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American Abundance Index Dashboard
American Abundance Index
All Private-Sector Workers
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American Abundance Index:
All Private-Sector Workers
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Monthly Change
Time Price:
All Private-Sector Workers
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Monthly Change
Average Hourly Earnings:
All Private-Sector Workers
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Monthly Change
Consumer Price Index (CPI)
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Monthly Change
Key Insight
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American Abundance Growth Chart
Bar chart showing changes in Abundance, Time Price, Hourly Earnings of all private-sector workers, and CPI, across 5 time periods (select below).
*The BLS data starts in March 2006
*The BLS data starts in March 2006
*The BLS data starts in March 2006
*The BLS data starts in March 2006
What This Means for Your Paycheck:
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Abundance Index Over Time
Percentage change over time in Abundance, Time Price, Hourly Earnings, and CPI.
Since Tracking Began
Abundance
for Private-Sector Workers
Has Increased by
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12-Month Rolling Average Growth
This chart shows the 12-month rolling average growth rate of Hourly Earnings and CPI. When Average Hourly Earnings grow faster than CPI, Abundance rises.
Absolute Values
Relative to CPI
Methodology
Understanding how we calculate the American Abundance Index and Time Price metrics.
Data Sources
We use official data from the U.S. Bureau of Labor Statistics (BLS): the Consumer Price Index (CPI) to measure inflation and Average Hourly Earnings to measure hourly earnings growth across worker categories.
American Abundance Index Calculation
The American Abundance Index (AAI) is calculated by dividing an index of Average Hourly Earnings for U.S. private-sector workers by an index of the Consumer Price Index (CPI). The AAI begins in March 2006, when BLS data on average hourly earnings for all private-sector workers became available. An AAI value above 0 indicates that hourly earnings are growing faster than prices, signaling rising Abundance.
Time Price Methodology
The Time Price is calculated by dividing the CPI index by the Average Hourly Earnings index. It shows how much time is needed to buy a standard BLS basket of goods and services. When Time Prices fall, Abundance rises.
Worker Group Classifications
We analyze worker groups using BLS classifications. All private-sector employees include all private-sector employees excluding government employees, while blue-collar refers to production and nonsupervisory employees in goods-producing industries.
Data Frequency & Updates
All data are updated monthly following BLS releases, typically in the middle of each month. We track month-over-month, year-over-year, five-year, ten-year, and since–March 2006 changes in hourly earnings and inflation to capture both short-term movements and long-term trends.
Limitations & Considerations
Our analysis focuses on averages and may not reflect individual experiences. Results are most meaningful over longer periods rather than in a single month. In rare cases when BLS data are missing (for example, inflation data for October 2025), we interpolate the missing values. If the BLS delays a release, we postpone updating the indexes until the data become available.
Understanding Upskilling Scenarios
The upskilling metrics model how workers’ hourly earnings change as they gain skills over the course of their careers. For example, someone might start as an entry-level food service worker earning $15 per hour, then move to shift supervisor, assistant manager, and eventually general manager, with each step paying more. Our upskilling calculations simulate this path using an average that starts at entry-level food service hourly earnings and gradually shifts toward either average all private-sector hourly earnings or average production and nonsupervisory employees in goods-producing industries (blue-collar) hourly earnings over the period since March 2006. That reflects a basic reality: workers do not stay in the same job forever. As they gain experience and skills, they often move into higher-paying roles, compounding the gains when hourly earnings growth outpaces prices.
About This Research
This project builds on the concept of Time Prices developed by economist and Cato Institute adjunct scholar Dr. Gale L. Pooley and Cato Institute senior fellow Dr. Marian L. Tupy. Time prices provide an intuitive measure of changes in living standards by showing how much work time it takes to buy goods and services. Tracking that work time over time offers a clearer picture of economic well-being than looking at prices or hourly earnings alone.
For media inquiries, please contact us here or call: 202-842-0200.
Replicate This Research
To replicate this research, visit our GitHub repository where you can download the most recent American Abundance Index dataset, access the code we use for data processing and visualization, and read detailed documentation about our methodology.