Saturday, February 8, 2014

The Middle Class is shrinking, but for the right reason.

The middle class has been shrinking because they're becoming richer, not poorer as many people would have you believe. 


-"The share of “middle-income” US households annually earning between $50,000 and $100,000 in constant dollars has remained relatively stable over the last 40 years at about 30%." [1]

-"At the same time, the share of low-income households earning less than $50,000 has decreased by 13.50 percentage points from 63.6% to 50.1% from 1969 to 2009, while the share of high-income households earning more than $100,000 has increased by 14 percentage points from 6.1% to 20.1% over that period." [1]

- "middle-class households earning $50,000 to $100,000 have remained a fairly constant share of all US households over time, while there has been a significant increase in the share of high-income households that offset the decline in the share of low-income households." [1]

-Family size has shrunken over time, meaning that the average family now has more money and less people to feed.



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