America’s middle-class is disappearing as a result of two recessions, a falling housing market, stubbornly high unemployment, rising gas prices and more.
Here’s how you know that America’s middle class is shrinking:
- There are 8.5 million people receiving unemployment insurance and over 40 million receiving food stamps.
- At the current pace of job creation, the economy won’t return to full employment until 2018.
- Middle-income jobs are disappearing from the economy. The share of middle-income jobs in the United States has fallen from 52% in 1980 to 42% in 2010.
- Middle-income jobs have been replaced by low-income jobs, which now make up 41% of total employment.
- 17 million Americans with college degrees are doing jobs that require less than the skill levels associated with a bachelor’s degree.
- Over the past year, nominal wages grew only 1.7% while all consumer prices, including food and energy, increased by 2.7%.
- Wages and salaries have fallen from 60% of personal income in 1980 to 51% in 2010. Government transfers have risen from 11.7% of personal income in 1980 to 18.4% in 2010, a post-war high.
