According to a report released yesterday by the Pew Research Center, the middle class is no longer the majority in America.
The report states, “In early 2015, 120.8 million adults were in middle-income households, compared with 121.3 million in lower- and upper-income households combined, a demographic shift that could signal a tipping point.”
Growth for both lower- and upper-income households
As the middle class has decreased in size steadily since 1971, both lower- and upper-income household numbers have increased — and the share in the upper-income tier has grown more than the lower-income tier.
However, the aggregate household income over the years has shifted from middle-income to upper-income households. Back in 1970, the aggregate share of all income held by upper-income households was 29%, and middle-income households accounted for 62%. In 2015, the upper-income share is 49% of all income, with 43% now going to middle-income households.
The Pew Research Center report shows that both far edges of the income spectrum have seen the most growth, with 20% of Americans in the lowest-income tier (up from 16% in 1971), and 9% in the highest-income tier (up from 4% in 1971).
Other bad news for the middle class
Along with the shrinking of the middle class, and its reduced aggregate income, the median income has also dropped for middle-income households. Middle-income households had 4% less income in 2014 than in 2000, and the median wealth (assets minus debts) fell 28% from 2001 to 2013.
Are you part of the dwindling middle class?
A calculator on the Pew Research site will let you determine if your household qualifies as middle-income, but no matter where you fall in America’s income spectrum, it is almost certain that you would like to earn more of it.
That’s why Market Traders Institute is in business — to change lives — and we would appreciate the chance to move you into a higher income bracket before the next report appears. With our investor training, you could move from lower- to middle-, or middle- to upper-, or even from upper- to the highest upper-income level. But we can’t help you until you find out all we can do.
Use the form below to attend one of our upcoming free Forex webinars, or if stocks and options seem more interesting to you, join us for one of these presentations at https://www.markettraders.com/stock-package/.
No matter where the calculator says you fall in the U.S. income spectrum, there’s room to move up, and we would like to help you do just that.