real income

American  

[ree-uhl, reel] / ˈri əl, ril /

noun

1. the amount of goods and services that money income will buy.

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real income Cultural  

1. Income measured in terms of the goods and services it can buy.

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Etymology

Origin of real income

First recorded in 1925–30

Example Sentences

“But at the same time, the U.S. consumer is well positioned to absorb the real income hit from higher gas/energy prices, and AI capex trends show no signs of slowing down.”

From Barron's • Apr. 13, 2026

“On Jan. 1, working Americans will reset their withholding levels, and they will have substantial real income increases,” Bessent said.

From MarketWatch • Nov. 21, 2025

Then there is what economists call the precautionary motive: the money put to one side by those worried about losing their job or suffering a fall in real income as prices surge.

From The Wall Street Journal • Nov. 10, 2025

"However, softer earnings growth, higher inflation, tighter fiscal policy, and the lagged impact of past interest rate rises for some mortgagors point to much weaker real income growth moving forward."

From BBC • Sep. 5, 2025

The basic ideas are: �         Home maintenance produces a product, this product is real income, and income should be taxed.

From Definition & Reality in the General Theory of Political Economy by Colignatus, Thomas