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The Tipping Point: Most Americans No Longer Are Middle Class
"Americans have long lived in a nation made up primarily of middle-class families, neither rich nor poor, but comfortable enough.
This year, that changed, according to the Pew Research Center.
A just-released analysis of government data shows that as of 2015, middle-income households have become the minority. The trend is so firmly established that it may well continue; Americans have experienced "a demographic shift that could signal a tipping point," Pew researchers concluded Wednesday."
"The hollowing of the middle has proceeded steadily for the past four decades,Pew concluded."
Hi @Old_Joe Read a similar article earlier today. To note: 'Course we older folks with the longer time line know all too well about inflation, whether raging or creeping....... For the link below I set the year for 1970 and $1 for a value and the calculation for current equivalent cost through Oct. 2015 = $6.13. The cumulative inflation rate = 513%. I'm not sure how Pew calculated median income growth of +34% since 1970, but likely that middle class income has not kept pace with inflation. Many more households now have dual incomes, versus prior years; as well as households with only one parent, one income. I shake my head when I see the current tv commercial for a Ford truck with a $10,000 price savings............OMG, $10k would buy 3 very nice cars in 1970. Last side note: When I was a young punk kid working the small grocery store thing, I still recall using a "Garvey" ink price stamper on boxes of Cheerios at $.35. Other than this, there isn't much inflation, eh???
This has been going on since the late 70's or 80's and will continue for awhile. It isn't surprising considering that wages have been flat since then also.
Then add in the loss of define pensions and health benefits.
If anyone here didn't know this has been going on it just means they are insensitive to the plight of the middle class and poor in this country.
For the link below I set the year for 1970 and $1 for a value and the calculation for current equivalent cost through Oct. 2015 = $6.13. The cumulative inflation rate = 513%.
Compute it for college education. It is astounding.
Ha.........well aware of college costs at this house.
Here is an excellent site I have used and posted previous at FundAlarm and here. Lots of data..........plug in a state (list by state) or university name for a specific find. Very interesting stuff indeed.
It's been going on for quite a while - the extermination of the middle class, if you will.
Here in Michigan, Ballard states we hit our mfg peak in 1973. That might be somewhere around middle class peak growth. That's about when the wagers and benefits peaked in the private sector here. The public sector peaked later, but both have been rolled way back. As a state worker, they started reducing our benefits in the early '80's. They switched from DB to DC pensions around 20 years ago.
The middle class was a function of either an mfg job or an education. Most of the former have been exported or made technologically obsolete. The latter has been hideously expensive leading to insane school debts. This in turn has been a drag on aggregate demand by postponing major purchases by recent graduates even after they've found a good job - no new car, no house, etc.
Earlier Pew study also noted how the distribution of wealth had become the most skewed since Jamestown.
Comments
Read a similar article earlier today.
To note: 'Course we older folks with the longer time line know all too well about inflation, whether raging or creeping.......
For the link below I set the year for 1970 and $1 for a value and the calculation for current equivalent cost through Oct. 2015 = $6.13. The cumulative inflation rate = 513%.
I'm not sure how Pew calculated median income growth of +34% since 1970, but likely that middle class income has not kept pace with inflation. Many more households now have dual incomes, versus prior years; as well as households with only one parent, one income.
I shake my head when I see the current tv commercial for a Ford truck with a $10,000 price savings............OMG, $10k would buy 3 very nice cars in 1970. Last side note: When I was a young punk kid working the small grocery store thing, I still recall using a "Garvey" ink price stamper on boxes of Cheerios at $.35. Other than this, there isn't much inflation, eh???
http://www.coinnews.net/tools/cpi-inflation-calculator/
Scroll down the link for use and other data.
Yup, it is different this time and repeat for each new year. Don't care what some economists write or utter.
Regards,
Catch
Then add in the loss of define pensions and health benefits.
If anyone here didn't know this has been going on it just means they are insensitive to the plight of the middle class and poor in this country.
Ha.........well aware of college costs at this house.
Here is an excellent site I have used and posted previous at FundAlarm and here.
Lots of data..........plug in a state (list by state) or university name for a specific find.
Very interesting stuff indeed.
http://nces.ed.gov/collegenavigator/
It's been going on for quite a while - the extermination of the middle class, if you will.
Here in Michigan, Ballard states we hit our mfg peak in 1973. That might be somewhere around middle class peak growth. That's about when the wagers and benefits peaked in the private sector here. The public sector peaked later, but both have been rolled way back. As a state worker, they started reducing our benefits in the early '80's. They switched from DB to DC pensions around 20 years ago.
The middle class was a function of either an mfg job or an education. Most of the former have been exported or made technologically obsolete. The latter has been hideously expensive leading to insane school debts. This in turn has been a drag on aggregate demand by postponing major purchases by recent graduates even after they've found a good job - no new car, no house, etc.
Earlier Pew study also noted how the distribution of wealth had become the most skewed since Jamestown.
and so it goes,
peace,
rono
Regards,
Ted
http://www.bloomberg.com/news/articles/2015-12-10/here-s-how-much-the-u-s-middle-class-has-changed-in-45-years