Skip to content

Study finds American middle class has collapsed over last decade

By Catholic Online (News Consortium)
4/22/2014 (3 years ago)
Catholic Online (www.catholic.org)

Middle class incomes in other developed countries overtaken the U.S.

Long thought impossible, a new study suggests that the American middle class has lost its standing in the world as the most affluent global class.

A study shows that America's middle class has collapsed during the last decade.

A study shows that America's middle class has collapsed during the last decade.

Highlights

By Catholic Online (News Consortium)
Catholic Online (www.catholic.org)
4/22/2014 (3 years ago)

Published in U.S.

Keywords: Finance, US, class struggles


div id='media-1203-700'>

The LIS study shows that the American middle class has lost its affluence in the world.

The LIS study shows that the American middle class has lost its affluence in the world.


LOS ANGELES, CA (Catholic Online) - In a study based on surveys conducted over the last 35 years by New York Times website The Upshot and  LIS, an organization that maintains the Luxembourg Income Study database, showed that citizens in the lower and middle income tiers in other advanced nations have, over the last three decades, received considerably larger raises than comparable to their counterparts in America.

Help to fight world hunger.

In 2000, Canada's after-tax incomes for the middle class were substantially behind those of Americans, but the study shows that they now appear to be higher than those in America. Even the poor in other countries are doing better, in much of Europe they're better off than the poor in America.

A family in the 20th percentile of income distribution in America makes significantly less than those in Sweden, Norway, Finland or the Netherlands. When the study began the opposite was true.

These findings are shocking because per capita GDP, the most commonly cited statistic when discussing economics, continues to show that the United States maintains a large lead over the rest of the world, and is still the richest. However, these numbers are averages and do not adequately show the real income distribution, which is a relatively large slice going to a small portion of the country.

Median per capita income has been virtually unchanged in the US since 2000, after adjusting for inflation. By comparison in Britain and Canada, it went up 20 percent.

Part of the reason is that the youth of American, those between the ages of 16 and 24, have fallen behind the educational ability and skills of those age groups in other developing countries. Another key factor is that companies in the US do not distribute as much of their wealth to the middle and poorer classes, as companies do elsewhere.

"The idea that the median American has so much more income than the middle class in all other parts of the world is not true these days," said Harvard economist Lawrence Katz. "In 1960 we were massively richer than anyone else. In 1980, we were richer. In the 1990's, we were still richer."

---


'Help give every student and teacher Free resources for a world-class moral Catholic education'


Copyright 2017 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for APRIL 2017
Young People.
That young people may respond generously to their vocations and seriously consider offering themselves to God in the priesthood or consecrated life.


Comments


More U.S.

Michigan doctors charged in America's first genital mutilation case - Child told they would 'get the germs out' Watch

Image of FGM is happening in the U.S.

A Michigan doctor and his wife were arrested Friday for conspiracy, female genital mutilation (FGM) and aiding and abetting. LOS ANGELES, ... continue reading


Feast of Divine Mercy: Doubting Thomas and the Wounds that Heal Our Disbelief Watch

Image of Divine Mercy

His doubts healed the wounds of our own disbelief. They also open up -  for all who look with the eyes of faith - a deeper ... continue reading


NYC Catholics accuse Cardinal Dolan for 'playing both sides' as shuttered churches open doors to illegal immigrants Watch

Image of Will shuttered churches be used to house immigrants (WikiWand)?

A group of activists stood outside St. Patrick's Cathedral in Manhattan every Lenten Friday with a large banner reading, "When did we see ... continue reading


Corrupt lab worker is free after costing $50m and destroying 24,000 lives Watch

Image of Annie Dookhan is free following her conviction despite impacting 24,000 lives and costing the state $47 million to date.

Some criminals work for law enforcement. This is the case of "Little Annie," a crooked lab chemist whose personal effort to make herself ... continue reading


Central Americans died to be seen by the Supreme Court - Asylum-seekers continue to be deported Watch

Image of Supreme Court denies hearings for Central American asylum seekers.

A group of women and children from Central America who have been prioritized for deportation lost a legal battle Monday, when the U.S. ... continue reading


Never Miss any Updates!

Stay up to date with the latest news, information, and special offers.

Catholic Online Logo

Copyright 2017 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2017 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.