US economy notches remarkable new record, sparking cheers: 'Good job everyone'

Americans may not feel it in their wallets, but two major measures of economic well-being improved in 2025, as the nation's poverty rate fell to a historic low and inflation-adjusted median household income reached a record high, according to new Census Bureau data.

The Census Bureau defines poverty depending on the number of people in a given household and their income. A family with two adults and two children, for instance, would need to make less than $32,649 a year to be considered impoverished. The threshold for poverty increases as inflation lowers the value of the dollar.

Median household income also reached an all-time high, growing by 2.6% to $87,460 in 2025. That gain, however, is erased by inflation as the dollar's value declined by about 3% between 2024 and 2025.

A number of factors could explain the gap between economic perception and improving macroeconomic indicators.

Conservatives on social media have used the Census Bureau's data to take a victory lap.

The number of people without health insurance also remained near historic lows, according to the Census Bureau.

Some on the left, however, deny that poverty rates are actually declining.