Middle Class Economics: Income Inequality
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Index

Preface: We Need a Change in Growth

1.Class Structure Must Be Defined

2. Income and Wealth Distributions

3. Home Ownership: Entry Into the Middle Class

 

4. Since 1917 the Extremes Got More Economic Pie

5. Growth of Wealth and Income

6. Analysis

See How's the Middle Class Doing.

 

 

Preface: We Need a Change in Wealth Growth

Source  See  The Great Recession Casts a Long Shadow on Family Finances

 

 
 

1.Class Structure Must Be Defined
Upper Aristocracy, Really Wealth People
Upper Middle Very Successful Professionals and  Business Owners
Middle Middle Successful Professionals and  Business Owners
Lower Middle Low Paying White Collar Service Workers
Lower Laborers, Part Time and Unemployed
   

 
   

Source   See Forget the top 1% — Look at the top 0.1% and How Much Income Puts  You in the Top 1%, 5%, 10%?

 

   
 

2. Income and Wealth Distributions

Table 1: Income and net worth in the U.S. by class, 2013 Editors Note: Mean is Higher than Median

  Mean household income Mean household net worth
Top 1 percent Upper Class
 
$1,679,000 $18,623,400
Top 20 percent
Upper Middle
$257,200 $2,260,300 Upper Middle
60th-80th percentile
Middle Middle
$76,500 $236,400
40th-60th percentile 
Middle Middle

$46,000

$68,100
Bottom 40 percent
Lower Middle and Lower Class
$20,300 -$10,800

Current Discussion on the wellbeing of the "middle class is about this group
though most people consider themselves "middle class!

From Wolff (2014); only mean figures are available, not medians.  Note that income and wealth are separate measures;  so, for example, the top 1% of income-earners is not exactly the same group of people as the top 1% of wealth-holders, although there is considerable overlap.  Source Wealth, Income, and Power by G. William Domhoff is extensive.
See
The Numbers Game: How's The Middle Class Doing

 
 
 

 


 
3. Home Ownership: Entry Into the Middle Middle Class    
   

Historical Homeownership Rate 1890 through 1970
Note: Home ownership stayed at  about 45% until WW2 pushed it to 60%
This was a major increase and it created the Middle Middle Class

   
   

Homeownership Rate

01/01/1890 47.80%
01/01/1900 46.70%
01/01/1910 45.90%
01/01/1920 45.60%
01/01/1930 47.80%
01/01/1940 43.60%
Homeownership Rate
Date Homeownership
01/01/1945 53.20% WW2 Prosperity, VA Loans
01/01/1950 55.00%
01/01/1956 60.40%
01/01/1960 61.90%
01/01/1970 62.90%
   
 

 
 

Greed Stopped Progress

Source  See Causes of the Great Recession
 

 
  4. Since 1917 the Extremes Got More Economic Pie

Urban Institute Believes Upper Middle Class is the Big Winner
See
The Growing Size and Incomes of the Upper Middle Class
6/16
 

 
  5. Growth of Wealth and Income

6. Analysis: Trump Had Better Be Correct About Trickle  Down
or We are in for Deep Do Do See
Middle-Class Plight

 

incomea2014

 

Safety Net vs. Taxes

American's Value Work

Americans stand out on individualism

 

So Unemployment Benefits are Low

Americans Are Self-reliant

Individual liberty vs. state guarantees

   

 

So Taking Wages is Low

   
US Tax Structure

Corporations paying fewer taxes

  record.profits
   

Wealthy pay more in taxes than poor

   

 

 

  
            See  Why is Poverty So Controversial?

Poverty

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Wellbeing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5-ways-americans-and-europeans-are-different/ft_16-04-22_usindividualism/

 

 

 

 

 

 

Infographic: Where The Most Workers Put in A 60-Hour Week  | Statista

The U.S. tax system is progressive, with higher-income taxpayers facing higher tax rates

Image result for college graduate graphs

 

 

large and increasing share of medical costs are paid by third parties (private health insurance, Medicare, Medicaid, Department of Veterans Affairs, etc.) and only a small and shrinking percentage is paid out-of-pocket by consumers

stuff-keeps-getting-cheaper

basics

2. Chart of the Day II (above) shows aggregate spending in the US on “life’s basics” — a) food, b) clothing, c) cars and parts, d) household furnishings (appliances, furniture, etc.), e) housing expenses and utilities, and f) gasoline and other energy products (data here), as a share of US personal disposable (after-tax) income (data here). Consider that back in the “good old days” of the 1950s, Americans as a group spent more than 50% of after-tax income on “food, clothing, and shelter,” and before that it was even higher. Over time, as manufactured goods have become less expensive relative to our income, the share of disposable income spent on “life’s basics” has fallen, and reached an all-time low last year of slightly below 34%. We can always find a lot to complain about, but we should be thankful that as a country we now spend less of our disposable income on “food, clothing, and shelter” than at any time in US history.

 

 

incomeshares

earners1

HoursNew

HoursNew

realchanges

 

married

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realchanges
Precipitous Slip in Services Sector

Source: Bureau of Labor Statistics; Allianz Global Investors.
As of February 29, 2016.

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http://cepr.net/publications/graphic-economics/changes-in-life-expectancy-and-social-security-s-full-retirement-age

 

 

Table 2
Life Expectancy at Age 65, Men

  Bottom Half of Earnings Distribution Top Half of Earnings Distribution
1987 15.3 years 17.5 years
1992 15.5 years 18.5 years
1997 15.7 years 19.6 years
2002 16.0 years 20.6 years
2006 16.1 years 21.5 years
 

Infographic: The UK trails Europe in holiday allowance | Statista