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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe Middle Class is... well... Melting Away.
You're probably aware that a great chunk of America is poorer today than before the housing crash. But recently, the Russel Sage Foundation delivered a reminder that middle-class wealth is in fact still lower than it was a generation ago. As shown on the graph below, the median household in 2013 was worth about 20 percent less than in 1984.
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As Allison Schrager writes over at Bloomberg Businessweek, middle class families are poorer today than in the Reagan days for two main reasons. For starters, housing collapsedand for most Americans, their home is their biggest source of savings by far. Second, household debt has risen significantly over time. Because wealth is just the value of what we own minus what we owe, the typical family is now worth less than 30 years ago.
Or is it closer to 45 years ago? In case the chart didn't make you depressed enough, consider this: New York University professor Edward Wolff has calculated that, by 2010, median net worth in the U.S. had plummeted to its lowest level since at least 1969. Now, Wolff's research and the Russell Sage report were based different data sets. But the newer numbers still suggest that middle-class wealth has declined a bit in the last four years. So when it comes to their financial health, many American households might well be stuck back in the age of Aquarius.
More on Slate.
trublu992
(489 posts)truedelphi
(32,324 posts)The Republicans and the Democrats are totally into outsourcing the jobs, letting the Hb1 visa people come in and take good paying jobs, allowing the Bernanke to fiddle around over at the Federal Reserve such that the price of gas doubled in the first few months he was at the Fed (And Obama re-appointed him) and on and on.
The only way that the Dems and Republicans differ is on social issues. I mean, sure the Democrats have taken the pulse of the voters and now seemingly are all about raising the minimum wage, but at the same time, they are helping to give tax breaks to Amazon for developing a fleet of drones that will eliminate the UPS or Fed Ex drivers.
The "Smart Cars" are going to soon be "Smart Trucks" so no drivers there will be needed, either. In other nations, there are legal provisions that stop this sort of thing from happening.
senseandsensibility
(17,066 posts)I'm not talking about the fifties and sixties middle class jobs that paid enough to support a family with only one spouse working. That sounds like a fairy tale. I mean any kind of job paying above minimum wage that might support a single adult and allow them to rent a one bedroom apartment and buy food? See how low the expectations are now?
Agschmid
(28,749 posts)I need a plan B.
moondust
(19,993 posts)shutting down thousands of factories and moving better-paying jobs to Mexico, China, India, Bangladesh, etc., in order to show bigger profits and find favor with Wall Street. Grow or die, ya know. If you can't show bigger profits by increasing sales, then rape your increasingly vulnerable employees of their pay and benefits.
blkmusclmachine
(16,149 posts)xfundy
(5,105 posts)It wasn't that long ago. Then, retail workers became victims of demonization.