INCOME LEVELS, SPENDING CHOICES, & QUALITY OF LIFE·UNITED STATES 1978-1997
This research examines the relationships between income levels, consumer spending choices, and quality of line in the United States for the 20-year period 1978-1997. Income levels are defined for purposes of this research as per capita income as reported by the United States Department of Commerce. Consumer spending choices are considered within the contexts of retail sales, durable goods sales, consumer spending on health care, and housing (Nissan, 1994). Quality of life is considered within the contexts of all criminal offenses, violent criminal offenses, bankruptcies, inflation, and formal educational attainment (Kacapyr, 1997).
Per Capita Income in the United States: 1978-1997
Per capita income may be considered in terms of either current dollars or constant dollars. When per capita income is considered within the context of constant dollars, current dollar income levels are adjusted for the effects of inflation (Johnston, 1996). From 1978 through 1997, per capita income in current dollars in the United States increased from $9,640 to $25,312, an increase of 162.6 percent over the 20-year period. When these income levels are adjusted for inflation (using 1992 as the base year), however, per capita income stated in constant dollars increased from $17,995 in 1978 to $22,350 in 1997, an increase of only 25.6 percent over the 20-year period.
A comparison of per capita income stated in current dollars and constant dollars is presented in Chart 1, which may be found below on this page. As the chart indicates, per capita income in the United States from 1978 through 1997 was much more stable considered in the constant dollar context than when considered in the current dollar context. For this reason, per capita income stated in constant dollars is used for comparative purposes in the remainder of this examination.
Source: Economics and Stati...