Dying middle class spells disaster
Fewer Americans today (as a share of the total population) are part of the middle class than at any time since WW2. As serious a threat as that is, what's worse is the HUGE number of middle class families who are one bad day away from poverty:
76 million Americans are struggling financially or just getting by
"Some 46% of adults say they can't cover an unexpected $400 expense or would have borrow or sell something to do so.While lower income Americans said they'd have the toughest time handling this emergency charge, some 38% of middle class Americans reported they'd have trouble too. Even 19% of those raking in over $100,000 a year said they couldn't pay the bill promptly.
...
"Nearly one-third of non-retired adults have not socked away anything for their Golden Years nor do they have a pension. This includes 27% of those age 60 and older."
Today's middle class has less wealth and less real income than the middle class of the 70s:
Millionaires in the US own a hugely disproportionate share of the wealth, compared to other parts of the world. 66% of the US wealth is millionaire-owned, compared to 22% in Japan. This is an increase in concentration of wealth since the 50s of astonishing proportions, and the trend continues.
We should note that the "ideal" in the 2nd graph above is NOT everybody being the same, it just allows everyone to have something rather than the few at the top to take the lion's share while 40% of the population has close to nothing. The rich still get to live better than the rest.
The presence of a large middle class is essential for the well-being of every American, regardless of that family's individual income level. The fewer poor in a community, the better. The lack of an extreme concentration of wealth in few hands is also crucial. Example:
The lower unemployment numbers may have a lot more to do with the fact that more people have stopped looking for jobs and are no longer officially part of the labor market, than many would like to believe.
If history has taught us anything, it's that increasing income disparities and a weakening middle class means deep economic trouble, subsequently social unrest, and ultimately, political instability.
76 million Americans are struggling financially or just getting by
"Some 46% of adults say they can't cover an unexpected $400 expense or would have borrow or sell something to do so.While lower income Americans said they'd have the toughest time handling this emergency charge, some 38% of middle class Americans reported they'd have trouble too. Even 19% of those raking in over $100,000 a year said they couldn't pay the bill promptly.
...
"Nearly one-third of non-retired adults have not socked away anything for their Golden Years nor do they have a pension. This includes 27% of those age 60 and older."
Today's middle class has less wealth and less real income than the middle class of the 70s:
Millionaires in the US own a hugely disproportionate share of the wealth, compared to other parts of the world. 66% of the US wealth is millionaire-owned, compared to 22% in Japan. This is an increase in concentration of wealth since the 50s of astonishing proportions, and the trend continues.
We should note that the "ideal" in the 2nd graph above is NOT everybody being the same, it just allows everyone to have something rather than the few at the top to take the lion's share while 40% of the population has close to nothing. The rich still get to live better than the rest.
The presence of a large middle class is essential for the well-being of every American, regardless of that family's individual income level. The fewer poor in a community, the better. The lack of an extreme concentration of wealth in few hands is also crucial. Example:
The lower unemployment numbers may have a lot more to do with the fact that more people have stopped looking for jobs and are no longer officially part of the labor market, than many would like to believe.
If history has taught us anything, it's that increasing income disparities and a weakening middle class means deep economic trouble, subsequently social unrest, and ultimately, political instability.