EFTA01205761.pdf

5 Charts That Show How the Middle Class Is Disappearing by Katie Rose Qua ndt: January 26, 201S Already the richest country in the world, the United States reached its highest cumulative wealth ever in 2013. It ranked fourth in the world in wealth per person, with $348,000 for every American adult. But the average American wouldn't know it. Thanks to economic policies that favor the super-rich and fuel inequality, the typical US adult's total wealth is $31,688 — not even close to $348,000. And things aren't poised to change: The median household brought in $51,939 in 2013, a real dollar increase of just $180 from 2012. This recent income stagnation came in the wake of a steep drop from 2007-2011 (mouse over the graph to see data): Median Household Income Remains Stagnant After falling sharpy from 2007.2011, incomes have yet to recover. 558.000 55.000 50.000 45.000 19/0 '75 '80 '85 '90 '95 '00 '05 2010 Source US Census Bureau Get the data Middle class Americans are feeling this income squeeze. One way to see how the middle class is faring is to break out the middle 60 percent of the population. The share of total national income going to this chunk of the population has decreased steadily since the 1960s and currently stands well below 50 percent: ilPage of 4 EFTA01205761  The Middle Class Is Getting a Smaller and Smaller Share The middle 60 percent of Americans used to earn over half the national income. They got 45.8 percent in 2013. 55.0% 50.0 45.0 40.0 1970 '75 '80 '85 '90 '95 '00 '05 2010 Source US Census Bureau Get the data As the middle class share dwindles, it's harder for typical Americans to put anything aside. Remember how the United States ranks fourth in the world in wealth per-person? When the same report ranked each country by its median wealth, the US dropped to #21. Which means middle-of-the pack Americans have far less to their names than middle-of-the pack Australians (or Japanese, or Canadians, or Spanish, or Austrians...) Fewer Americans Self-Identify as "Middle Class" In 2008. 53 percent of Amencans considered themselves 'Middle class In 2014. it was 44 percent • Identity as Lower/ Lower Middle Class ■ Identify as Middle Crass identity as Upper/ Upper Middle Class 80% 60 44 40 20 40 2008 2014 Everyday Americans are well aware they're being squeezed out of economic security. The percentage of Americans self-identifying as "middle class" has dropped significantly in recent years, while the percentage considering themselves "lower class" or "lower middle class" has risen: Wage of 4 EFTA01205762  Fewer Americans Self-Identify as "Middle Class" In 2008.53 percent of Americans considered themselves "middle class: In 2014. it was 44 percent ■ Identify as Lower/Lower Middle Class ■ Identify as Middle Class Identify as Upper/ Upper Middle Class 15 80% 60 40 20 40 2008 2014 The perception of slipping out of middle class comfort is based in fact. Some economists define the "middle class" as those Americans making within 50 percent of the median income (so in 2013, those making between $25,970 and $77,909.) As more and more income is redistributed upwards, the group fitting into this literal "middle class" actually shrunk from 56.5 percent of the population in 1979 to 45.1 in 2012. And, just a reminder of where all the money is going as the middle classes find themselves slipping into poverty: From 1979-2012, the 1 Percent's Incomes Grew by 181 Percent in the same period. the rest of the country saw an increase of just 2.6 percent. 180.941 2.6 Top 1 Percents Income Bottom 99 Percents Income Increase Increase Wage of 4 EFTA01205763  The US Middle Class Lags Behind Much of the World The median American s vi.ealth is less than one-quarter of the median Australian's 5200 000 150.000 III iiIIIIInum 100,000 50.000 I I 3 4IPage of 4 EFTA01205764