Pew Study Confirms America’s Broke, Gutted Middle Class
A recent Pew study confirms that America’s middle class has been gutted, particularly over the past 10 years. The study cites data which show that middle class earnings and net worth have plunged since the mid-2000s and 85 percent say it’s harder to maintain their standard of living than it was 10 years ago.
Henry Blodget of Business Insider explains that over the past three decades, a larger and larger portion of America’s income growth has gone to the top 10 percent, and in particular those in the top 1 percent. This is in stark contrast to the prior 60 years in which both the top 10 percent and the bottom 90 percent shared in the income gains.
Blodget adds that, unbelievably, “average hourly earnings” in America have not increased in 50 years. He points out that companies are struggling to grow their businesses because the middle class is in decline.
The “health” of the middle class is important, not only from a fairness standpoint, but for the health of the economy as a whole, he says.