What caused the middle class to shrink?

Some households have fallen into poverty; others have moved into affluence. The balance of those two shifts determines what happens to the size of the middle class. You found that, in about half of the countries you studied, the size of the middle class fell substantially — in fact, by about 10 percentage points.

What does it mean that the middle class is shrinking?

The gradual hollowing out of the middle class is a complicated story. For example, in the US, the Pew Research Center found that America’s shrinking middle class is the result of some people slipping into lower income classes, but an even larger share of the population rising into the upper classes.

When did the middle class start to decline?

Using the four-out-of-five criteria definition, which puts about half of American households in the middle class, the size of American middle class declined from 51.7\% in 1988/1989, to the lowest of 40.6\% in 2014/2015.

Is the middle class fading?

The income data are from the Census Bureau report “Income and Poverty in the United States: 2017.” Yes, the “middle-class is disappearing” as we hear all the time, but it’s because middle-income households in the US are gradually moving up to higher income groups, and not down into lower-income groups.

Is the middle class getting richer?

There has been a heavy consensus among researchers that the middle class is shrinking. This is not a new trend. According to Cato, “since 2016, the United States has had more wealthy households than middle‐​class households and the share of low‐​income households has reached a historic low.”

How much has the middle class shrunk?

The results can also change depending on where someone looks: a Pew study from 2018 said that the middle class in the United States specifically shrank by 9 percent since the 1970s, going from 61 percent in 1971 to 52 percent in 2016.

What is the decline of the middle class?

The decline of the middle class is a reflection of rising income inequality in the U.S. Generally speaking, middle-class households are more prevalent in metropolitan areas where there is less of a gap between the incomes of households near the top and the bottom ends of the income distribution.

Why the middle class is failing?

The middle class is failing because the basic philosophies upon which it is based no longer work. The only solution for the middle class is to get above middle class wages, savings and investment.

Why did the middle class rise in the Middle Ages?

THE RISE OF THE MIDDLE CLASS The rise of the middle class was a result of the industrial revolution. The “middle class” first appeared in Europe in the late middle ages, with the revival of trade and development of structures (armies, diplomatic marriages, endowments) that could convert money into power.

What are the characteristics of the middle class?

characteristic of the middle class(es); reflective of that class’s values and aspirations. Commonly associated with a desire for social respectability and an emphasis on family values and education.