"U.S. Census report tells Tennesseans what they already know: Their dollar isn't stretching as far as it used to."

Ya think?

Tenn. families feel economy's bite

Census shows average household makes less than 7 years ago

By JENNIFER BROOKS • Staff Writer • August 27, 2008

The latest U.S. Census report tells Tennesseans what they already know: Their dollar isn't stretching as far as it used to.

Thanks to rising inflation, Tennessee families earned less in real income last year than they did in 2005, or even 2001. Meanwhile, the number of uninsured Tennesseans is on the rise, and almost 15 percent of the state lives in poverty.

That was the gloomy news from the U.S. Census Bureau's new report on poverty and household income. While the rest of the country saw a slight improvement in median household income and a slight reduction in the ranks of the uninsured, Tennesseans still have hard times ahead.

"It's pretty easy to notice that the economy's bad," said Don Herston, shopping for hot peppers at the Nashville Farmers Market on Tuesday with his wife, Ima. "A gallon of gas costs you $4, a gallon of milk costs you $4. We're on a fixed income. It's not easy."

The median household income in Tennessee last year was $41,195 — the ninth-lowest income rate in a country where the national median is more than $50,000. By contrast, the state's median household income in inflation-adjusted dollars was $41,853 in 2005 and $42,678 in 2002.

Tennessee's poverty rate actually declined slightly over the past two years from 15.4 percent to 14.8 percent. An additional 14.4 percent of Tennesseans lived without health coverage in 2007.

A spokeswoman for Tennessee Gov. Phil Bredesen declined to comment on the census data. But both major party presidential candidates weighed in on the census news.

"Today's announcement reminds us that Americans are suffering in a struggling economy," Republican candidate John McCain said in a statement Tuesday. "Too many of our neighbors are living in poverty, too many can't find a job, and too many are living without health insurance."

Democratic candidate Barack Obama said the economic data indicate "that over the past seven years our economy has moved backwards."

"We have now lived through the first so-called economic 'expansion' on record where typical families saw their incomes fall, and working-age households lost more than $2,000 from their paychecks. Another 816,000 Americans fell into poverty," Obama said in a statement.

County data vary widely

Ordinary Tennesseans feel the pinch, and are making do. Despite the lousy economy, and even lousier weather, Nashville resident Michael Millican started a business this week, selling hot dogs out of a cart on a downtown corner of Church Street. Millican and The Big Weiner cart offer downtown workers and visitors a cheap alternative to restaurant fare.

"I can't make you a $10 salad, but …," Millican gestured to the $3 bratwurst sizzling on his grill as rain pattered on the rainbow umbrella over his cart. The economy may be bad, but the tips are still good. "I think, really, since the food's so inexpensive, people can afford to be generous. They'll give you a $1 tip on a $4 meal."

At the Nashville Farmers Market, vendors have noticed a spike in sales as more and more people opt to stay home and cook, rather than go out to eat, market Director Jeff Themm said.

"It's been surprising. From what the vendors tell me, sales seem to be up," he said.

Ronnie Mayo of Hermitage loaded a bag with fresh ears of corn and acknowledged that the economy, rising inflation and rising prices have forced him to think twice about things like what he buys and where he goes.

"I notice it all the time, at the gas pump, in my normal household expenses, groceries and stuff," Mayo said. "We're not traveling much anymore."

The census data showed a surprising difference in real household income among Middle Tennessee counties.

Davidson and Rutherford counties' median incomes actually rose over the past two years, even adjusting for inflation.

But Sumner County's real income declined 7 percent, and even tony Williamson County — where the median income is almost double the state average — saw a 2 percent decline.

Brentwood resident Deborah Arnold said she has reduced her travel since the price of gas and everything else began rising.

"Everything is going up. People's salaries aren't keeping up with the cost. It seems to be a general malady," she said.

Contact Jennifer Brooks at 615-259-8892 or jabrooks@tennessean.com.