You forgot a crucial figure. Basically, average hourly incomes are dropping. Inflation has eaten away more than the rate they are climbing. Gas going down helps alot. But for lower skill folks, those making less than $14.00 an hour, they are doing alot worse lately because of inflation. A 2.5% raise when inflation is 3.1% really doesn't make you feel that special. But when you consider that more than 50% of Americans make less than $14.00 an hour, that is where the angst is coming from. If you are educated, in a good field, the economy is perking right back up.
Source please. $14 an hour equates to $29K a year. Also, houshold income is more relevant. According to the census bureau, real median household income remained unchanged between 2003 and 2004 at $44,389, according to a report released today by the U.S. Census Bureau.
Nationally, 2005 marked the first year since 1999 in which real median household income showed an annual increase. Black households had the lowest median income in 2005 ($30,858) among race groups. Asian households had the highest median income ($61,094). The median income for non-Hispanic white households was $50,784. Median income for Hispanic households was $35,967.