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Thread: The Shrinking Middle Class- Where Did They Go?

  1. #1

    The Shrinking Middle Class- Where Did They Go?

    If you aren't in the middle you either go up or you go down.

    http://www.aei.org/publication/yes-t...afford-a-home/

    Middle-Class Shrinkage. If the middle class is shrinking, where are they going? There are only two places/directions they can go: Up or Down. And in fact, the middle class really is shrinking, but itís because so many US households are moving up to higher income groups, not down to lower-income groups, as the chart below shows



    Over a slightly longer time period (1967 to 2016) and using a slightly different income measure of middle-class income ($35,000 to $100,000 in 2016 dollars from Census Bureau data) itís true that the share of US middle-class households has been declining, from 53.2% of US households in 1967 to 42.1% in 2016, see left side of the graphic above. But where did the shrinking middle-class US households go? As the right side of the graphic above shows, the shrinking middle-class moved up into the group of American households earning $100,000 or more (in 2016 dollars). In 1969, only 8.1% (slightly less than one out of 12) of US households earned $100,000 or more, but by 2016, 27.7% (more than one out of 4) of US households were in that high-income category. At the same time, the share of low-income US households earning $35,000 or less decreased from 38.7% in 1969 to 30.2% in 2016. Stated differently, the 19.6 percentage point increase in the share of high-income US household between 1969 and 2016 (from 8.1% to 27.7%) was a result of: a) an 11.1 percentage point shrinkage in the share of middle-class households (from 53.2% to 42.1%), and b) an 8.5 percentage point shrinkage in the share of low-income households.

    Bottom Line: There has been a shrinkage of Americaís middle class over time (by either measure above), but itís not a story of economic gloom and doom, characterized by a ďwidening gap between what Americans earn and the housing they can affordĒ but rather a positive story of economic prosperity and upward mobility that has gradually but consistently lifted millions of lower-income and middle-income US households into higher income groups over time. The fact that nearly 28% of US households annually earn $100,000 or more runs counter to the widespread narrative of an American middle-class in decline and deserves much greater attention as evidence of a dynamic and prosperous America with significant income mobility.
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.



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  3. #2
    Meanwhile inflation pushes everyone but the very rich farther down.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankindÖitís people I canít stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  4. #3
    Quote Originally Posted by Swordsmyth View Post
    Meanwhile inflation pushes everyone but the very rich farther down.
    Chart adjusted for inflation.
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.

  5. #4
    Quote Originally Posted by Zippyjuan View Post
    Chart adjusted for inflation.
    For official inflation numbers which are manipulated and which have been more manipulated as time goes by.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankindÖitís people I canít stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  6. #5
    Quote Originally Posted by Swordsmyth View Post
    For official inflation numbers which are manipulated and which have been more manipulated as time goes by.
    Share the real numbers with us. Or just posting guideline phrases when you have no evidence?
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.

  7. #6
    Quote Originally Posted by Zippyjuan View Post
    Share the real numbers with us. Or just posting guideline phrases when you have no evidence?
    LOL

    You've been educated on this many times, I'm not going to do it again.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankindÖitís people I canít stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  8. #7
    That is some impressive date you shared. You have convinced me completely! (the Internet Guidebook does not include any data or facts to share in replies to posts- facts just get in the way and may contradict the point attempting to be made- it is better to stick to your key phrases).
    Last edited by Zippyjuan; 05-06-2019 at 06:56 PM.
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.

  9. #8
    Quote Originally Posted by Zippyjuan View Post
    Chart adjusted for inflation.
    By who? You? Way to Smoke & Mirrors Captain Federal Reserve Cheerleader!
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.



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  11. #9
    Quote Originally Posted by Swordsmyth View Post
    Meanwhile inflation pushes everyone but the very rich farther down.
    That has been modest too and could escalate some time .
    Do something Danke

  12. #10
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.



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