not estimated. Changes in the mix of jobs can affect average earnings.

The BLS labor-share index shows compensation paid to workers relative to nonfarm business output, normalized to 1971.

The latest complete annual average is 86.6 on the 1971 = 100 scale.

Election.org averages each complete year of quarterly BLS labor-share index values, then rebases the annual series to 1971 = 100.

Manufacturing payroll jobs as a percentage of all nonfarm payroll jobs, using annual averages of the BLS monthly series.

Manufacturing accounted for 24.1% of nonfarm payroll jobs in 1971 and 8.0% in 2025. The decline in its share began before 1971. A falling employment share does not itself measure manufacturing output.

Divide the annual average of 12 seasonally adjusted monthly manufacturing payroll observations by the corresponding total nonfarm payroll average; multiply by 100. These are jobs, not unique workers.

New-house median sales prices and median family income in current dollars, rebased to the same 1971 starting point.

In 2024, the new-home price index was 1661.0 and family income was 1028.2, with both equal to 100 in 1971. The price series covers newly sold houses, not existing homes or rents.

Take the unweighted average of four quarterly Census/HUD new-house median sales prices and the annual Census nominal median family income. Rebase each to 1971 = 100. The mean of quarterly medians is not an annual sales median. Stop at the latest complete common year.

The average of quarterly new-house median prices divided by annual median family income. A price-to-income comparison, not a mortgage-payment estimate.

The comparison rose from 2.45 times annual family income in 1971 to 3.96 in 2024. It excludes interest rates, down payments, taxes, home size and regional differences.

Divide the unweighted average of four quarterly Census/HUD new-house median sales prices by Census median family income for that year. Both inputs are nominal dollars. This combines two population-level measures, not the income of the households that bought those homes.

The all-items consumer price index, averaged by year and placed on a 1971 = 100 scale.

The 2024 annual price index was 774.9 when the 1971 annual average is set to 100.

Election.org averages the 12 monthly seasonally adjusted CPI observations in each complete year and rebases the annual series to 1971 = 100.

Census Bureau median family income after adjustment for inflation, in chained 2024 dollars.

The latest published observation is $105,800 in chained 2024 dollars.

Election.org republishes the annual Census Bureau series distributed by FRED; no interpolation is applied.

The Census Bureau Gini index for U.S. families, where a larger number indicates a less equal distribution of income.

The published family-income Gini was 0.355 in 1971 and 0.456 in 2024. The zoomed vertical axis makes variation visible; switch to the full 0–1 scale for context. Survey changes affect long-run comparisons, including the marked 1993 break.

Election.org republishes the annual Census Bureau family-income Gini series distributed by FRED; no interpolation is applied. The 1993 survey change is marked explicitly. Census also documents other questionnaire, population-control and processing changes over this period.

M2 money stock and nominal GDP, each rebased to 1971 = 100 so their cumulative growth can be compared.

By 2025, M2 reached 3256.7 and nominal GDP 2640.9 on the 1971 = 100 scale. M2 is a stock of money; GDP is an annual flow of production. Their indexed growth is not an estimate of money causing inflation.

Average 12 monthly Federal Reserve M2 observations and four quarterly BEA nominal GDP observations per complete year. Rebase each annual average to its own 1971 value. Both are seasonally adjusted. Read the Federal Reserve's series notes for deposit-category changes in May 2020.

Exports minus imports of goods and services, as a percentage of the economy. Above zero is a surplus; below zero is a deficit.

The trade balance was 0.05% of GDP in 1971 and -3.01% in 2025. Follow the zero line to distinguish surpluses from deficits; the balance continued to fluctuate after 1971.

Divide the annual average of four quarterly BEA net-export observations by the corresponding nominal GDP average; multiply by 100. Both series are billions of current dollars at seasonally adjusted annual rates. This includes goods and services, not only merchandise trade.

Total federal public debt divided by gross domestic product, averaged across each complete year.

The latest complete annual average is 120.7% of GDP.

Election.org averages all four quarterly observations in each complete year of the Treasury and BEA ratio distributed by FRED.

The share of disposable personal income left after personal outlays, averaged across each complete year.

The latest complete annual average is 4.6% of disposable personal income.

Election.org averages all 12 monthly BEA personal-saving-rate observations in each complete year.