The American Middle Class Is Losing Ground
After more than four decades of serving as the nation’s economic majority, the U.S. middle class is now matched in size by those in the economic tiers above and below it.
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After more than four decades of serving as the nation’s economic majority, the U.S. middle class is now matched in size by those in the economic tiers above and below it.
Just what is “economic inequality”? Depends on whom you ask.
The gap between America’s upper-income and middle-income families has reached its highest level on record. In 2013, the median wealth of the nation’s upper-income families ($639,400) was nearly seven times the median wealth of middle-income families ($96,500).
The median wealth of white households was 13 times the wealth of black households and 10 times that of Hispanic households in 2013, compared with eight and nine times, respectively, in 2010.
The nation’s aggregate wealth continues to show signs of recovery, but that wealth recovery has been concentrated on the wealthiest Americans. Meanwhile, the aggregate net worth for America’s economic middle is actually declining.
A few critics have portrayed our report as an effort to foment a “generational war” over Social Security and Medicare. Let me respond.
Until the housing market and home equity levels fully recover, the typical American household still has a ways to go.
Although household-income growth for African-Americans has outpaced that of whites since the 1960s, those gains haven’t led to any narrowing of the wealth gap between the races.
Despite large and persistent gaps between blacks and whites on virtually every indicator of economic well-being, about half of all whites say the average black person is about as well off financially or doing better than the average white person, according to a survey released last week by the Pew Research Center.
If you’ve ever woken up wondering “Is Bill Gates or Carlos Slim the world’s richest person today?”, Bloomberg’s new visualization of data on the 100 richest billionaires is for you.
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