I have a hard time determining what "class" I am because I'm not sure if that should be based on salary or networth. I grew up "upper middle class" - my father was an actuary who commuted an hour to New York to work for the same company for 30+ years; my mother, a stay-at-home mom. We lived a comfortable very upper middle class life in a cozy suburb. I definitely expected somehow to be able to maintain this lifestyle as an adult with my own future family.
While I earned a bachelors degree in fine arts, I was able to build my career up over the past 10 years and go from making about $25k a year to over $165k. Yet my income is extremely unstable. I work for startups in an area where the cost of living is very high, and my jobs rarely last longer than 3 years - sometimes they last even less than one. My average earnings over the past 10 years has been more like $55k. I'm considering going back to school for a masters degree to switch careers but the fear of taking on massive loans to switch careers into a field that will likely pay less (though maybe be more stable) is terrifying me and keeping me away from it. While I earn over $165k today, I do not imagine ever being able to afford a house in my area (SF.) My only hope for a middle class life is to invest as much as possible and hope the stock market goes up in the next 10 years. I've been focused on increasing my networth, with a goal of $500k before kids for some stability.
While I earned a bachelors degree in fine arts, I was able to build my career up over the past 10 years and go from making about $25k a year to over $165k. Yet my income is extremely unstable. I work for startups in an area where the cost of living is very high, and my jobs rarely last longer than 3 years - sometimes they last even less than one. My average earnings over the past 10 years has been more like $55k. I'm considering going back to school for a masters degree to switch careers but the fear of taking on massive loans to switch careers into a field that will likely pay less (though maybe be more stable) is terrifying me and keeping me away from it. While I earn over $165k today, I do not imagine ever being able to afford a house in my area (SF.) My only hope for a middle class life is to invest as much as possible and hope the stock market goes up in the next 10 years. I've been focused on increasing my networth, with a goal of $500k before kids for some stability.
3
Most small businesspeople are in your situation. My income was all over the place when I was working.
One thing might help: a person who makes most of their money later in life will suffer by not being able to put enough into retirement. Tax rules could be changed to take this into account.
Income average used to work to address your (and my) issue, but as I recall, so many abuses were finagled that now no more income averaging.
One thing might help: a person who makes most of their money later in life will suffer by not being able to put enough into retirement. Tax rules could be changed to take this into account.
Income average used to work to address your (and my) issue, but as I recall, so many abuses were finagled that now no more income averaging.
The American Middle Class needs to select a third and fourth part that truly supports its interests.
This means sharing more of the gains of productivity with workers rather than all of the gains from productivity being captured by C-Suite Executives and Shareholders, many of whom represent non-American interests.
This means revamping trade agreements and making access to the still somewhat coveted US Consumer contingent on favorable benefits accruing to the American Middle Class worker and mot just to shareholders and consumers. Yes, I am also an investor through my 401-K and a consumer, but I, as are my fellow American Middle Class, am first and foremost an individual who works for a living.
I am therefore interested in a political party who will protect my American Middle Class interests more so than the interests of Global Transnational Corporations, the Executive class, Shareholders and Foreign Trade "Allies".
That's not to say that these other stakeholders cannot have theory interests served. It does mean that American Middle Class interests come first.
Is there anything wrong or un-American with placing the interests of the American Middle class first over these other interests?
This means sharing more of the gains of productivity with workers rather than all of the gains from productivity being captured by C-Suite Executives and Shareholders, many of whom represent non-American interests.
This means revamping trade agreements and making access to the still somewhat coveted US Consumer contingent on favorable benefits accruing to the American Middle Class worker and mot just to shareholders and consumers. Yes, I am also an investor through my 401-K and a consumer, but I, as are my fellow American Middle Class, am first and foremost an individual who works for a living.
I am therefore interested in a political party who will protect my American Middle Class interests more so than the interests of Global Transnational Corporations, the Executive class, Shareholders and Foreign Trade "Allies".
That's not to say that these other stakeholders cannot have theory interests served. It does mean that American Middle Class interests come first.
Is there anything wrong or un-American with placing the interests of the American Middle class first over these other interests?
3
I grew up the lower middle class. I went to an average local state school fully funded on student loans, equaling roughly 30k. I'm 30, live and work about 30 miles east of downtown Los Angeles and make 85k/yr. I'm single with no plans to have kids, but I still can't fathom feeling comfortable in my own economic standing, now or in the future.
My friends who own property in Southern California ALL received help from family members, whether in the form of funding the down payment or paying for their tuition. I'd say I live fairly comfortably, but high rents for any halfway decent neighborhood make the process to save for a down payment on a home agonizingly slow. Like, uber agonizing. I'm lucky that I don't have a plethora of student debt, but even the amount I do have is certainly a bit of a hindrance. If you were lucky enough to be born into a solid family, financially, you're almost always going to be in darn good shape. If you're not, well, good luck.
My friends who own property in Southern California ALL received help from family members, whether in the form of funding the down payment or paying for their tuition. I'd say I live fairly comfortably, but high rents for any halfway decent neighborhood make the process to save for a down payment on a home agonizingly slow. Like, uber agonizing. I'm lucky that I don't have a plethora of student debt, but even the amount I do have is certainly a bit of a hindrance. If you were lucky enough to be born into a solid family, financially, you're almost always going to be in darn good shape. If you're not, well, good luck.
19
The middle class of the 1950's had The Great Depression and WWll as their set point. They had a very different perspective on what constitutes comfort.
In the 1950's a household had one party line telephone, one car, one TV with a choice of three stations, kids bicycled to the library for fun, public schools were regimented, and standardized tests were frequent. Fathers were veterans who went through college on the GI bill. Mortgages were hard to get. Food was expensive, so leftovers were a fact of life. Restaurant dining was a rare occasion. Clothing was meant to last for a few years of wear. Furniture was slipcovered and kept for a lifetime. Travel was a Sunday drive or a once in a lifetime trip to Disneyland. Are we really better off now?? We have more choices, but maybe not.
In the 1950's a household had one party line telephone, one car, one TV with a choice of three stations, kids bicycled to the library for fun, public schools were regimented, and standardized tests were frequent. Fathers were veterans who went through college on the GI bill. Mortgages were hard to get. Food was expensive, so leftovers were a fact of life. Restaurant dining was a rare occasion. Clothing was meant to last for a few years of wear. Furniture was slipcovered and kept for a lifetime. Travel was a Sunday drive or a once in a lifetime trip to Disneyland. Are we really better off now?? We have more choices, but maybe not.
15
Almost every commenter complains. When I go to the gym, I see students and cleaning ladies using the vending machines buying junk food at inflated prices. When I go to Whole Foods, the store is full of people buying expensive stuff. When I go to the movie theaters, I see the place jammed by people paying a fortune to see those movies that will come to the public library on DVD for free. When I go to restaurants, I see the place is packed.
People, stop complaining and learn some common sense, incl. frugality.
Oh yes, those poor people making 250+K in NYC and complaining, move to other cities where you might make half as much as you do now but life is four times cheaper.
People, stop complaining and learn some common sense, incl. frugality.
Oh yes, those poor people making 250+K in NYC and complaining, move to other cities where you might make half as much as you do now but life is four times cheaper.
10
As one who was once firmly ensconced in the middle class, I have since become one of those who have watched everything about my lifestyle change for the worse-and the major reasons are two very familiar ones: the value of my home and property has been reduced below its cost and, more importantly, a stagnating wage.
I have been employed in one of the HCA hospitals for 11 years. Although the corporation is the largest owner of hospitals in this country and has yearly revenue in the billions (I checked), I have not had a raise in 3 years - and the last one was 0.5 percent. No mystery here. The problems for the middle class are generated by corporate greed. Period.
I have been employed in one of the HCA hospitals for 11 years. Although the corporation is the largest owner of hospitals in this country and has yearly revenue in the billions (I checked), I have not had a raise in 3 years - and the last one was 0.5 percent. No mystery here. The problems for the middle class are generated by corporate greed. Period.
14
I'm a single mother; once upon a time I was professional-middle-class. Fancy education, summer camp, new cars, all that. All that ended when I got out of college, some 25 years ago. Mainly through location I've had more security than most of my peers -- I live in a tax sink, a university/hospital town with relatively low housing costs, unions, and a liberal, everyone-should-have-good-public-services mentality. Life is still a white-knuckle affair, but despite below-average income I own property and can see retirement from here, unless the wealthy figure out how to rob me of it first.
What disturbs me is watching my daughter's generation, a magpie generation, and the kids maybe half a generation older. They're very sharp; they look for opportunity, they're aware of money. They know the rich will try to look good by putting out tiny cupcakes here and there for the masses. (Possibly these wealthy even believe this is "sharing" or "generosity".) But I don't think the kids have any real hope of doing more than getting by, maybe-maybe living on their own, and possibly doing a good thing or two in the world for others. They're filled with trepidation and what dreams they have are muted, and I think that will be expensive for all of us.
What disturbs me is watching my daughter's generation, a magpie generation, and the kids maybe half a generation older. They're very sharp; they look for opportunity, they're aware of money. They know the rich will try to look good by putting out tiny cupcakes here and there for the masses. (Possibly these wealthy even believe this is "sharing" or "generosity".) But I don't think the kids have any real hope of doing more than getting by, maybe-maybe living on their own, and possibly doing a good thing or two in the world for others. They're filled with trepidation and what dreams they have are muted, and I think that will be expensive for all of us.
22
I am "ashamed" to admit that I belong to the top 0.1%. Has the country become so socialist that earning a great income is to be scorned? To build a career or business requires huge effort for a decade or longer. The Horatio Alger thing should be a source of inspiration not ridicule. There are a lot of people starting businesses and doing well. The system works, however I agree it is not easy.
Wealthier people are already paying huge taxes. Only the top 20% contribute to the Federal Government. The bottom 60% are net takers.
Those of us providing the tax base would liked to be thanked, not despised.
Wealthier people are already paying huge taxes. Only the top 20% contribute to the Federal Government. The bottom 60% are net takers.
Those of us providing the tax base would liked to be thanked, not despised.
7
It's not that you should be ashamed of working hard and reaching the top 0.1% -- The biggest problem is that not everyone can be 0.1%. You need teachers and nurses and doctors and people to work for the business you're building and bus drivers and house builders and mechanics et al for your .1% income to mean anything in society. The happy balance is where you have a lower income society that has the opportunity to move up to middle class, and a middle class society that every so often gets to experience an upper class moment, while feeling stability in the middle class. If everyone quit their day jobs to build a business (and we all know the odds of that working out) we'd be in a lot of trouble. Society needs stable happy middle class income workers for it to work. Also, we should look to those who have built their own businesses and wealth as a source of inspiration, but please remember that most of the top .1% obtained their networth via inheritance, not via hard work.
12
"Only the top 20% contribute to the Federal Government. The bottom 60% are net takers.". Oh, dear heavens! Do you actually believe that? Please, read Paul Krugman's columns regularly for a while. They might open up your eyes.
8
The reason many wealthy people think of themselves as middle class is psychological. There is a sense that middle class values are the right ones, more an emotional idea than a specific one. The negatives of being rich in American culture are pictures of excesses of goods and behavior whether true or not. Some of the 1% don't want to feel separate from the mass in the middle
3
This article has tried its best to depict the condition of middle class. There are a number of factors that need to be considered.
1)Home rentals increase every time the lease is renewed whether annual or once in two years depending upon the contract.
2) The Government doesn't encourage small savings. Practically no interest is paid even if the money is put in Banks whatever may be the type of account.
3) The retirement and college savings are subject to market fluctuations, please correct me if I am wrong.
4) The article mentions that there is not much hike in the commodities. This may not be correct. Agreed, the cost of gas has come down drastically. Perhaps it might have rubbed on the few commodities and not everything.
5) The cost of school uniforms and other stationery required for the children must have increased considerably not to mention other sundries.
6) I don't think the employees get the annual increments and monthly increase in dearness allowance based on the cost of living of that particular place.
7) I don't know whether any employee is paid House Rent Allowance, District / City / Mega City Allowance.
In the absence of such monetary compensation and also due to lack of Government interest in enforcing the Banks to pay at least 4 % interest on Checking and Saving Accounts and 8 to 9 % interest on Fixed Accounts as is done in India, how can a middle class employee breathe ?. Adding fuel to the fire is ridiculously high cost of college education.
1)Home rentals increase every time the lease is renewed whether annual or once in two years depending upon the contract.
2) The Government doesn't encourage small savings. Practically no interest is paid even if the money is put in Banks whatever may be the type of account.
3) The retirement and college savings are subject to market fluctuations, please correct me if I am wrong.
4) The article mentions that there is not much hike in the commodities. This may not be correct. Agreed, the cost of gas has come down drastically. Perhaps it might have rubbed on the few commodities and not everything.
5) The cost of school uniforms and other stationery required for the children must have increased considerably not to mention other sundries.
6) I don't think the employees get the annual increments and monthly increase in dearness allowance based on the cost of living of that particular place.
7) I don't know whether any employee is paid House Rent Allowance, District / City / Mega City Allowance.
In the absence of such monetary compensation and also due to lack of Government interest in enforcing the Banks to pay at least 4 % interest on Checking and Saving Accounts and 8 to 9 % interest on Fixed Accounts as is done in India, how can a middle class employee breathe ?. Adding fuel to the fire is ridiculously high cost of college education.
1
Surprised none of the comments I've read are from those who have led the life of an entrepreneur. Entrepreneurs pile career risk on top of the risk of a changing economy. If you have the temperament it is fine way to rise above the "employment trends".
I got my BA in the mid 70s and spent a life starting and/or running half a dozen small businesses. Some were successful, some are gone (painfully so), none became huge. All had steep learning curves which successively added to my abilities. Today my wife and I earn enough working part time for a simple middle class living (nice rented home, fun older car, high quality food and medical, some travel and education). I'm confident if my current business sputtered I could be a tremendous asset in someone else's young enterprise so even though my future income is not secure I feel secure in my future earnings power.
While my cash savings are modest, I have bits of private equity accumulated along the way that I hope will provide significant income when I stop working.
I never had my dad's regular paycheck or secure retirement. He could count on more in the bank each year, I've had to go in debt and dig myself out. He was always insured, sometimes I've chosen to go bareback.
All the kids are all entrepreneurs. The youngest got out of college a year ago and is now making $60-80 an hour doing something she really enjoys. If she stops, her income drops to zero and her only safety net is her skills and wits. I can relax about her.
I got my BA in the mid 70s and spent a life starting and/or running half a dozen small businesses. Some were successful, some are gone (painfully so), none became huge. All had steep learning curves which successively added to my abilities. Today my wife and I earn enough working part time for a simple middle class living (nice rented home, fun older car, high quality food and medical, some travel and education). I'm confident if my current business sputtered I could be a tremendous asset in someone else's young enterprise so even though my future income is not secure I feel secure in my future earnings power.
While my cash savings are modest, I have bits of private equity accumulated along the way that I hope will provide significant income when I stop working.
I never had my dad's regular paycheck or secure retirement. He could count on more in the bank each year, I've had to go in debt and dig myself out. He was always insured, sometimes I've chosen to go bareback.
All the kids are all entrepreneurs. The youngest got out of college a year ago and is now making $60-80 an hour doing something she really enjoys. If she stops, her income drops to zero and her only safety net is her skills and wits. I can relax about her.
2
Middle class in America means "I don't feel I'm being judged harshly by others for who I am, and how I live." It is the state of a somewhat delusional mind. It's like automobile driving: most people rate themselves as "good" or "great" automobile drivers.
Based on how I grew up, what my parents earned, and what I know of my own and others yearly earnings, I'd say the study which recently showed that making more than about $75,000/year doesn't make a person any happier shows where the average middle class income is now. If you live in a small to medium size city in America now, you can be middle class on that amount of yearly income. Any less than that, and you feel you are struggling. Any more than that, and others begin to perceived you to be "rich".
What has happened in the past 30 years is the billion dollar a year income as a result of managing, or owning a hedge fund, or founding a hugely successful tech start-up. This has set a new standard for the elite in America, and changed everything else around it. Millionaires are no longer the top mark. One needs to be a billionaire to be considered rich. Everything else adjusts downward from there.
3
"Economists say that while nearly all Americans consider themselves middle-class, a sense of economic security is slowly eroding."
--> Yet almost 50 million cannot afford food are need food benefits. These cannot possibly be middle class?
--> Yet almost 50 million cannot afford food are need food benefits. These cannot possibly be middle class?
2
"What is particularly surprising about the increasing income volatility since the 1970s...is that it coincided with an unusually stable stint of economic growth that lasted from the mid-1980s until the recession in 2007."
Why is this surprising? This period coincides with the rise of technology, automation, outsourcing and offshoring in massive scale, to the point where no well-paying jobs is immune to that, unless you're a plumber or electrician or barber. Management of public companies is no longer rewarded in accordance of growing a business (never mind taking care of its human assets) but in cutting costs. As a salaried employee, however well-paid you might have been, once your job is axed, you're toast.
Between the tech bubble burst in 2000 and 2008, average americans (I won't even call this middle america) have kept up with the jones' by leveraging, essentially betting the house away. The Fed and Wall St happily obliged, by keeping interest rate effectively zero and by financial alchemy to make "risks" go away. Investors (yes, the same suckers who religiously socking salary away monthly to their 401k and pension funds) would soak up these triple-A investments. Enablers like Goldman Sachs earned big time, no matter who eventually ends up holding the bag.
And so, I would argue that the so called "unusually stable stint of economic growth" from mid-1980s to 2007, that stability is nothing but mirage.
Why is this surprising? This period coincides with the rise of technology, automation, outsourcing and offshoring in massive scale, to the point where no well-paying jobs is immune to that, unless you're a plumber or electrician or barber. Management of public companies is no longer rewarded in accordance of growing a business (never mind taking care of its human assets) but in cutting costs. As a salaried employee, however well-paid you might have been, once your job is axed, you're toast.
Between the tech bubble burst in 2000 and 2008, average americans (I won't even call this middle america) have kept up with the jones' by leveraging, essentially betting the house away. The Fed and Wall St happily obliged, by keeping interest rate effectively zero and by financial alchemy to make "risks" go away. Investors (yes, the same suckers who religiously socking salary away monthly to their 401k and pension funds) would soak up these triple-A investments. Enablers like Goldman Sachs earned big time, no matter who eventually ends up holding the bag.
And so, I would argue that the so called "unusually stable stint of economic growth" from mid-1980s to 2007, that stability is nothing but mirage.
5
What "middle class"? Someone who has a million dollars- particularly in assets- is barely "middle class" in America today.
I've been reading the comments on and off all day. What's clear is that there are pockets within the US where people make $150,000--250,000 that are extremely expensive, and thus stressful, and there are the rest of us living where $100,000 makes you rich and $40,000 leaves you stressed out.
Is there a political solution for all this stress and anxiety? I tend to think that, if there is a solution, it revolves around nationalized medical care and the lessening of job insecurity, especially job insecurity created by outsourcing and/or the importation of cheap foreign labor. Of course, there is also an individual solution that calls for a turn away from consumerism and the lust for more and more material items.
Is there a political solution for all this stress and anxiety? I tend to think that, if there is a solution, it revolves around nationalized medical care and the lessening of job insecurity, especially job insecurity created by outsourcing and/or the importation of cheap foreign labor. Of course, there is also an individual solution that calls for a turn away from consumerism and the lust for more and more material items.
16
I engaged in class warfare in grade school, however, I think today's plutocrats will be dodging a lot more than spitballs.
1
I know where my next meal will come from. I have the ability to read and write. I have a job. Millions (MILLIONS) of Americans just like you and me don't have these securities and skills. How do they possibly handle life in our system? They have lost any leverage to pull their way out and are in a quicksand. I can keep fighting and keep buying food and paying bills. I'll likely work until my late 70's or longer but I'll keep battering away at life. What will happen to the unwashed masses that are squashed beneath the weight of it all in this society? Who will their children be? What kind of a society will we have? Who will live next door to us? We are all in this together.
12
don't worry the welfare check and food stamps are hitting the debit cards of the non working poor. right now.
5
My Dad, who died 15 years ago, worked for the same company for almost 40 years and retired at 60 with an income of $50K a year, thanks to a generous pension, smart investing and keeping a close eye on expenses. Products of the Depression, my parents were very frugal but could afford everything they wanted, in a modest way. My two siblings and I graduated from private colleges in the Midwest with no loans taken out by my parents. Both my parents were college graduates, but my mother did not work outside the home. They considered themselves "upper middle class." They both lived to 90 -- 30 years on their retirement income. I expect I have about 20 more years to live and my retirement income is just about the same as my Dad's, but I have a mortgage and they paid their house off in 10 years. I've dropped from "upper middle class" to plain old middle class, but the lessons learned from my Depression-era folks have sustained me. I have plenty and am grateful for what I have, but I must say it isn't as much as I thought it would be.
13
The middle class is in the desperate financial situation it is today because of a deliberate effort which harks back to 1971 with a memorandum written to the US Chamber of Commerce by a Virginia lawyer named Lewis Powell who put forth a strategy for the corporate blueprint intended to dominate our democracy.
Powell, who later became a US Supreme Court Justice, advocated that the business interests in this country should take over the most important institutions of public opinion and democratic decision making. The shift he advocated more than 40 years ago is still being carried out today, changing campaign finance law by breaking radical new ground with the Roberts' court decision (Citizens United) allowing big money to essentially buy both politicians and elections.
Also Powell recommended doing away with regulations that govern American corporations and how they do business. The agency that was going to be central in bringing about the changes put forth in Powell's memorandum was the US Chamber of Commerce with offices all over the US.
There are many other recommendations in the Powell plan that would shift the power to corporations to dominate our democracy. I recommend that you read this memorandum by Googling Lewis Powell Memorandum of 1971 to see clearly how the plan sought to destroy the American middle class and its standard of living.
The policy advocated to effectuate all this was called trickle down economics.
Powell, who later became a US Supreme Court Justice, advocated that the business interests in this country should take over the most important institutions of public opinion and democratic decision making. The shift he advocated more than 40 years ago is still being carried out today, changing campaign finance law by breaking radical new ground with the Roberts' court decision (Citizens United) allowing big money to essentially buy both politicians and elections.
Also Powell recommended doing away with regulations that govern American corporations and how they do business. The agency that was going to be central in bringing about the changes put forth in Powell's memorandum was the US Chamber of Commerce with offices all over the US.
There are many other recommendations in the Powell plan that would shift the power to corporations to dominate our democracy. I recommend that you read this memorandum by Googling Lewis Powell Memorandum of 1971 to see clearly how the plan sought to destroy the American middle class and its standard of living.
The policy advocated to effectuate all this was called trickle down economics.
13
The American Middle Class needs to select a third and fourth political party that will seek to elevate the interests o the American Middle Class over the Lewis Powell supported Global Transnational Corporations, over the interests of Shareholders, over the interests of C-Suite Executives and over the interests of Bankers.
American Middle Class interests, despite lip service to the contrary, are not being supported by the Democratic party. The Dems are closet Lewis Powell's pretty apt at projecting a warm smile while hiding the daggers behind their backs.
The Republicans are in the midst of a full frontal assault on te interests of the American Middle Class.
Research and place in power parties that will stand with the American Middle Class.
Citizens Party of the United States
Justice Party
Modern Whig Party
Green Party - Jill Stein
Libertarian Party
Reform Party
American Middle Class interests, despite lip service to the contrary, are not being supported by the Democratic party. The Dems are closet Lewis Powell's pretty apt at projecting a warm smile while hiding the daggers behind their backs.
The Republicans are in the midst of a full frontal assault on te interests of the American Middle Class.
Research and place in power parties that will stand with the American Middle Class.
Citizens Party of the United States
Justice Party
Modern Whig Party
Green Party - Jill Stein
Libertarian Party
Reform Party
Another factor at work is internationalization and the Internet. From the 1950's to the 1990's, most Americans felt part of a recognized micro-class or micro-caste within their geographical region. To be useful, a person had to have skills that were recognized and needed by his immediate locality. Today, the "little worlds" of most Americans have been opened up to include a much broader geographical region, even the entire globe. Put another way, there was a time that one could be the best plumber in Little Rock Arkansas... but today s/he will be measured against national and international standards. It's becoming less possible to be "the big fish in one's little pond". This re-scripting will, I believe, create feelings of anomie and even worthlessness, as one is increasingly measured and appreciated by global standards. Thus is the current plight of the American middle-class.
4
Orwell, 1984: "Throughout recorded time, and probably since the end of the Neolithic Age, there have been three kinds of people in the world, the High, the Middle, and the Low. They have been subdivided in many ways, they have borne count- less different names, and their relative numbers, as well as their attitude towards one another, have varied from age to age: but the essential structure of society has never altered. Even after enormous upheavals and seemingly irrevocable changes, the same pattern has always reasserted itself, just as a gyroscope will always return to equilibrium, however far it is pushed one way or the other.
The aims of these groups are entirely irreconcilable..."
The aims of these groups are entirely irreconcilable..."
10
I hope someone in our national leadership is reading this article and the Times pick comments.
My wife and I have recent graduate degrees (MA and PhD respectively from tip-top programs) but cannot afford to save up enough money for a down payment on a house because we are paying down the 100,000 dollars in debt to our federal government (and counting) we incurred because we thought the debt would lead to higher paying jobs. We are also paying 25%+ in income taxes.
A federal government collects 50 billion a year in student loan payments from people like us yet CBS and other multibillion $ corporations pay ZERO federal taxes.
My wife and I have recent graduate degrees (MA and PhD respectively from tip-top programs) but cannot afford to save up enough money for a down payment on a house because we are paying down the 100,000 dollars in debt to our federal government (and counting) we incurred because we thought the debt would lead to higher paying jobs. We are also paying 25%+ in income taxes.
A federal government collects 50 billion a year in student loan payments from people like us yet CBS and other multibillion $ corporations pay ZERO federal taxes.
7
Middle class? What's that?
We USED to have a middle class in this country, back in the day when unions pressed for their members to be treated like real human beings and China was this place called 'Red China' that Washington didn't even officially recognise. But once our corporate honchos were able to look across the borders and seas for cheap labour under the thumbs of corrupt or downright repressive regimes, and the 'Greed is Good' message was basically official policy (You DO remember the '80s, I hope), our jobs began to fade away and our real incomes, aside from those of the puppeteers at the top, began to 'trickle down' - and later start to drop like a rock.
One thing that the greedheads have in common, ironically, with ISIS, al-Qaeda and others of that horrible ilk, is that they all 'hate our freedom' - just for different reasons. In the case of those who outsource for faster profit - the Wall Street creed - it's not only greed, tinged with fear of institutional investors operating under algorithms that automatically dump blocks of stock if the returns don't come in quickly enough (Barbara Duck, the 'Medical Quack' blogger and serious privacy and ethics advocate, has the perfect name for this: "The Attack of the Killer Algorithms"), but long-run stupidity as well. After all, by firing their consumers they're killing off their markets - the once-great American middle class.
At least they haven't taken away our ability to vote. Yet. We'd all better use it. While we can.
We USED to have a middle class in this country, back in the day when unions pressed for their members to be treated like real human beings and China was this place called 'Red China' that Washington didn't even officially recognise. But once our corporate honchos were able to look across the borders and seas for cheap labour under the thumbs of corrupt or downright repressive regimes, and the 'Greed is Good' message was basically official policy (You DO remember the '80s, I hope), our jobs began to fade away and our real incomes, aside from those of the puppeteers at the top, began to 'trickle down' - and later start to drop like a rock.
One thing that the greedheads have in common, ironically, with ISIS, al-Qaeda and others of that horrible ilk, is that they all 'hate our freedom' - just for different reasons. In the case of those who outsource for faster profit - the Wall Street creed - it's not only greed, tinged with fear of institutional investors operating under algorithms that automatically dump blocks of stock if the returns don't come in quickly enough (Barbara Duck, the 'Medical Quack' blogger and serious privacy and ethics advocate, has the perfect name for this: "The Attack of the Killer Algorithms"), but long-run stupidity as well. After all, by firing their consumers they're killing off their markets - the once-great American middle class.
At least they haven't taken away our ability to vote. Yet. We'd all better use it. While we can.
6
Whoa, Whoa, Whoa,
Like many of the comments, I too saw the middle class from a different viewpoint. My family was only allowed to live in a certain part of town due to the Gentlemans Agreement held by Relators. My father and mother grew up during the depression,from their viewpoint education was the factor that leveled the field. My three sisters and my self were driven towards a college education. My dad worked two jobs and my mom worked nights to get us a start. When laws were in place, we moved to an all white neighborhood.
Did that make us middle class, no,but it sure did open the eyes of my classmates. All of us worked jobs during our college years. I cleaned hospital floors, OB Rooms post delivery, picked fruit in the fields and saw the difference our parents were telling us about an education.
We have a small home,watch our money, make most of our dinners, put our daughter through school, yeah I made her work summers. We share a car my wife is retired, I still work and enjoy it. Do I feel left out,no, do I feel that I am missing something? No. When I asked my grandmother for a watch on my 13th birthday, she said" Why, you already have one?" "Do you need more than one to tell you the time?" I keep that with me to remind myself, forgo the fancy and stay with what got you here.
The Chief
Like many of the comments, I too saw the middle class from a different viewpoint. My family was only allowed to live in a certain part of town due to the Gentlemans Agreement held by Relators. My father and mother grew up during the depression,from their viewpoint education was the factor that leveled the field. My three sisters and my self were driven towards a college education. My dad worked two jobs and my mom worked nights to get us a start. When laws were in place, we moved to an all white neighborhood.
Did that make us middle class, no,but it sure did open the eyes of my classmates. All of us worked jobs during our college years. I cleaned hospital floors, OB Rooms post delivery, picked fruit in the fields and saw the difference our parents were telling us about an education.
We have a small home,watch our money, make most of our dinners, put our daughter through school, yeah I made her work summers. We share a car my wife is retired, I still work and enjoy it. Do I feel left out,no, do I feel that I am missing something? No. When I asked my grandmother for a watch on my 13th birthday, she said" Why, you already have one?" "Do you need more than one to tell you the time?" I keep that with me to remind myself, forgo the fancy and stay with what got you here.
The Chief
11
In the past, there was a vibrant growing economy where hard work and initiative were rewarded in the free market. No gurarantee, but at least there was opportunity. Decades of failed liberal Government interference, meddling, and redistribution of income have pretty much ruined things. Thanks, progressives.
7
My wife and I moved to Denver several years ago and our experience here has perfectly mirrored the trends described in the article. We're both college educated, both have good jobs, have no children, and manage a large-but-not-too-large amount of student debt. Since we moved here, Denver has been growing at a staggering pace. Our rent climbed 20% in one year and we are now paying more than I ever in my wildest dreams thought I would pay for rent. We manage to save a little money each month but at our current rate of saving, it would literally take about fifty years before we could buy a house in our neighborhood. We talk about having kids, but are terrified when we hear our older, established coworkers detail the exorbitant costs of childcare. We want to save for retirement, but with what extra money? Meanwhile, huge high-rise luxury apartment and condominium towers catering to the very-wealthy are springing up around town and with each passing day we feel more economic pressure weighing down on us. Each day we feel more out of place in the city we thought was home. Despite our aptitude and education, our wages have failed to keep pace with market cost increases. Yet, the other day, I overheard a conversation between two very well-paid higher-ups at work; one was happily congratulating the other on their shared "market adjustment" raises. As you might have guessed, I have yet to receive the memo informing me of my wage adjustment...
17
I grew up in a two income, dual professional household. My father worked three jobs, a primary academic job and two part time consulting jobs. My mother worked at a non-profit in a managerial role. We lived in a modest house, did not have air conditioning, my parents shared one Chevy with no air conditioning or FM radio; we had one B&W tv and shopped at Sears with the certainty that my younger siblings would live with hand-me-downs. My mother, who had an advanced degree and job, made her own dresses. For those of middle age people, do you remember the dress patterns women used to have? We had no credit card debt. We had no help and certainly not the accouterments of the current middle and even lower middle class.
It is not clear to me that there has been an actual deterioration of the middle class or simply a raising of expectations. My children have cell phones, internet access, multiple TV's, cars, and I could go on and on. It is considered de rigueur. Credit cards are standard as is debt. People spend with abandon and sadly, so do I. My parents did not. Subscription based services, consumer excess in everything from electronics to clothing and autos dot the landscape.
Finally, the concept of poverty has become a measure of relative wealth not actual poverty. It is not set by firm standards but by the differential of expectations. This is the same for the middle class.
It is not clear to me that there has been an actual deterioration of the middle class or simply a raising of expectations. My children have cell phones, internet access, multiple TV's, cars, and I could go on and on. It is considered de rigueur. Credit cards are standard as is debt. People spend with abandon and sadly, so do I. My parents did not. Subscription based services, consumer excess in everything from electronics to clothing and autos dot the landscape.
Finally, the concept of poverty has become a measure of relative wealth not actual poverty. It is not set by firm standards but by the differential of expectations. This is the same for the middle class.
17
Thing is, 'stuff' is relatively cheap these days. Free trade, etc. I used to be a seamstress, but no point anymore. It's actually cheaper to buy a dress than to buy the fabric to make one yourself, let alone the time involved. It's the cost of housing, education, healthcare that is getting us.
4
You don't know what poverty is until you hold three bills in your hand and only have the money to pay one of them. The calcus of the impoverished is truly amazing. I'm fairly certain they could outperform many a hedge fund manager in their ability to manage risk
1
But in the final existential analysis, life is an angst filled struggle. What do people learn from whatis happening around them? Do they examine their lives? They ape everyone else and lead that "life of quiet separation."
'I'm working-class', a brilliant friend announced when joining a sibling and me for dinner at a well-known NY Club, 'and you are the Elite!' She cracks me up, she does. The sibling comes from inherited wealth, and I have been a typist by profession forever, worked for her as her secretary when she was the head of our Water Division for an international children's Fund, and our favorite subject at the moment is that we're broke.
'Save your pennies. None of us are getting rich in the future!', a favorite slogan these days, and I don't ask friends today on food stamps, or those fortunate to make a salary, what class of society they belong to. If someone asks, I am quick to respond that I am a 'New Poor', not to be confused with Newport where apparently some of the Rich hang out.
I am worried because The Middle Class has taken a tremendous pounding, and the President is trying hard to redress it. We need it for our young generation who should have a feel for the American Dream, added incentive and hope to continue their education and work which is going to be harder than ever.
If pushed into a corner, and although I may have a royal card up my sleeve, I am working class and a capitalist who wants to make a profit.
'Save your pennies. None of us are getting rich in the future!', a favorite slogan these days, and I don't ask friends today on food stamps, or those fortunate to make a salary, what class of society they belong to. If someone asks, I am quick to respond that I am a 'New Poor', not to be confused with Newport where apparently some of the Rich hang out.
I am worried because The Middle Class has taken a tremendous pounding, and the President is trying hard to redress it. We need it for our young generation who should have a feel for the American Dream, added incentive and hope to continue their education and work which is going to be harder than ever.
If pushed into a corner, and although I may have a royal card up my sleeve, I am working class and a capitalist who wants to make a profit.
I'm looking at the chart and I want to know why 80% of 60 years olds and 30% of 60 years old equals 100%.
2
that government of the corporation, by the corporation, for the corporation, shall not perish from the earth.
5
My wife and I together earn just above the $250,000 mark you mention. While we live comfortably, our budget is strict with not really any more extras than our parents had. As we've seen our parents age and the costs associated with that, we are saving as much as we can today for tomorrow. I'll consider myself rich when my saved money earns more than I do.
2
Sorry, but you are rich already.
10
I'm on the fence about college, even though I spent a good deal of time in college as an undergraduate and law student. I no longer see college as part of the American dream, nor is it a necessity to do well. I am in my late 30s and work in the tech industry now making a very decent living. I'm surrounded by a mostly younger group of co-workers many of whom spent stints in college but opted out because it's not a necessity in the tech world. I think it's better to have well-rounded kids before they hit college, show them the world, give them interests in lots of things but don't let them waste college figuring it out while having an 'undecided' major or majoring in philosophy. If I had to do it all over again, I'd have skipped college and learned to code much earlier ...then I'd have time to pursue my hobbies like art, history and learning languages.
5
Every hour, taxpayers in the United States are paying
$10.54 million for total costs of wars in Iraq and Afghanistan since 2001. If we brought the troops back, and returned that money to its rightful owners, then the title of this article would refer to the middle class feeling very secure.
$10.54 million for total costs of wars in Iraq and Afghanistan since 2001. If we brought the troops back, and returned that money to its rightful owners, then the title of this article would refer to the middle class feeling very secure.
5
Figures do not lie. It was announced that the sale of private jets is rebounding and at the same time more McMansions are being built. I happen to be part of the Middle Class group that is doing OK. My wife and I have teacher pensions and because we lived modestly for years also have some savings. But increasingly fewer people are getting real pensions while workers are getting a smaller share of the pie. Because of tax policies and corporate greed the gap between rich and poor is now as high as on the eve of the Great Depression of 1929! That is pathetic.
9
Pshaw! Any time a middle class home from the 50's is sold unupdated it is an "opportunity" to live in the neighborhood with the expectation of a complete remodel or tear down. The size and finishes are now unacceptable by today's standards no matter how well preserved. It is the granite countertop-ization and McMansion-ization of America that is making everyone feel so poor and unable to afford housing when in reality, the same people can easily afford a smaller un-updated home of the past, the same ones the previous generation thought were just fine.
11
But you forgot to say "and you kids stay off my lawn!"
7
Nice retort, Kevin. I like snark. But what about the point she makes? Why can't we make do with what was fine features that the upper middle class of the fifties and sixties had? Houses smaller than what is normal today (2500-4000 square feet), is what was considered a quite large home back in the day (1600-2400). But yes, please keep your teenager from riding his bike on my lawn!
It is a curious phenomenon that those earning $200,000/year consider themselves middle class. Earning four times as much as the core middle class, these folks face few of the day-to-day struggles of middle class earners and have distinct political and economic interests. Widespread resentment of the wealthy is part of the reason these folks mischaracterize their standing. Also many identify with the class they were born into. One particular harm this causes is that these folks believe they can speak for the middle class and share their values when their incomes generally support a lifestyle that creates a vast gap with the core middle class. Moreover, since media advertisers love these folks they have influence beyond their numbers.
11
With median house income (that is household not individual) at about 54k, meaning that half all house holds live on less than that, it should be no surprise that the American middle class is becoming smaller and smaller at the expense of the wealthy class assisted by Reupublican tax cuts over the past 30 years. With the recent enacting of more "right to work laws" the American worker is at the mercy of greedy industrialsts and other business owners who are amassing great wealth at the expense of workers and conmpanise who have amassed trillions of dollars in wealth are hoarding the money instead of paying workers a liveable wage. Americans who continue to vote against their own self interest are getting exactly what they deserve. Nothing.
7
This is a national problem shared by all Americans if we are to consider ourself a nation and not just a bunch of greedy pigs from all over the world. That would require national effort across the board to include the 1% who are part of the US as well. A guaranteed national income set at a reasonable living standard is affordable and would benefit all. It is quite unlikely that we will ever have enough jobs that pay well for all Americans. Obviously, funding would require much higher taxes on the wealthy, and inheritance, and carried interest but savings could be found in the defense budget, the welfare programs, food stamps, agricultural subsidies and the myriad of other special interest programs the government funds. Supporting our children should be a national responsibility as well.
4
I hope that the many writing these comments will connect their experiences and aspirations, and not their fears, to a vote that might revitalize middle class opportunities for more Americans. I hope people will cease to vote for Republicans, union busters, so-called Libertarians, anti-social security/heath care, anti-tax, anti-governmentarians. Thirty years of voodoo economics, demonizing the poor, the immigrant, the unemployed, the elderly, the unwed with children, the public education system, the FDA and EPA, while underfunding welfare, higher education, K-12 education (except for privatized public schools and testing empires), job training, and basic infrastructure, a hacking away at the commonweal begun by Ronald Reagan, have all but destroyed the future economically, educationally, and ecologically for those not born to wealth.
9
Mrs. Patricia Cohen's article is right in point. To quickly illustrate the problem, I have been a successful attorney, a solo practitioner, with 35 years experience. I handle more complex and difficult cases today than 10 years ago. I do get results for my clients. My "real" income is about half of what I used to earn nine to 10 years ago. To my knowledge, it is the reflection of the political and economic problems besetting our country, caused mainly by all too powerful business conglomerates and incompetent, however greedy politicians, a deadly combination for the American Middle Class, whatever the definition.
6
Charles Darwin and his discoveries of evolution, i.e., natural selection, survival of the fittest are playing out in plain sight. This reality has always been, only disguised the past generation or so due to lack of competition. Now that era has passed. The world is becoming so very competitive. Time is accelerating rapidly. It's becoming very difficult for most to keep up the pace. Without STEM skills and tremendous drive, it will be most difficult for most to succeed. It's a jungle out there, an indifferent world that recognizes little, rewards the few. I suppose the only viable solution will be to establish a two tier society, one that provides a safety net for the masses, to control civil society..
4
Excellent story, Patricia -- thanks! Good reporting, good research, good writing. However, I must completely disagree with the closing quote from Robert Frank of Cornell University: "The gap between you and them is much bigger than it used to be. That’s why people feel more stressed out than they used to.”
No, Robert! People feel more stressed out now because they (or their neighbors or their relatives) are losing their homes to foreclosure, losing their jobs to outsourcing, losing their self-esteem during long periods of unemployment and losing their hope for a better future as they see the end result of 30 years of "de-industrialization" in America.
So called "experts" on the middle class need to get away from the East and West Coast on a regular basis so they can see the vast destruction caused by the "hollowing out" of the economy in the "flyover zone" where so many of us live: Downtowns riddled with empty storefronts. Homes that are STILL worth 40% less than they were before 2008. Corporations cutting workforces to the bone. Enormous debt burdens from sending kids to college. Almost zero return on savings. And so on.
The scintillating real estate price booms in coastal cities are completely irrelevant to most of the country. Middle Class "stress" is based on real world experience with declining incomes and prospects -- not envy for the rich. "Keeping up with the Jones" doesn't matter if the Jones are also living on the edge of povery.
No, Robert! People feel more stressed out now because they (or their neighbors or their relatives) are losing their homes to foreclosure, losing their jobs to outsourcing, losing their self-esteem during long periods of unemployment and losing their hope for a better future as they see the end result of 30 years of "de-industrialization" in America.
So called "experts" on the middle class need to get away from the East and West Coast on a regular basis so they can see the vast destruction caused by the "hollowing out" of the economy in the "flyover zone" where so many of us live: Downtowns riddled with empty storefronts. Homes that are STILL worth 40% less than they were before 2008. Corporations cutting workforces to the bone. Enormous debt burdens from sending kids to college. Almost zero return on savings. And so on.
The scintillating real estate price booms in coastal cities are completely irrelevant to most of the country. Middle Class "stress" is based on real world experience with declining incomes and prospects -- not envy for the rich. "Keeping up with the Jones" doesn't matter if the Jones are also living on the edge of povery.
14
I'm 32, employed, have a masters degree, and own my home. I still don't feel comfortable buying a new car, getting married, or having children. I live in an area where my 55k/ year salary can provide well for a single person, but not a family.
When my father was my age, with my same educational attainment, he had a house that is presently worth 3x mine, had two children, and a stay at home wife. Both of my parents drove cars that were always less than four years old, we took family vacations twice a year, and kept a nice boat on the river. It all seems like a crazy dream now.
When my father was my age, with my same educational attainment, he had a house that is presently worth 3x mine, had two children, and a stay at home wife. Both of my parents drove cars that were always less than four years old, we took family vacations twice a year, and kept a nice boat on the river. It all seems like a crazy dream now.
36
As Americans have grown more dependent on govt,voting for handouts,every chance they get,they don't realize how much govt wastes their wealth.Unless we return to personal responsibility and less stealing voting to steal from other people(AKA much smaller govt),we won't get back to the good old days.
8
It is quite misleading to describe the picture of a family from 1957 as being middle class, despite having a house with an in ground pool. These people were the one percent of their day!
23
Far from it. This could most likely be a military officer, accountant, dentist, middle manager, etc.
Economic and social class: the FEELING of security or anxiety, even beyond the reality, yes. Much of the feeling of anxiety on the part of many of we old folks who have exceeded our parents, and are actually solid middle class, has to do with OUR children and grandchildren and THEIR potential to become and/or remain middle class. Class seems really not stable, until it has been established across probably three generations. If you ask most of those in my, comfortably retired, age group how they feel about the prospects of their children and grandchildren, the answers would be negative. The loss of union strength, globalization, work visas and job outsourcing, automation, and the overwhelming domination by corporate organizations have created the new, near universal, American anxiety.
11
It's really not how much money you earn, it's how much you're able to accumulate. Most people could lose their income in a flash. Save your money and it goes a long way toward being able to maintain a comfortable and relatively fear-free existence.
9
In order to save a significant amount you have to have significant expendable income. Although some do, most people don't spend frivolously, but instead have to contend with stagnant wages in the face of ever inflating costs, and with overpriced utilities and oligopolies such as cable and telecom companies that prevent the market from functioning the way it should per what is taught to our students in textbooks.
1
I have a couple of thoughts about insecurity to share. I grew up in the 1950s, the halcyon of security and well being. But it was more short lived than many might believe in my working class community in Virginia. As industrialization began to pick up after WWII, many plants were shut down in the mid to late 1950s. In my Baptist church, most of the men(all caucasian) were unemployed. It took my father quite a number of years to find similar employment.
All of this led to the election of John F. Kennedy, whose campaign theme was to get the "country moving again". The plant shutdowns on a massive scale began a lot sooner than most believe.
All of this led to the election of John F. Kennedy, whose campaign theme was to get the "country moving again". The plant shutdowns on a massive scale began a lot sooner than most believe.
11
Most of the comments affirm the stress on middle-income wage earners and long for a by-gone 1960's golden period of American growth and dominance. As an immigrant whose parents came in relatively poverty from a country with half the US GDP per capita, I have been the beneficiary of American generosity and opportunity.
I work in the legal field and am in my early thirties. Between my wife and I, our household income would qualify in the top 5%, we have zero non-mortgage debt. We have amassed nearly $800k in liquid retirement savings based on a 70% savings rate and moderate index fund investing.
Amazing, yes. But this has been possible because we are not burdened by the expectations of middle-class grandeur of the 1960s, and instead a view that everyday is a new canvas of opportunity without limitations. At some point, we have to keep in context our first world problems, and not lose forget that in a world with an average per capita income is $10-18k per year, almost all Americans are upper-middle class.
I work in the legal field and am in my early thirties. Between my wife and I, our household income would qualify in the top 5%, we have zero non-mortgage debt. We have amassed nearly $800k in liquid retirement savings based on a 70% savings rate and moderate index fund investing.
Amazing, yes. But this has been possible because we are not burdened by the expectations of middle-class grandeur of the 1960s, and instead a view that everyday is a new canvas of opportunity without limitations. At some point, we have to keep in context our first world problems, and not lose forget that in a world with an average per capita income is $10-18k per year, almost all Americans are upper-middle class.
13
Well understood. Evidently, by your own admission, you live below your actual income would permit you, a sacrifice in favor of saving for financial security in the future, which is well known and customary for first generation of Europeans. It is called, self reliance and prudence. In Europe they call it "Saving white money for black days." There is nothing wrong with it, however it is not the American life style or economy. We, Americans are conditioned to spend more because it affords us better standard of living, albeit short lived some times, and because it is good for our consumer oriented economy. Excessive personal savings is not what Americans know. Sorry, but your definition about the "Middle Class" today does not hold water.
From working alongside many Indian-American professionals over the last 25 years, I can attest to a frugalness that is foreign to most native born Americans. I don't know if this poster is Indian-American, but here is how money is saved in that community:
1. All childcare is furnished by the family that comes over from India in six month intervals via a US VISA. The child will never be watched over by a non-relative until the child enters the school system. This childcare is provided free of charge, as most relatives adore the new offspring and love coming to the States.
2. There is absolutely no credence given to Western fashion, so both the male and female Indian-American workers have very, very small work wardrobes. Very little money spent on clothes, watches, shoes, pocketbooks -- unless they really mage it 'big.'
3. These workers bring their lunch to work almost every single day. Oftentimes, it is prepared lovingly by the visiting grandparent. They do not eat in restaurants -- unless they rent a huge hall and are funding a wedding banquet.
4. They come to the United States to MAKE MONEY. Many, but not all, will return to India in their retirement years -- where they also own real estate. They never lose sight of why they are here in the STATES -- for MORE OPPORTUNITY (more money). When you are laser-focused and highly educated -- the systems works for you!
5. Their culture LOVES education They major in MATH and SCIENCE fields.
1. All childcare is furnished by the family that comes over from India in six month intervals via a US VISA. The child will never be watched over by a non-relative until the child enters the school system. This childcare is provided free of charge, as most relatives adore the new offspring and love coming to the States.
2. There is absolutely no credence given to Western fashion, so both the male and female Indian-American workers have very, very small work wardrobes. Very little money spent on clothes, watches, shoes, pocketbooks -- unless they really mage it 'big.'
3. These workers bring their lunch to work almost every single day. Oftentimes, it is prepared lovingly by the visiting grandparent. They do not eat in restaurants -- unless they rent a huge hall and are funding a wedding banquet.
4. They come to the United States to MAKE MONEY. Many, but not all, will return to India in their retirement years -- where they also own real estate. They never lose sight of why they are here in the STATES -- for MORE OPPORTUNITY (more money). When you are laser-focused and highly educated -- the systems works for you!
5. Their culture LOVES education They major in MATH and SCIENCE fields.
When my parents took a month-long grand tour or Europe in 1961 -- we were at the time upper middle class -- they came home with the quaint phrase: "Americans live to work. Europeans work to live."
That truism still holds.
And U.S. corporations know it.
That truism still holds.
And U.S. corporations know it.
12
The article notes increasing income volatility since the 1970s. What event took place then? Nixon removed the dollar from the gold standard. Prior to this our dollars were tied to what gold we had. From this point on the Federal Reserve could put into circulation as much money as they wanted. It was tied to nothing but their whims.
In their efforts to tame the business cycle they have enhanced it. Every financial downturn has effected the bottom and middle classes in a devastating way. Sure on paper the upper 20% has suffered but those assets were above and beyond what is needed to live. The assets they lost were on paper while the assets the middle and lower classes lost were real.
The Federal Reserve would consider you to be richer if your house rose in value. Those gains are not actual profits until the house is sold. Where do you go when you sell your house? Another house whose price has also been inflated with the loose purse strings of the Federal Reserve.
Congress is inept. Instead of infrastructure projects they line the coffers of the military industrial complex as they find one war after another to wage. They concern themselves with every nation on earth but the one they supposedly govern. They spend their time working to pass trade deals that hurt Americans and are gifts to multi nationals.
Abolish the Federal Reserve. If the U.S. Treasury can print a bond it can print a dollar. Stop all the interfering around the world and build infrastructure that is needed.
In their efforts to tame the business cycle they have enhanced it. Every financial downturn has effected the bottom and middle classes in a devastating way. Sure on paper the upper 20% has suffered but those assets were above and beyond what is needed to live. The assets they lost were on paper while the assets the middle and lower classes lost were real.
The Federal Reserve would consider you to be richer if your house rose in value. Those gains are not actual profits until the house is sold. Where do you go when you sell your house? Another house whose price has also been inflated with the loose purse strings of the Federal Reserve.
Congress is inept. Instead of infrastructure projects they line the coffers of the military industrial complex as they find one war after another to wage. They concern themselves with every nation on earth but the one they supposedly govern. They spend their time working to pass trade deals that hurt Americans and are gifts to multi nationals.
Abolish the Federal Reserve. If the U.S. Treasury can print a bond it can print a dollar. Stop all the interfering around the world and build infrastructure that is needed.
7
Wealthy contempt for the poor and less poor is everywhere. I hear it from relatives (more wealthy than myself) who forward emails angrily demanding the poor be drug tested for welfare, who in leisurely conversation say that the South American and Mexican immigrant children being held at the border should not be supported with US dollars because "we can't pay for everyone". And in their general distain for things like community college. Wake up America. The rich will never change - stop voting to support their interests. They despise you and me.
30
Maybe you are not hearing what your relatives are really saying. Just because they have 'more money than you' doesn't make them rich. They are likely middle class, but don't share you views. They 'despise you and me;' doubtful. When I read the NYTimes I see very hateful comments about anyone with even a moderate opinion. Very discouraging; not the democratic party I grew up with.
I do not support drug testing for welfare, but I do support a change in how welfare is distributed. It should not be on a debit card where parents spend on what they desire vs. what they need. Not true for most recipients, but enough to make one step back and question the benefits of welfare for life - welfare to able bodied adults. Truth is, welfare reform back in the 90s worked, but the Dems don't like to talk about that. Why? Dems supported reform too. But that doesn't fit the polarized society that we've been brainwashed to believe - you are either with me or against me based on how you vote?!!
They are correct that illegal immigrants should be turned back at the border. They are illegal! Just because they want to come, doesn't make it feasable. Perhaps you'd like to give your 'wealth' to them, but not I.
Love community college - it is a great path for many, regardless of money, because so many are not ready for college. But free community college? NO WAY!!! More politics out of Obama, but I'm not paying. Already paid for my kids that I decided to have and support.
I do not support drug testing for welfare, but I do support a change in how welfare is distributed. It should not be on a debit card where parents spend on what they desire vs. what they need. Not true for most recipients, but enough to make one step back and question the benefits of welfare for life - welfare to able bodied adults. Truth is, welfare reform back in the 90s worked, but the Dems don't like to talk about that. Why? Dems supported reform too. But that doesn't fit the polarized society that we've been brainwashed to believe - you are either with me or against me based on how you vote?!!
They are correct that illegal immigrants should be turned back at the border. They are illegal! Just because they want to come, doesn't make it feasable. Perhaps you'd like to give your 'wealth' to them, but not I.
Love community college - it is a great path for many, regardless of money, because so many are not ready for college. But free community college? NO WAY!!! More politics out of Obama, but I'm not paying. Already paid for my kids that I decided to have and support.
1
There is a significant component to this phenomenon that is missing from this piece. My parents not only made more money than I do, but they also had better benefits for healthcare and retirement. The single biggest debt anyone has to pay is neither college nor their house, but funding their retirement before reaching retirement age. Without pensions or severance packages, even an individual with a middle-class income would need to save between 25 and 35% of that income to have any hope of a secure retirement. I save one third of my income. My parents did not, nor did they have to.
29
The tax cuts for the wealthy are the single most negative impact on the middle class. This has reduced monies for everything from colleges to infrastructure. The result has been deferred maintenance and skyrocketing tuitions. Somehow we as a nation lost the unity and altruism that emerged with WWII and lasted into the early 1970s. Now the Goldman class enjoys the privilege of wealthy without the social responsibility. And the middle class continues to erode in a sea of debt from college, housing, and in trying to live "the good life. " The wealthy exert political pressure and have seen their income tax plummet since the 1960s with barely a dent for the middle class. The result has been investment in liquidities that are taxed a 15%-20%. It is time for a true Progressive movement again if not almost a Socialist reform.
16
A recently published state-by-state list of incomes required to be firmly in the middle class suggested I was actually an upper-class individual during my last few years of employment (ending in 2013), but that I've fallen out of the middle class since retirement, unless I were to draw quite heavily on my limited retirement savings, thereby rapidly depleting them.
Quite curious --- and quite disheartening
Quite curious --- and quite disheartening
3
There's a lot of talk about college education and rightly so: a college degree has been associated with upward mobility for decades. Forty years ago, a blue collar middle class worker could send his kids off to college and they would become white collar professionals (speaking from family experience here). Nowadays? The dream of college is distant for most Americans. Consider that about 30% of Americans overall have a bachelor's degree or better. And 34% of adults ages 25 to 29 have a bachelor's degree or better. So if you graduate from college, you're a minority in this country.
For those without a bachelor's degree or any technical training, life will be hard. Good jobs that didn't require a lot of training have been shipped out or their wages and benefits have been severely reduced.
For those without a bachelor's degree or any technical training, life will be hard. Good jobs that didn't require a lot of training have been shipped out or their wages and benefits have been severely reduced.
2
If.
If you had the right parents and the right grandparents. If you grew up in the right place and time. If you went to the right schools and had the right teachers. If you were frugal. If you learned how to save and invest. If you were healthy and never got hit by a car. If the government was run by responsible people. If you learned not to need so many things. If you met the right husband or wife. If there was no inflation. If people could somehow be barred from their own irresponsible spending. If colleges could be made to keep costs down. If TV and the internet weren’t always driving people to spend money on things they don't need and can’t afford.
If, if, if.
If you had the right parents and the right grandparents. If you grew up in the right place and time. If you went to the right schools and had the right teachers. If you were frugal. If you learned how to save and invest. If you were healthy and never got hit by a car. If the government was run by responsible people. If you learned not to need so many things. If you met the right husband or wife. If there was no inflation. If people could somehow be barred from their own irresponsible spending. If colleges could be made to keep costs down. If TV and the internet weren’t always driving people to spend money on things they don't need and can’t afford.
If, if, if.
12
The new health care bill will be the final blow to the middle class. It was the largest TAX increase ever and it wasn't a good one. The middle class has seen their medical bills double while they are expected to pay for everyone else's medical. There is only one way this can end. Good bye middle class. This administration will have succeeded then to have set the entire country up for socialism. Firmly believe that's what they wanted to begin with.
7
Many of the "standards" of my parents' era are gone. Company paid health care that actually covered medical expenses does not exist. If I needed stitches or X-rays there was no copay. Now I get charged a $300 copay to go to the ER passing blood from kidney stones. I paid my private high school tuition with the money I earned caddying in the summer. I paid my university tuition working part time at UPS after school, no loans. Minimum wage was actually a living wage, not a deep poverty wage.
My experience from college graduation to retirement is an affordable comfortable lifestyle that transitioned to borderline poverty. When I went from private industry to Federal service, an old law from 1934 (Windfall Elimination Provision) took 80% of my Social Security benefits. Over my 30 years of Federal Service I watched my salary fall to 70% of what my private industry counterparts were earning. Congress kept cutting my benefits. Federal wages and military pay for married couples with children fell so low that 25-40% of them were at or below the poverty level.
My notion of economic security went from being able to pay my bills, save some money and a little left over, to knowing I could survive as a homeless person, living off the grid, in remote areas of the national park system. Big business has reduced us to the life style of the indigenous nations of our country in the 1400's.
My experience from college graduation to retirement is an affordable comfortable lifestyle that transitioned to borderline poverty. When I went from private industry to Federal service, an old law from 1934 (Windfall Elimination Provision) took 80% of my Social Security benefits. Over my 30 years of Federal Service I watched my salary fall to 70% of what my private industry counterparts were earning. Congress kept cutting my benefits. Federal wages and military pay for married couples with children fell so low that 25-40% of them were at or below the poverty level.
My notion of economic security went from being able to pay my bills, save some money and a little left over, to knowing I could survive as a homeless person, living off the grid, in remote areas of the national park system. Big business has reduced us to the life style of the indigenous nations of our country in the 1400's.
27
Well said. The only time the powerful even acknowledge the military is the occasional applause at sporting events or Congress.
1
I still believe that the rich and powerful use military 'events' (wars) to weed out the bottom earners. You will not find the sons or daughters of the well-to-do in harm's way. The poor that they cannot recruit into the military end up in federal prisons. Since all blue collar manufacturing and servicing jobs vanished, the 'leaders' have been at a loss as what to do with the expendable, poor and uneducated. Without wars, how do you 'manage' them?
It is interesting to compare the the post college experience of my wife and I, compared to that of my three children. After graduating from college in 1972 with a total student loan debt of $3500, we headed to a remote Alaska village to teach. In 3 years of teaching, we had paid of our student loan, and put the down payment on a 200 acre Wisconsin Farm. When we realized that that many of our teen-age students were making more in 8 weeks of salmon fishing than we made in 9 months of teaching ( and we were earning twice what teacher then made in the lower 48, we quit teaching, bought a 32' Salmon gill-netter, and became commercial fisherman. By 1980, we had paid off our fishing boat, and we sold it and our fishing permit and headed for Wisconsin with a nest egg of $250,000. We used this to pay off our farm, and started a farm based building supply business, which supported us very well until 2006, when we sold it and became full time farmers. Our 3 children all graduated from college debt-free, and went on get graduate degrees. They chose to settle in Philadelphia and Brooklyn, and all three got great jobs with good benefits. But due to the cost of living, they were able to purchase or rent housing only with parental help. Our middle daughter has a 6 figure income, but struggles to afford the 1200 square foot Condo she purchased in DUMBO. Our son and daughter in law in Phiily both work full time to afford their own inner row house.
4
The lack of regulations on rental housing is pretty astonishing; very few states now cap what can be charged based on the economy. But it sounds like your kids came of age during the mid-2000s. Speaking from experience with my own kids, it was not a great time to come of age. While housing was booming, the prices were unrealistic. Driven up by 2 things - a) the demand by the government in the 90s that everyone had a 'right' to own a house (Fannie and Freddie started giving loans to those that should not have had them, and b) the Fed which decided to keep the prime well below what it should have for over a decade, just because the government wanted people to borrow.
The real problem is that since the mid-90s we have become a nation of consumerism vs. production. We can cry about jobs gone overseas, but cannot change the fact that we now live in a global economy. This is not political, it is a fact. What is political is the fact that the housing bust should not have happened; mis-guided idea that free money meant more consumerism. At some point, someone has to pay the bill.
As long as we are told to 'spend' to spur the economy, as long as we have so many not paying Federal taxes, as long as we continue to expand eligibility for SNAP, CHIP, Welfare, Aid to dependent children, etc. we will continue down the slope that so many kids resent today - ever growing debt.
The real problem is that since the mid-90s we have become a nation of consumerism vs. production. We can cry about jobs gone overseas, but cannot change the fact that we now live in a global economy. This is not political, it is a fact. What is political is the fact that the housing bust should not have happened; mis-guided idea that free money meant more consumerism. At some point, someone has to pay the bill.
As long as we are told to 'spend' to spur the economy, as long as we have so many not paying Federal taxes, as long as we continue to expand eligibility for SNAP, CHIP, Welfare, Aid to dependent children, etc. we will continue down the slope that so many kids resent today - ever growing debt.
Yes, that is my experience -- for more than one reason. Not only because my wage and job opportunities are stagnant, but also because the future looks increasingly ominous: rising carbon emissions, climate change and its unpredictable consequences combined with little progress towards a national/global strategy to change what looks like an increasingly stormy and threatening future.
1
A key indicator of relative wealth is supermarket shopping behavior. If almost everything you buy is on sale and you use at least a few coupons, you're middle class. If you pay with food stamps, you're poor. If you put things in your carriage without looking at the price, you're upper middle class. If you employ someone to do your shopping, you're wealthy. Nobody whose shopping behavior indicates less wealth than yours has any interest in hearing you whine about your economic insecurity.
33
I'm a special educator - for 35 years. Very good at my job and very dedicated to it. That's worth something, yes?
I've got 2.5 college degrees - which I paid for - and that was no picnic. Thankfully, there was federal student loan forgiveness for my first degree if I taught in depressed schools - which I did for years. I paid back state supported college loans by working 2 additional (waitress/bookkeeper) jobs in addition to my teaching job - until age 32. I had no parental $ support for college.
Was that middle class? After 1/2 my career in private non-profit schools where salaries were low and pensions non-existent, I changed to public education so I could earn a pension. The idea that my pension is a 'benefit' is laughable to me. It's part of my salary. It's why I am working the job I have. I'm earning my pension. At 63k with 35 years of expertise, skill, hours worked and education - am I middle class? I live in a working class neighborhood - with crime, litter and crumbling sidewalks - and a mix of wonderful and scary neighbors.
Am I middle class? My health insurance costs rise annually (our contribution and our copay and deductible), my taxes rise, my salary was frozen - again - this year. Middle class?
My house - 1925 built - needs significant repairs (nothing fancy here - for eg. I can't afford to rewire knob and tube - so no AC in summer). Middle class?
why yes, I think I qualify.
I've got 2.5 college degrees - which I paid for - and that was no picnic. Thankfully, there was federal student loan forgiveness for my first degree if I taught in depressed schools - which I did for years. I paid back state supported college loans by working 2 additional (waitress/bookkeeper) jobs in addition to my teaching job - until age 32. I had no parental $ support for college.
Was that middle class? After 1/2 my career in private non-profit schools where salaries were low and pensions non-existent, I changed to public education so I could earn a pension. The idea that my pension is a 'benefit' is laughable to me. It's part of my salary. It's why I am working the job I have. I'm earning my pension. At 63k with 35 years of expertise, skill, hours worked and education - am I middle class? I live in a working class neighborhood - with crime, litter and crumbling sidewalks - and a mix of wonderful and scary neighbors.
Am I middle class? My health insurance costs rise annually (our contribution and our copay and deductible), my taxes rise, my salary was frozen - again - this year. Middle class?
My house - 1925 built - needs significant repairs (nothing fancy here - for eg. I can't afford to rewire knob and tube - so no AC in summer). Middle class?
why yes, I think I qualify.
13
This is no surprise. Since the "Reagan Revolution", the US systematically reduced the progressivity of our tax system, demonized government (w/out which there would be no intercontinental RR. interstate hiway system, microprocessors, space program, internet or hydraulic fracking). It's implemented broad fiscal policies favoring big banks and hedge funds (carried interest) at the expense of labor, and unions, the bedrock of working class prosperity. Finally, the middle class gets clobbered with the insanely undemocratic Citizens United campaign finance farce.
So why is anyone surprised by the downfall of America???
So why is anyone surprised by the downfall of America???
27
This is what the PEOPLE voted for. Ronald Reagan was the first President who convinced the middle class that voting with their bosses was in their own (financial) best interest...And the people said ,"YES."
When the middle class gets angry and decides to fight for something by demanding change from the Congress, it happens. When Richard Nixon lost the support of the average working class white guy...he resigned. When the average middle class guy went on vacation after the sequestra went into effect and the lay offs of air traffic controllers created 5 hour delays, the middle class called their Congress and the lay offs were reversed.
The middle class has contributed to its own decline when we don't exercise our political might at the voting booth and with our Congress. When you are fat and happy nothing matters until it does...too late.
Everything we don't like about America can be changed every two years and we don't vote and when we do vote, it is to maintain the status quo..
Sorry, we are (partly) responsible for the decline of the middle class.
When the middle class gets angry and decides to fight for something by demanding change from the Congress, it happens. When Richard Nixon lost the support of the average working class white guy...he resigned. When the average middle class guy went on vacation after the sequestra went into effect and the lay offs of air traffic controllers created 5 hour delays, the middle class called their Congress and the lay offs were reversed.
The middle class has contributed to its own decline when we don't exercise our political might at the voting booth and with our Congress. When you are fat and happy nothing matters until it does...too late.
Everything we don't like about America can be changed every two years and we don't vote and when we do vote, it is to maintain the status quo..
Sorry, we are (partly) responsible for the decline of the middle class.
17
Sorry, but you attack Reagan and Nixon, but seem to have nothing to say about those in charge for the last 30 years. Reagan was right when he said government was the problem, He saw the inefficiencies first hand and was astounded, having spent most of his life outside DC, and away from 'activists' on either side that speak incorrectly about absolutes. Nixon 'resigned' when he lost the support of the middle class? What history books did you read in school. He was impeached and lost the support of his party as well. Clinton was impeached for lying as well, but would not leave; did not lose the support of his party.
Well meaning social policies have brought much of this upon us. It's time for non-political minds to actually analyze root cause and slowly, very slowly, enact legislation that doesn't empower the government to take over our lives and pocket books, but actually improve equal access to those that have shown they are capable US citizens (not a supporter of illegal immigration or amnesty or HB1 Visas).
Well meaning social policies have brought much of this upon us. It's time for non-political minds to actually analyze root cause and slowly, very slowly, enact legislation that doesn't empower the government to take over our lives and pocket books, but actually improve equal access to those that have shown they are capable US citizens (not a supporter of illegal immigration or amnesty or HB1 Visas).
Mary,
Richard Nixon was never impeached. The House Judiciary Committee voted for articles of impeachment but rather than face impeachment by the House, Nixon resigned...Google it.
The only thing worse than government is no government.
"Well meaning social policies have brought much of this upon us." You are exactly correct but the President that approved much of what we consider liberal or social legislation was signed into law by none other than Richard Nixon. Nixon was an internationalist and could have cared less about domestic affairs. He gave the Democratic Congress a carte blanche and signed everything they passed. And as Yogi says, "You can look it up."
Richard Nixon was never impeached. The House Judiciary Committee voted for articles of impeachment but rather than face impeachment by the House, Nixon resigned...Google it.
The only thing worse than government is no government.
"Well meaning social policies have brought much of this upon us." You are exactly correct but the President that approved much of what we consider liberal or social legislation was signed into law by none other than Richard Nixon. Nixon was an internationalist and could have cared less about domestic affairs. He gave the Democratic Congress a carte blanche and signed everything they passed. And as Yogi says, "You can look it up."
This article captures what we have been feeling ever since we started a family. While we didn't enter the middle class the traditional way, my husband and I are doing okay. We are middle class, but we don't have all of the traditional markers of middle class life. For instance, we are just finally going on a first family vacation due to sacrifice and hard work. Our first born is graduating high school, and we've been married a long time...It has taken us 17 years to take a vacation that would otherwise be the norm in a middle class life.
While we are thankful for that, and for the very good health care we get through my husband's work, we face a lot of insecurity, mostly in the form of declining wages. We are both public servants: he is a librarian, and I am a public school teacher. We BOTH pay into our public retirement accounts, and we will BOTH not be eligible for Social Security because of it. We pay steep premiums for our health care which is the main reason we don't see any increase in our pay.
We will continue to work hard (in spite of what people think about public employees), but I worry for my children. My son doesn't qualify for needs based financial aid because we make too much money. There is NO WAY we can afford to pay the bloated college costs for either of our two children. So will they become the underpaid workers who are saddled with tons of debt?
The answer is yes, our sense of economic security is eroding.
While we are thankful for that, and for the very good health care we get through my husband's work, we face a lot of insecurity, mostly in the form of declining wages. We are both public servants: he is a librarian, and I am a public school teacher. We BOTH pay into our public retirement accounts, and we will BOTH not be eligible for Social Security because of it. We pay steep premiums for our health care which is the main reason we don't see any increase in our pay.
We will continue to work hard (in spite of what people think about public employees), but I worry for my children. My son doesn't qualify for needs based financial aid because we make too much money. There is NO WAY we can afford to pay the bloated college costs for either of our two children. So will they become the underpaid workers who are saddled with tons of debt?
The answer is yes, our sense of economic security is eroding.
15
I was born to 2 immature teenagers in 1951 (17 and 15) They later married and had 7 more children. My Father was a Paranoid Schizophrenic who had a few hospitalizations when I was younger, He eventually became better, He had a diploma from East NY Vocational High School and grew in his trade to earn top dollar. I hustled, delivering groceries, chickens and eggs. At 13 I worked in restaurants until 18. I talked a HR person at Southern Bell into hiring despite no High School diploma. Drafted at 19 I joined the Navy instead. Married at 21, Father at 26. Laid off in 1985 and started my own business for 30 years. Paid for my Civil Engineer son's education and gifted him with a $15K CD. Now retired with $150K annual income and $3MM in houses I rent. I worked 60 hours a week all my life enabling my wife to work part time as a PT. Her family is all Civil Service and basically lazy people. I despise Civil Service people, retiring at high pensions and benefits at 50. Was it worth it all? Yes. My son is successful and working easier with a good wife and children. Success comes from hard work and not letting difficult circumstances beat you. Most importantly it comes by considering all possible difficulties ahead of time and being prepared. You want to work off the books and not pay taxes? Don't complain when you become disabled and don't have a work history to get enough income to live on. The same with Social Security. Avoid the government. Live low debt. Deal honestly with people.
7
And still Americans resist a living minimum wage, defending the rich time and again. Working class folk are their owns worst enemies I fear.
26
learn to vote!
3
Actually, there are no more poor in our country than there were in the 60s. There is just a different attitude, and the government has new ways to count. They do not include the money you recieve in entitlements when calculating the % poor today. And they constantly increase the eligibility for falling into 'poor' or 'middle class' categories. At the same time, they changed how they calculate inflation - we have 20%, not 2% as claimed by DC.
But more importantly, 90+% of those that actually are paid at the minimum wage rate are high school or 20 somethings that are working their way through college or trade schools. I will never support a mandate in raising the minimum wage because of the political, divisive, circus in DC.
But more importantly, 90+% of those that actually are paid at the minimum wage rate are high school or 20 somethings that are working their way through college or trade schools. I will never support a mandate in raising the minimum wage because of the political, divisive, circus in DC.
My wife and I have been extremely fortunate: we earn much more than either set of parents did, we both continue working for the same employers as we did before the great crash, neither of us has ever collected unemployment, we've never missed a mortgage payment, and we have not had to dip into our retirement savings to deal with some financial emergency.
But we know plenty of people who've been laid off, lost homes, gone bankrupt, and so forth. Some of them once earned more than we do. So even though we have not had such things happen to us, watching friends and relatives go through them means we cannot feel safe ourselves.
But we know plenty of people who've been laid off, lost homes, gone bankrupt, and so forth. Some of them once earned more than we do. So even though we have not had such things happen to us, watching friends and relatives go through them means we cannot feel safe ourselves.
15
What a peculiarly disingenuous article. Our current economic conditions relative to our parents are not defined by how much we earned in comparison, but by our relative buying power and obligations. This reminds me of the villain in Austin Powers threatening to demand $1,000,000 in ransom upon awakening from a long sleep. He had to be laughingly told that $1M was no longer a lot of money. It's all relative.
During our parents generation there were ample available jobs that would provide a middle class lifestyle and many of these did not require higher education. You could buy a house, have a car, send your kids to college if they chose to go and end it all with a nice secure pension to make sure you wouldn't end up in poverty. Work hard, keep your nose clean and have a good life.
Now houses cost 30X as much (literally), college is a necessity and will cost more than our parents ever earned in a lifetime, we must foot an extraordinary bill to have healthcare, and there is absolutely no safety net to ensure that you do not lose your income or will end up with any money in retirement. Give our parents an extra $1.2 Mil (conservatively!) in post-tax expenses over the next 30 years and tell them they have to save for their retirement while they're paying these costs. See how middle class they'd feel. I have a feeling that getting a smaller TV than their neighbor wouldn't amount to a hill of beans.
During our parents generation there were ample available jobs that would provide a middle class lifestyle and many of these did not require higher education. You could buy a house, have a car, send your kids to college if they chose to go and end it all with a nice secure pension to make sure you wouldn't end up in poverty. Work hard, keep your nose clean and have a good life.
Now houses cost 30X as much (literally), college is a necessity and will cost more than our parents ever earned in a lifetime, we must foot an extraordinary bill to have healthcare, and there is absolutely no safety net to ensure that you do not lose your income or will end up with any money in retirement. Give our parents an extra $1.2 Mil (conservatively!) in post-tax expenses over the next 30 years and tell them they have to save for their retirement while they're paying these costs. See how middle class they'd feel. I have a feeling that getting a smaller TV than their neighbor wouldn't amount to a hill of beans.
12
Generally, these higher earning "middle class" are wage earners - that is they are not business owners - instead they draw a salary. The biggest problem - the problem which substantially impacts their ability to save and meet expenses are federal and state income, Medicare, and SS taxes. A two income family earning a combined $250K will fork over $90K just for these taxes.
A modest home owner in the NY metro area needs another $20K/ year for ever increasing property taxes. That's $110K/year for taxes and we haven't even taken into account health care insurance, retirement saving, housing and the list of other necessary - not luxury - expenses. Simply stated - the myriad inescapable taxes on the middle income wage earner have risen dramatically through the past two administrations. These taxes substantially negatively impact the ability of a family to gain control of their finances.
Imagine the relief if those taxes were halved! Why doesn't the Times and other liberal publications bother to recognize the pernicious demoralizing effect of government taxation on the middle income wage earner?
A modest home owner in the NY metro area needs another $20K/ year for ever increasing property taxes. That's $110K/year for taxes and we haven't even taken into account health care insurance, retirement saving, housing and the list of other necessary - not luxury - expenses. Simply stated - the myriad inescapable taxes on the middle income wage earner have risen dramatically through the past two administrations. These taxes substantially negatively impact the ability of a family to gain control of their finances.
Imagine the relief if those taxes were halved! Why doesn't the Times and other liberal publications bother to recognize the pernicious demoralizing effect of government taxation on the middle income wage earner?
11
Because it is not politically correct to go against the socialist re distribution of income to eliminate "income inequality" and employ millions of pension building bureaucrats to carry out that destructive policy and insure voter loyalty to the cause.
3
"Imagine if taxes were halved." Imagine if government services which you and others use aren't provided. The rest of the entire developed world pays more taxes, and because they pay more taxes, they are better protected against insecurity - loss of a job, medical bills, education.
The mean may be higher in America, but the variance is as well. Accept a lower mean by having a lower variance.
The mean may be higher in America, but the variance is as well. Accept a lower mean by having a lower variance.
12
The problem is not the taxes that so-called middle class people pay, but rather the taxes corporations & the 1% don't pay. Besides you or a loved one will need SS and Medicare some day.
7
When I look back at my parents and others I knew in their generation (parents of baby boomers), almost all stayed at one job for many decades until their retirement. Such job security is unheard of nowadays.
We live in constant fear of our work being eliminated or degraded - this was never a concern for them. I don't know of a single person in my generation or younger who hasn't had a significant job change (often several), many times being forced to do so.
We live in constant fear of our work being eliminated or degraded - this was never a concern for them. I don't know of a single person in my generation or younger who hasn't had a significant job change (often several), many times being forced to do so.
15
Now we are getting to the core of the issue. The extreme chanes in how corporations treat their employees, coupled with the prevalence of divorce and single-earner households, goes a long way in explaining this newer disparity as much as the (horrific) rise of income inequality. Throw in the effects of Citizens United, 8 years of Bushian disdain for the common person, Republican-controlled Congresses and state Legislatures, combine with out of control inflation in costs of health care, higher education and housing, and the resulting stew is poisonous to the existence of any meaningful "middle class" in our hyper-capitalistic, uncaring United States.
1
I turned 60 last month. I have a masters in Library Science and some 30 years experience in the profession--this is not incidentally a good thing. Five years ago, I lost my managerial job when the Library Board decided they "wanted to go in a different direction". (The direction they moved brought the library to near bankruptcy but that's beside the point) I found a part time job for two years but that place closed last year. I am currently unemployed and frankly don't see any prospect for being able to work in my field again--apparently no one believes that a person my age can be tech savvy. My husband has a masters in Guidance & Counseling. He has worked for NYC for over 30 years and is hoping to retire soon. We own a small house in NJ which we cannot afford and are planning to sell. Fortunately, we have, thanks to spending our careers in the public sector, pensions--an increasingly rare thing these days. Our plan is to take the proceeds from the house, buy some sort of property that will provide income as well as a place to live in some place more affordable than here, pray that Obamacare doesn't disappear before Medicare kicks in or that neither New Jersey nor New York goes broke and hopefully build a business that we can hand down to our daughter.
It is a sad state that my generation has led our country into.
It is a sad state that my generation has led our country into.
17
Before college, one of my older relatives recommended that I study Library Science. This demonstrated how oblivious older generations are at giving advice to youngsters, as any quick research will tell you that that field is as dead as Julius Caesar. Many Baby Boomers seem unaware that everything is in flux, and I think they've failed to understand how economic shifts in the last 30 years changed the game for millennials in (most?) fields.
A large part of the blame for the position so many Americans now find themselves is the electorate. Instead of concentrating on making sure that the citizenry is in good economic health politicians with their constituents approval sidetracked the country into social issues. This distraction allowed the haves to pass or not pass laws and regulation that gradually decimated the income ability of the lower and middle class. If readers listen to such politicians as Elizabeth Warren they will realize the incredible shell game they have been subjected to and that the country has been conned beyond belief. Start voting for those who have sound economic positions that will benefit the majority of the country and not the top 1%.
12
The behaviors of jones-ing, lusting and coveting whatever someone else has that you don't, yet--that's the essence of the American petit bourgeoisie. But the competition to excel academically is not there, thanks to the ubiquitous electronic toys that distract millions from any meaningful acquisition of knowledge and intellectual growth. And the petit bourgeois's simultaneous acceptance of dumbing down and buying into the lifestyles of the underclass, complete with now-ubiquitous prison tats, bizarre hairstyles, trousers for men that reveal half a foot of boxer shorts and buttocks, dabbling or just doing lots of smokeable and snortable drugs...we have become an idiot nation of entitled brats. Whenever cash falls short in many households, a demand is made on the Bank of Mom and Dad, because one must have that boat, that ATV, that truck, those boots, that piercing...
9
" The three million people in the top 1% of (U.S.) earners pay nearly half the income tax."
Wall Street Journal, 4/11/15
That should be enough, even for President Obama and his band of happy taxers.
Wall Street Journal, 4/11/15
That should be enough, even for President Obama and his band of happy taxers.
6
Reply to "1% pay nearly half of income taxes":
Today, the 1% in the US capture 19% of all income, pay 30% of all taxes and have 35% of all household wealth.
The Obama Administration has been able to raise top income and capital gain tax rates from abysmal Bush lows, in the face of fierce GOP opposition.
The average middle class person may not be aware of this but those of the wealthy class (certainly not all of them) who resent paying taxes sure do and their anger is clearly visible in the political process today.
Today, the 1% in the US capture 19% of all income, pay 30% of all taxes and have 35% of all household wealth.
The Obama Administration has been able to raise top income and capital gain tax rates from abysmal Bush lows, in the face of fierce GOP opposition.
The average middle class person may not be aware of this but those of the wealthy class (certainly not all of them) who resent paying taxes sure do and their anger is clearly visible in the political process today.
1
It's still, unfortunately, not nearly enough. Also, remember that more FICA tax is paid by employers and employees than income tax by nearly 90% of the population.
1
I invite our members of Congress to read through the comments on this article. What an indictment of our failing system. There is something dreadfully wrong in America today.
12
The world has also changed. We can be more than a bit myopic in the US. Voting won't change the global context of the US economy. It would be so refreshing to see a little recognition by Americans that there is more happening in the world. More than anything, it makes me sad for Americans, the lack of perspective is relevant at many levels to even recognizing what quality of life is. It is not only related to TV's or fairness. Stability, yes, and that is an issue globally.
1
A lot of academic and think tank type philosophising .The bottom line remains; the US is one of the very few countries and this includes the Third World, where the Middle Classes) cannot afford to pay for their offspring university education...
15
I, and many, many others paid for my own education and are proud of it.
I am 75 and my peers never expected parents to pick up all college, spring for a $40,ooo wedding , buy us a new house with a BMW in the driveway,
The greatest source of self-worth and world peace is lowered expectations.
I am 75 and my peers never expected parents to pick up all college, spring for a $40,ooo wedding , buy us a new house with a BMW in the driveway,
The greatest source of self-worth and world peace is lowered expectations.
1
Most economists are a major contributor to middle class stress. They continue to gauge the economy by dollars rather than the value of those dollars right now. For example, $20+ an hour today is worth less in value, or what it can buy, than the $1.60 minimum hourly wage in 1968. That's why we technically make more money than our parents, but not in any practical (real) sense.
Our incomes by buying power are actually down and have been for decades, and that's with two adult wage earners versus one wage earner a generation or two ago. By reverse thinking, how much stress would our parents or grandparents have suffered if the $1.60 an hour they earned in the 1960s was actually just a few pennies in real value? There would be no way they could put kids through college, save buckets of money for retirement and maybe build a swimming pool like the one in the picture that accompanies this story.
Most middle income earners in America are basically just a few paychecks, or a medical emergency, away from poverty. Economists, again, suggest amassing more savings. But savings can get wiped out pretty quickly when someone loses their job for an extended period of time and then eventually lands another position that pays much less -- if they're lucky.
For every report on the middle class and earnings, please add a reality-check sentence defining what that amount of money is really worth compared to earnings 20 or 50 years ago.
Our incomes by buying power are actually down and have been for decades, and that's with two adult wage earners versus one wage earner a generation or two ago. By reverse thinking, how much stress would our parents or grandparents have suffered if the $1.60 an hour they earned in the 1960s was actually just a few pennies in real value? There would be no way they could put kids through college, save buckets of money for retirement and maybe build a swimming pool like the one in the picture that accompanies this story.
Most middle income earners in America are basically just a few paychecks, or a medical emergency, away from poverty. Economists, again, suggest amassing more savings. But savings can get wiped out pretty quickly when someone loses their job for an extended period of time and then eventually lands another position that pays much less -- if they're lucky.
For every report on the middle class and earnings, please add a reality-check sentence defining what that amount of money is really worth compared to earnings 20 or 50 years ago.
80
Every economic report is adjusted for inflation, you are mistaken about this.
1
Which "economists" are anyone referring to? The Larry Summers/Ivy League Business School ilk, who are all hired by Wall Street to broadcast what it wants to hear? And/or get bigger suckers to place greater bets on?
This isn't true. Economists adjust for inflation. Thats what they mean when they say 'real dollars'.
A recent French sondage asked people's opinions of the ingredients of a successful lfe. Having money and a successful career were ranked 5th and 4th on the list. The first 3 were famliy, friends, and health. Where would Americans rank money and a good job? I think we all know the answer. In France people don't worry about going broke-- old people don't even get a discount on the metro. They worry about having two sons or two daughters instead of being blessed with one of each. So much for the free market. But again, we all know France is finished-- it must be true, since people have been saying so since the 1960's. Our bankster masters won't stop braying for 'structural reforms' until even the French are as insecure as we Americans
5
The French don't need to worry about money and a successful career, because the government pays for all healthcare, college and has very strong labor laws. This is really great, but a lot of high wage earners are moving from France if they can. Name one tennis or soccer star who isn't domiciled elsewhere. They, apparently, are sick of giving all their money to the government. You can't have it both ways- Americans need to cough up more taxes, or live with the fact that life may not be so secure. And if the US government took over healthcare, costs would plummet. No doctor I know in France is rich, unless they're a dermatologist or plastic surgeon....
My husband and I manage but have always lived below our means. We both have doctorates and never expected that working in mental health would lead to extreme wealth. (We were right!)
We moved from pricey Princeton several years ago after premiums for health insurance for our private practice hit $1,000 a month. For two healthy adults and for a plan with $5,000 deductible. Each! We saw the financial crisis in NJ looming and left.
He now works in a small clinic in a small town. We bought a small one-floor house from an estate sale for a third the price of our previous home.
Do I miss the amenities of living where we previously did? Of course. But the awareness that living smaller is living better if we ever want to retire makes up for it.
Now 55 and 60, we plan to invest in aging-in-place remodeling as needed. We may end up finishing the basement (it has a full bath and for some reason a fireplace) into a separate entry apartment and inviting a single parent with a child to live there exchange for helping us with yard work and housekeeping when we're at that stage one day.
Bartering and the shared economy worked for our ancestors. It'll work for us too. Perhaps letting go of "I deserve better" and realizing 4 pairs of shoes is 3 more than about 3/4 of the population worldwide owns will refocus more of us toward what really matters.
We moved from pricey Princeton several years ago after premiums for health insurance for our private practice hit $1,000 a month. For two healthy adults and for a plan with $5,000 deductible. Each! We saw the financial crisis in NJ looming and left.
He now works in a small clinic in a small town. We bought a small one-floor house from an estate sale for a third the price of our previous home.
Do I miss the amenities of living where we previously did? Of course. But the awareness that living smaller is living better if we ever want to retire makes up for it.
Now 55 and 60, we plan to invest in aging-in-place remodeling as needed. We may end up finishing the basement (it has a full bath and for some reason a fireplace) into a separate entry apartment and inviting a single parent with a child to live there exchange for helping us with yard work and housekeeping when we're at that stage one day.
Bartering and the shared economy worked for our ancestors. It'll work for us too. Perhaps letting go of "I deserve better" and realizing 4 pairs of shoes is 3 more than about 3/4 of the population worldwide owns will refocus more of us toward what really matters.
13
Bravo to you both for wise choices.
You sound as if you have a healthy outlook. I take care of my 92 year old mom (Parkinson's (nasty) disease) and am otherwise self-employed; with very high health insurance premiums and deductibles. My daughter got her BA from Harvard and is temporarily employed, part time. My dad was an aerospace engineer during the '60's. For me there is no pension as I've had to walk away from two good university positions to care for my mom. The average cost of care for her would now be $91,250 per year if she were to be in a "home". The adjunct life as a fine arts faculty went on for 10 years. Well, I'm rambling with so many thoughts. Enjoy your new home and life and enjoy the community that you are nurturing.
Of course, it is nice to live well for a while before you give up the amenities and downsize. And I wouldn't call investing in remodeling bartering.
Money, money $oney.
Why does the NYTimes ALWAYS omit the other (at least as important) determinant of middle class?
Social standing.
Income and wealth will never raise a Rodney Dangerfield or a Groucho Marx into that middle class. Nor will lack of it bump a Roosevelt or a Vanderbilt down.
Why does the NYTimes ALWAYS omit the other (at least as important) determinant of middle class?
Social standing.
Income and wealth will never raise a Rodney Dangerfield or a Groucho Marx into that middle class. Nor will lack of it bump a Roosevelt or a Vanderbilt down.
1
Permit me to chime in here with an "alternative view." I am 84. I come from an exceptionally wealthy home. I have what I must describe as deeply "anti-materialistic" attitudes and political positions. Fundamentally, I am a Marxist. I despise what wealth does to people, what it does to their values and intellect and thinking (if any) and to their health - work kills. In my 20s, I took a virtual "vow of poverty." I have never owned a car, and wouldn't. I have never property (and wouldn't). I have never had a savings account or life insurance. My brilliant kids got university scholarships. I am happy. I don't believe the wealthy know what happiness is.
7
Let me guess. You also do not own a television, despise "sport" (and call it that), and are vegan an let everyone know it…..
Permit me to disagree here. I'm very wealthy and also very happy. Money isn't everything, but I use it to do things that I enjoy. I love my life - not all of us feel a strong attraction or aversion to it, some of us are just indifferent, and also happy.
After reading the comments, it highlights that the government should work on making people feel more secure in their day-to-day lives.
Some easy ways to do this would be to: 1. provide free health care; 2. free college education, so long as the chosen major would lead to a reasonable chance of a real job; and 3. a minimal guaranteed retirement that is mandatorily contributed to by the employee (without exception) and which one could expect to live on without fear of poverty in old age.
This was what Roosevelt wanted to do in the New Deal, but was only able to partially accomplish. Since the 1930's we've only made some progress towards these goals and have actually gone backwards with the acceptance by so many of "trickle-down" economics.
The lack of progress towards the original New Deal goals is exactly why the "middle-class" of today feels so insecure.
Some easy ways to do this would be to: 1. provide free health care; 2. free college education, so long as the chosen major would lead to a reasonable chance of a real job; and 3. a minimal guaranteed retirement that is mandatorily contributed to by the employee (without exception) and which one could expect to live on without fear of poverty in old age.
This was what Roosevelt wanted to do in the New Deal, but was only able to partially accomplish. Since the 1930's we've only made some progress towards these goals and have actually gone backwards with the acceptance by so many of "trickle-down" economics.
The lack of progress towards the original New Deal goals is exactly why the "middle-class" of today feels so insecure.
4
Why not "Free"everything???
1
We spend trillions of dollars on college education, and trillions of dollars on health care. In order to provide 'free' health care and 'free' college education, we'd have to tax everyone 100% of their income.
I don't think that would make us happy....
I don't think that would make us happy....
2
I absolutely agree. There's more to being the premiere military power in ther world.
Every so called democracy should offer three things for its citizens from its collective tax base:
1) universal health care
2) universal education though graduate school
3) universal retirement.
The USA has a long way to go to being a meaningful democracy "for the people, by the people."
Every so called democracy should offer three things for its citizens from its collective tax base:
1) universal health care
2) universal education though graduate school
3) universal retirement.
The USA has a long way to go to being a meaningful democracy "for the people, by the people."
2
Middle class is falling to lower class and the new middle class is 100000 plus minimum
2
For all those say how great social benefits in Europe are it's true. The US has been supporting Europe for decades: WWI, WWII, the Marshall Plan, the cold war. Even today Europe spend next to nothing on defense because the US spends so much (Same with Canada. They know we would never allow an enemy on our northern border.) The UK recently announced cuts to their already meager contribution to NATO. Cut US defense spending and let Europe pay their way for a change.
5
Ha. Looking at the main picture in the article, one can imagine a simpler time when America was great for the middle classes.
As a wealthy yet bitter black man, I can only think about the restrictive covenants and how crowded corralled and red lined African American communities were all over Jim and James Crow America at the time. For AAs, there was no idyllic time of American middle class prosperity for us to remember fondly thanks to the thoughtful impediments placed before us by middle class Americans like the ones pictured in the article.
So my response, is welcome to the club. America now treats not only its AAs poorly now, and that's the great takeaway for P-K4. To P-K4, that's a seemingly "fair" result.
As a wealthy yet bitter black man, I can only think about the restrictive covenants and how crowded corralled and red lined African American communities were all over Jim and James Crow America at the time. For AAs, there was no idyllic time of American middle class prosperity for us to remember fondly thanks to the thoughtful impediments placed before us by middle class Americans like the ones pictured in the article.
So my response, is welcome to the club. America now treats not only its AAs poorly now, and that's the great takeaway for P-K4. To P-K4, that's a seemingly "fair" result.
36
I inherited a little house free and clear and can not afford to live in it in retirement. Have you seen the property taxes in New Jersey? My single woman, college degreed 69 year old downwardly mobile lifestyle in retirement can not compare to my parents' high school grad, middle class retiree world they entered at 62. So much for each generation moving forward...What American dream?
15
A lot of revisionist history in these comments. People are telling their sob story about barely making ends meet on $200k year. The Post War boom years are gone and it wasn't Reagan or W that got rid of them. The US consumer did so. It was the demand for semi-skilled labor that drove the middle class wealth. That wealth started to decline in 1973. And the massive demand for semi-skilled labor is gone from these shores for good.
I returned home to Detroit in early 1975 in the midst of a recession. The first oil embargo had its initial influence. But many of my friends were still working at the automakers and still planning on how to get their summer medical leaves approved. I could see the party was ending.
In the 1950's 90+ % of the autos sold in the US were made in the US by US manufacturers. Today it is about 45% if you count the transplants. The rest are imports by foreign manufacturers. And wind turbine blade manufacturing jobs won't come close to replacing the manufacturing sector jobs we lost. We made a decisions as to which products we preferred. So quit crying about Reagan, W and Clinton (Mr. NAFTA).
I returned home to Detroit in early 1975 in the midst of a recession. The first oil embargo had its initial influence. But many of my friends were still working at the automakers and still planning on how to get their summer medical leaves approved. I could see the party was ending.
In the 1950's 90+ % of the autos sold in the US were made in the US by US manufacturers. Today it is about 45% if you count the transplants. The rest are imports by foreign manufacturers. And wind turbine blade manufacturing jobs won't come close to replacing the manufacturing sector jobs we lost. We made a decisions as to which products we preferred. So quit crying about Reagan, W and Clinton (Mr. NAFTA).
4
Part of the problem is that in NO RATIONAL economic world would unskilled or even semi-skilled manual labor EVER be considered middle class. We got spoiled after we were the "last man standing" in 1945.
I hate to say that, but it's true.
I hate to say that, but it's true.
1
@Kevin Hill: Maybe a harder look is required at the designation "middle class". I was from a lower middle class background that would now be considered poor.
There were skilled tradesman that earned two to three times what my father earned. They were the first to leave our neighborhood and Detroit in the 1960's and 1970's. I have no solidarity with them. Sorry.
There were skilled tradesman that earned two to three times what my father earned. They were the first to leave our neighborhood and Detroit in the 1960's and 1970's. I have no solidarity with them. Sorry.
I grew up in the mid / late 70's - and because my father was the manager of a car dealership we were on a roller coaster ride from hell. When the oil crisis hit - 1974 - 75 -- and prices soared our family went from normal to food stamps. In order to feed our dog we used food stamps and bought Rinky lower grade steak -- you weren't allowed to buy pet food. We went from driving around in new-car-smell Cadillacs to no car period. Constantly feast-to-famine. When pundits talk about lower/middle/upper class as categories - I always feel excluded. What about when your life is a combination of all three? I grew up financially hysterical. @johannaclear
3
If you are retired and have full ownership of your home, you can live a nice middle class life in the Reno/Tahoe area for $100,000 annually (except for Incline Village). That is not a difficult amount if you count pensions, retirement accounts, investments, savings and social security.
If you were from the NY-NJ area like me, Jet Blue now flies nonstop daily to and from JFK so you can easily visit your grandchildren.
If you were from the NY-NJ area like me, Jet Blue now flies nonstop daily to and from JFK so you can easily visit your grandchildren.
1
$100k annually in retirement? Are you kidding?! That's nearly twice the median household income in this country. You should be able to live comfortably in huge sections of the US with that kind of retirement budget.
3
This may be the most out-of-touch "get off my lawn!" comment in this entire thread.
I strongly believe that economic insecurity is both psychological and reality based. We live in a consumer driven society and people are measured by what they own and how they look. Both middle class on those who aspire to be are driven psychologically. They want to be like the Joneses. This is a classic example of the concept of relative deprivation.
"It refers to the discontent people feel when they compare their positions to others and realize that they have less of what they believe themselves to be entitled than those around them.” This is not just the poor or middle class envying the rich but something much deeper than that.
Middle class insecurities also hinges on the fact that employers have no allegiance to their employees as they are not held accountable to treat them fairly. Many exploit their workers by keeping their salaries low while they make record profits. Jobs are often moved overseas where employers and corporations pay low wages and further enrich themselves at the expense of the middle class. Union jobs which advocated for the welfare of employees and provided better job securities are almost extinct. These are hard facts that contribute to the insecurities of the middle class.
Who would not feel insecure when their boss can have a meeting on Monday morning to announce that they are downsizing due to the shareholders not earning 100% profit.
"It refers to the discontent people feel when they compare their positions to others and realize that they have less of what they believe themselves to be entitled than those around them.” This is not just the poor or middle class envying the rich but something much deeper than that.
Middle class insecurities also hinges on the fact that employers have no allegiance to their employees as they are not held accountable to treat them fairly. Many exploit their workers by keeping their salaries low while they make record profits. Jobs are often moved overseas where employers and corporations pay low wages and further enrich themselves at the expense of the middle class. Union jobs which advocated for the welfare of employees and provided better job securities are almost extinct. These are hard facts that contribute to the insecurities of the middle class.
Who would not feel insecure when their boss can have a meeting on Monday morning to announce that they are downsizing due to the shareholders not earning 100% profit.
6
I used to be middle class. But today I drive a 2006 Honda Civic with 148,000 miles that has the fix engine light on and two broken power windows that I am not going to get repaired due to other priorities. Although I almost own my home, the driveway is breaking up, and the front porch stoop is also crumbling. Tonight my wife, who is a nurse, and I ate hot dogs and chips for dinner. We budget for absolutely everything and unfortunately the light at the end of the tunnel is really getting dimmer.
It seems everything is falling apart before our eyes. Roads, bridges, schools, and even the once vibrant shopping mall. Worst of all there seems to be a constant strain on average working families who work hard but never get ahead.
Trickle down economics eroded the core of the middle class. And what is worse the folks who engineered this disaster, (the GOP, Wall Street, and the Corporations), now have all the power to crush and grind us into dust. I used to think the future was bright, but no longer. The working man no longer has a sense of fairness in today's economy.
It seems everything is falling apart before our eyes. Roads, bridges, schools, and even the once vibrant shopping mall. Worst of all there seems to be a constant strain on average working families who work hard but never get ahead.
Trickle down economics eroded the core of the middle class. And what is worse the folks who engineered this disaster, (the GOP, Wall Street, and the Corporations), now have all the power to crush and grind us into dust. I used to think the future was bright, but no longer. The working man no longer has a sense of fairness in today's economy.
27
Thanks very much, I agree with you. The Republicans are the main culprit. Reganomics helped to further the decline of the middle class .
2
Middle class life is defined more than anything by instability. My earnings these last twenty years have resembled those of a professional poker player. Some years income was remarkably good. Then, a change in my employer's earnings takes place, and the next thing you know, I'm unemployed. As I search for new employment, I drain savings and ultimately wind up taking a job paying 30% less than the previous one. So the next couple of years I put nothing into the 401k. Now future retirement looks less secure. Not only that, but my "low man on the totem pole" status at the new job means that any future cutback will see me again unemployed. Since I'm now putting away less for retirement, I dare not take any risks with those savings, and so the return on "safe" investments is not even keeping pace with inflation.
Middle class status is more like the stage act where the guy spins plates on sticks and runs around trying to keep them all going. Long term financial commitments made one year, become a financial burden the next. This, in turn affects other financial decisions that you make. With so little future visibility into what your financial circumstances will be, lots of important decisions are made based upon incorrect assumptions about future earnings. These decisions, more often than not, are incorrect because of faulty economic forecasts. All of this uncertainty is what slowly but surely erodes one's feeling of being solidly in the middle class. It is a nightmare of doubt.
Middle class status is more like the stage act where the guy spins plates on sticks and runs around trying to keep them all going. Long term financial commitments made one year, become a financial burden the next. This, in turn affects other financial decisions that you make. With so little future visibility into what your financial circumstances will be, lots of important decisions are made based upon incorrect assumptions about future earnings. These decisions, more often than not, are incorrect because of faulty economic forecasts. All of this uncertainty is what slowly but surely erodes one's feeling of being solidly in the middle class. It is a nightmare of doubt.
14
Wage stagnation is the single biggest threat to the free market economy. An infinite number of academics could write a Ph.D. thesis why wage stagnation has been the malady of the western world, but some of the solutions are are starring us in the face. Minimum wage is a start with a strong immigration policy. This is not Republican-Democrat issue, but a Western Democracy issue. The majority of North Americans should not have to struggle. It's not a question of wealth redistribution, but a question of industrial policy and leadership. Could we create a society where all basic needs are meet? Yes. Does this exist today? Yes. Norway, Sweden, Finland, Denmark, etc. Could we replicate this model in the next 30 to 40 country dover next 20 years? Easily. The thing we are missing is leadership.
8
I believe that the idealized "middle class" in America lasted for only a brief period. It existed only in the 1950's,1960's and 1970's. It was a result of the New Deal policies of FDR and the shared experience of the Depression and WW2 which gave Americans a sense that "we are all in this together." In this period one unskilled wage earner could provide for a family with a comfortable lifestyle. Before this period most people were living hand to mouth. In the 1980's Reagan and his "voodoo economics" began to destroy the middle class and we ended up with the near Depression of 2008. Obama failed in his promise to change the "trajectory" of the nation and the attack on the middle class continues. The slick Republican advertising executives have out maneuvered the Democrats and still control the message. Aristotle said that a strong middle class is necessary for democratic government. I fear for the future of our country.
9
You are correct. And under no circumstances outside this "freak period" where the US was pretty much the last man standing in 1945 would a high school dropout with no skills EVER me considered "middle class."
Those days are gone, and honestly never should have existed. It allowed at least two generations after WWII to believe that anybody without a BA degree or a tremendous amount of luck to be considered anything but working poor.
Those days are gone, and honestly never should have existed. It allowed at least two generations after WWII to believe that anybody without a BA degree or a tremendous amount of luck to be considered anything but working poor.
Thanks NYT for keeping the middle class malaise alive, kicking and relevant in the coming election.
I received my master's from a university in Cambridge, MA. I have been employed on and off since late 2007. I moved back in with my parents who at that age were more well-off than I am now which is a low-ball figure since I practically have nothing.
The high cost of everything, the stagnating wages and persistent job insecurity. The performance driven corporate culture and rising executive pay has eaten its middle managers alive.
I received my master's from a university in Cambridge, MA. I have been employed on and off since late 2007. I moved back in with my parents who at that age were more well-off than I am now which is a low-ball figure since I practically have nothing.
The high cost of everything, the stagnating wages and persistent job insecurity. The performance driven corporate culture and rising executive pay has eaten its middle managers alive.
9
All this reflects is the declining value of the American worker. When what used to be lower middle class jobs can be done more cheaply by robots or the Chinese, this is what you get. I certainly don't want to pay more for something just because it was made in the USA, and I also don't think anyone should be insulated from their declining value through wealth transfer just because they happen to be citizens. Inequality is the new global reality. Get used to it.
13
Wrong. FDR changed a similar paradigm. Thoughtful taxation can do some.
Let's see what Hillary & Jeb Bush propose; both are aware of the problem.
Let's see what Hillary & Jeb Bush propose; both are aware of the problem.
1
Thanks for so elegantly summing up what I describe as "The New Compassion'. Where did the notion of the Social Contract go? Caring for others in our society? Not treating the poor as morally deficient?
Americans forget that the level of gun ownership in the US is astronomical and that if inequality keeps moving to new historical highs then the gun-owning masses might just take matters into their own hands. Remember the French Revolution?
Americans forget that the level of gun ownership in the US is astronomical and that if inequality keeps moving to new historical highs then the gun-owning masses might just take matters into their own hands. Remember the French Revolution?
1
I will gladly pay more for something made in the USA and I am just barely middle-class. It's difficult to find USA made but I appreciate the higher quality. Many times in a year, I see "made in China" and I don't buy it. Has anyone else noticed how much harder it is to find that "made in China" on items?
1
Come on everyone, you need to become like the 1%. You'll see, once we're all like them, there won't be any losers. It's not like the 1% would want a different outcome, would they?
The reason so many people believe they belong in the middle class is because income distribution in the United States is supposed to be a bell curve. Most people were in the fat part of the bell and comfortable. Now the curve is flattening and the tails are growing (or at least one tail is). Economists always thought they were specifying economic positions on a linear scale. The crowd, with crowd wisdom, understood what was important. To be in the comfortable middle, along with almost all other, able to buy the necessary commodities and afford minor luxuries.
11
You start out in life with undischargeable student loans. You can lose your job at any time because America has "firing at will." You are at constant risk of having a health problem which will bankrupt you. If you have children you know your savings account will be emptied (and then some) once you have to send them to college. But you all have a shot at the brass ring and earning more than 200k per year.
Sounds like a recipe for disaster if you ask me.
Sounds like a recipe for disaster if you ask me.
40
My Dad's company went bankrupt about the time he retired, thank god for the PBGC - a government program that partially guarantees private company pensions. I went to community college and a state university. Graduated in 1981 from college with a degree in sociology in the midst of the great recession. Went to work for the government four years later. Got my first mortgage at age 39. Paid off my condo and took voluntary early retirement after 28 years with the government at age 56. Never had kids. Married after I retired. Eventually hated my job in HR where I wound up, too much mediocrity to contend with but it provided a great salary, benefits, health insurance and retirement. Never could figure out why everybody doesn't work for the government. The government is still hiring and 30 years from now those young people hired now will be retiring. My hat's off to them, it's not easy, just better than the alternative. Back in the day I would have loved to have gotten a job as an auto assembly worker but never had that opportunity. It's probably a good thing that I didn't. Life is like that.
9
And where do people living in genteel poverty fit into all of this?
If class were determined by education and cultural tastes, then I would be upper class. I have an Ivy-League MA, two masters degrees, and graduate software training. I have "high-brow" cultural tastes, e.g., serious classical music, good literature. I speak several languages. I lived in several different countries and traveled to many more (years ago, when I had more money).
However, by the criterion of income, I am lower class. I live below the poverty line on social security. I lack money for basics (e.g., dental care) and have virtually no discretionary income. I do not eat out, go to concerts, travel, etc.(The NYT is one of my few indulgences.)
So what does class even mean?
If class were determined by education and cultural tastes, then I would be upper class. I have an Ivy-League MA, two masters degrees, and graduate software training. I have "high-brow" cultural tastes, e.g., serious classical music, good literature. I speak several languages. I lived in several different countries and traveled to many more (years ago, when I had more money).
However, by the criterion of income, I am lower class. I live below the poverty line on social security. I lack money for basics (e.g., dental care) and have virtually no discretionary income. I do not eat out, go to concerts, travel, etc.(The NYT is one of my few indulgences.)
So what does class even mean?
34
Sounds like your two master degrees were not in anything useful and you are chasing a passion instead of a career that pays. Choices, choices...
It means get with understanding your connection with people who are in the same insecure monetary situation and forget 'culture', at least in this context. The fact that you know about classical music and literature doesn't mean squat as to your actual class. Lesson #1: That stuff, in the political, economic context, is window dressing made to distract you from the fact that you are poor and your material concerns are in line with others similarly impoverished.
1
There's the socio- and then there's the economic. Hard, when they don't match.
1
Barbara Ehrenreich wrote an excellent book about middle class anxiety, called "Fear of Falling." That was about 1990, but it is even more relevant now than it was then.
16
Does a sense of economic security slowly eroding reflect my experience?
No. Early notes of my story could have been used by Paddy Chayefsky in the early '70s when writing "Network" as an angry film about angry TV shows for angry people.
Then it was Arabs. Today monetary econ illiterates are yelling and voting for a handover to China. No one dare mention the wet paper link in the paper chain -- the judiciary.
Pew is a two syllable word. "Recover from the recession" denies STEM, structural change, stagflation and the global credit freeze.
NYT writes good payday and car loan series that are superficial as are comments. Subsurface series are needed re G-20 banks and central treasuries borrowing carry trade monies and hot capital short term to finance long term notional and real government employee obligations while corporations do the same.
Talk about a superhighway road to perdition.
I am the boganbuster reporting for duty.
No. Early notes of my story could have been used by Paddy Chayefsky in the early '70s when writing "Network" as an angry film about angry TV shows for angry people.
Then it was Arabs. Today monetary econ illiterates are yelling and voting for a handover to China. No one dare mention the wet paper link in the paper chain -- the judiciary.
Pew is a two syllable word. "Recover from the recession" denies STEM, structural change, stagflation and the global credit freeze.
NYT writes good payday and car loan series that are superficial as are comments. Subsurface series are needed re G-20 banks and central treasuries borrowing carry trade monies and hot capital short term to finance long term notional and real government employee obligations while corporations do the same.
Talk about a superhighway road to perdition.
I am the boganbuster reporting for duty.
3
My wife and I do fine for a city like Minneapolis but we are definitely not where our parents were at our age. I can't begin to imagine how people with children get along today.
While I consider us very lucky, we're not really gaining ground at 2% annual raises (which I know is more than lots of people, so again, very lucky). We live frugally, we rarely take vacations, we have one car.
Retirement as our parents know it seems to be a thing of the past. We have modest 401ks but we assume we'll need to supplement. We have a small rental property, so ....
I ditched the crummy corporate job and joined the International Brotherhood of Electrical Workers. I am now an apprentice electrician. This was my first week on the job and I'm already so happy I could cry.
I love the work and I feel good about the benefits and honest-to-goodness actual pension, but the best thing is being a part of something that built the middle class, not ripped it apart.
While I consider us very lucky, we're not really gaining ground at 2% annual raises (which I know is more than lots of people, so again, very lucky). We live frugally, we rarely take vacations, we have one car.
Retirement as our parents know it seems to be a thing of the past. We have modest 401ks but we assume we'll need to supplement. We have a small rental property, so ....
I ditched the crummy corporate job and joined the International Brotherhood of Electrical Workers. I am now an apprentice electrician. This was my first week on the job and I'm already so happy I could cry.
I love the work and I feel good about the benefits and honest-to-goodness actual pension, but the best thing is being a part of something that built the middle class, not ripped it apart.
33
Depends on how we define the American dream: eating food shipped from around the world, a garage crammed with stuff and two cars OR access to good schools, healthcare, job growth, more walking than driving and strong civic involvement? Part of this is re-thinking our values.
21
The problem with today's "middle class" is they expect an upper class life style that is unrealistic. Take a look at the photo in the article. Ignore the pool and focus on the house. It was very simple compared to today's abodes. People now expect much more than that type of house. Also, the article ignores the crushing tax burden's place at the local level. When your real estate tax bill is 50% or more compared to your mortgage payment, that is a problem.
12
Then stay out of New Jersey and states with Blue leadership and majority voters.They suck hard working people dry with their emphasis on equality of outcome and little opportunity.
1
It is suburbia that has done us in, mostly. Growing up, we had a lovely house in a small town, where we walked everywhere, and didn't need a car at all, for many years in the late 40's and early 50's. Then, it was only one. If we had school events, the school bus took us, or we walked. Now, we need the equivalent of a school van to get our kids everywhere, costing what used to be the price of a house. Where we had one TV, now we have electronic gadgets and monthly plans to pay for servicing them that eat up plenty of discretionary income. Those two items alone: second cars/vans/trucks, and cable/cellphones, make the difference for lots of people between making it or not--and no one really notices it.
I'm sitting here stunned...middle class? i can't believe it. to me my family is middle class. my dad works and makes enough to support us, and my mom is a SAHM. my sister and i went to really good private schools and we have a decent car, apartment in a nice neighborhood, and take annual vacations. eat out a couple of times a week, have gym memberships, nothing i thought was too extravagant until i read these comments.
great health insurance, so great in fact that my dad (who's worked at the same company for over 25 years) is currently recovering at home from a serious surgery that left him unable to go into the office for 2 months and doesn't owe the hospital a cent. and he's not getting his pay cut for being unable to work either-just the opposite. he gets a daily quota of money (not much but it adds up over 2 months) for being unable to work due to medical reasons. he has a Ph.D but my mother does not have higher education, yet i have, thank goodness, in my 20 years of life never felt what "economic instability" is really like
whats the catch? we live in a supposed "third world country" that undeniably has corruption, crime and that has been at war for the past several decades with insurgent forces (guerrilla). and somehow, the government here is STILL somehow doing a better job at taking care of its people than the U.S.A, that great nation of opportunity. i'm speechless.
shame on the american government for doing this to their people.
great health insurance, so great in fact that my dad (who's worked at the same company for over 25 years) is currently recovering at home from a serious surgery that left him unable to go into the office for 2 months and doesn't owe the hospital a cent. and he's not getting his pay cut for being unable to work either-just the opposite. he gets a daily quota of money (not much but it adds up over 2 months) for being unable to work due to medical reasons. he has a Ph.D but my mother does not have higher education, yet i have, thank goodness, in my 20 years of life never felt what "economic instability" is really like
whats the catch? we live in a supposed "third world country" that undeniably has corruption, crime and that has been at war for the past several decades with insurgent forces (guerrilla). and somehow, the government here is STILL somehow doing a better job at taking care of its people than the U.S.A, that great nation of opportunity. i'm speechless.
shame on the american government for doing this to their people.
51
Jules: Well said. Sad, but well said.
1
The reality of wage stagnation hit me when I saw the job I left in 2002 advertised in 2015 at the same salary from 13 years ago-not a penny more. This was a middle-management non-profit job in the cultural sector in NYC. I would not be able to live today on the salary I made over a decade ago, which allowed me a one-bedroom apartment to myself in Brooklyn. A position that should have grown with the field or with a long-term employee has instead become a revolving door at entry level wages but requiring managerial skills. This is the case for job millions of times over. Unless you are a coding wizard and can create secret algorithms for Facebook post popularity.
15
I think this is the definition of cognitive dissonance: "Nearly nine out of 10 people consider themselves middle class...regardless of whether their incomes languish near the poverty line or skim the top stratum of earners." Perhaps it is my age (55) or Catholic upbringing, but I remember poverty was once considered a condition of social and political circumstances; not just a moral failing. Michael Harrington's "The Other America" was required reading, and Martin Luther King's Poor People's Campaign in 1968 gave voice to those who lacked influence. Fifty years later we now have a war on poor people, where "income insecurity" is too polite a euphemism for the indignity that is heaped on the struggling poor. Look no further that the payday loan or dollar store in every strip mall for evidence of the "other America" today.
17
Remarks I posted a couple of years ago about a similar NYT article bear repeating. My grandfather, born in the late 19th c., intelligent but without even a highschool education, worked for NYC newspapers, becoming a press foreman. My grandmother was a housewife, raising two kids. They owned a well-built two story brick townhouse in Bay Ridge, Brooklyn, a pleasant neighborhood quite close to a leafy park, and beyond that the Narrows. (Pre-Verrazano bridge.) In summer during the 20s & 30s, grandma and the kids would escape the heat at the little "bungalow" they'd bought in the Catskills, and my grandfather would train up from the city for weekends. The family car was never more than a few years old. Both children graduated from college, became military officers during the war, and earned graduate degrees, my uncle becoming a successful NYC lawyer. All this on the equitable wages of one man, which would have been impossible without his UNION. Of course under Roosevelt and until Reagan (and Clinton) the NLRB had teeth, there was little 1%-sponsored outsourcing of jobs to Asia and elsewhere, higher education (my field) was supported, etc. The central cause of our woes is outsourcing, its treasonous proportions eroding almost everything for most citizens. It strikes me how prescient, aware, and courageous were so many of our forebears, even without much formal education. And how lulled, stupefied, and propagandized are so many Americans who work for a living now.
39
The decline of the wealth of the middle class began in 1973. But pointing out Reagan makes for a good polemic.
1
What you have reported in this very well written article agrees with what I have witnessed & personally experienced. I only found fault with one fact and it was the time scale that the slide in incomes started. You chose 2000 but the record shows that income stagnation began but was not seen as a trend in the late 70s.
The big question is why? What did we do in terms of private sector & government policies to trigger & perpetuate stagnant incomes for most & begin the concentration of incomes & wealth that we have now.
Clearly, we changed tax policy to favor the very high income earners. Tax rates were not treated the same for wages & salaries as for the so called income from investments. Moreover, we now know that the cap on payroll tax for social security insurance is regressive. We also allowed & sometimes incentivized off-shoring of earnings to avoid taxes & we have steadily chased low wage workers to manufacture & ship to our retail outlets to provide goods to our consumers, who could only afford the bargain goods because their wages were stagnant. From time to time, global oil suppliers took a huge bite out of our economy making goods & transport cost more. It seems criminal & unpatriotic but the very wealthy benefactors used their political clout to influence the Congress & Government regulators to favor monopoly and unfair taxes. We can't seem to change a clear drift to oligarchy & it has had a slowing effect on innovation & competitiveness.
The big question is why? What did we do in terms of private sector & government policies to trigger & perpetuate stagnant incomes for most & begin the concentration of incomes & wealth that we have now.
Clearly, we changed tax policy to favor the very high income earners. Tax rates were not treated the same for wages & salaries as for the so called income from investments. Moreover, we now know that the cap on payroll tax for social security insurance is regressive. We also allowed & sometimes incentivized off-shoring of earnings to avoid taxes & we have steadily chased low wage workers to manufacture & ship to our retail outlets to provide goods to our consumers, who could only afford the bargain goods because their wages were stagnant. From time to time, global oil suppliers took a huge bite out of our economy making goods & transport cost more. It seems criminal & unpatriotic but the very wealthy benefactors used their political clout to influence the Congress & Government regulators to favor monopoly and unfair taxes. We can't seem to change a clear drift to oligarchy & it has had a slowing effect on innovation & competitiveness.
16
I went into medicine because I wanted security. Now I've got a $300K job, first-dollar health insurance and a pension. But the devil's in the details. I don't like to take on debt, so I had to accept $70,000 from my family to buy in to my practice. I have a son who needs private school in order to thrive. I have a live-in maid who makes more than you could believe, and I still need to hire babysitters!! I'm so stressed out I need a weekly massage, a therapist and several weeks a year with my friends in Hawaii just to keep going. I'm worried about the future too: my pension will only pay half my highest salary. I can't imagine what I'm going to do being in my fifties and living on a fixed income of $150,000 per year. Thanks NYT for shedding light on the dilemmas the middle class faces today.
2
While I feel your pain, the O.C. is an expensive place = it is a bit hard to relate to the weeks-long Hawaii vacations, live-in maid, weekly massage and anticipated fixed income of $150,000 in your 50's. I am 60 and I have worked for the same company for 34 years (I try not to say that out loud or mention at company events). While I am a professional who has not seen a real raise in 7 years, my husband is a tradesman. At 63 he is pretty physically worn out . NEWS FLASH -- 60 is not the new 50 unless you have had an office job. Our children are in their 20's. There feet are not fully planted. All I can do is keep working and pray. We have never really taken a vacation. We wonder who does.
1
Sarcasm is difficult to convey in the written medium.
I can't tell if this post is a spoof or not: "my live in maid....weekly massage....several weeks in Hawaii...." had to accept 70K from my family.....
At 70, I teach institutionally and privately 60 hours a week by the clock, and am awfully happy I still have my health and can do it.....it's in your head.
At 70, I teach institutionally and privately 60 hours a week by the clock, and am awfully happy I still have my health and can do it.....it's in your head.
2
With so many people struggling to make ends meet it baffles me that even thinking about increasing taxes seems to be taboo. What's especially hard to understand is that multi-millionaires and above are seemingly immune to even a 1 cent tax increase.
People need to learn about the candidates and vote for people who will end the madness.
People need to learn about the candidates and vote for people who will end the madness.
14
I willingly and happily pay taxes. It is the responsibility required of a democratic society. There should be no cap on SS contributions.
They just increased taxes on incomes and capital gains for the wealthy two years ago, from 15% to 23.8%. That's more than a 50% increase.
I know this is my second comment so maybe it wont end up online. But I have been thinking all day about this. A big part of the problem is the term "middle class". In the 20th century if you earned in the middle of the income distribution then you had a chance at the "American Dream". The reality is that "middle" or median income is essentially poor. There is no way a family can buy a new car, a house and send even one child to college on the "median' income.
To be "middle class" in terms of owning a nice home having a vacation and sending a kid to college (with out 100K+ in loans) you need to be in at least the top 1- 5% of income earners.
The middle class of the 20th century does not exist anymore and we should no longer be using that term.
There is an oligarchy (economically and politically) of the top 0.1% and then there is everyone else.
To be "middle class" in terms of owning a nice home having a vacation and sending a kid to college (with out 100K+ in loans) you need to be in at least the top 1- 5% of income earners.
The middle class of the 20th century does not exist anymore and we should no longer be using that term.
There is an oligarchy (economically and politically) of the top 0.1% and then there is everyone else.
15
Just so
2
totally agree
1
In 1979 President Carter warned Americans that, unless changes were made, each succeeding generation of Americans would be worse off than the one before it. That was a 180 degree turn around from history. Americans scoffed but it has been all downhill ever since (with the exception of the Clinton boom). The Great Recession of the G.W. Bush administration sealed the deal.
As the Great Recession was not a cyclical recession but was a man made liquidity crisis a full recovery would take more than a decade. We're not there yet. By the time we recover the American worker will have a wage that is competitive with much of the world although worker skills will not be competitive. In addition the population is aging.
Americans don't have to look far to find someone to blame. In a democracy the people get what they deserve. Sometimes that's not what they wanted. The world has been slanted to favor the few. It's what we voted for. The crumbs will trickle down.
As the Great Recession was not a cyclical recession but was a man made liquidity crisis a full recovery would take more than a decade. We're not there yet. By the time we recover the American worker will have a wage that is competitive with much of the world although worker skills will not be competitive. In addition the population is aging.
Americans don't have to look far to find someone to blame. In a democracy the people get what they deserve. Sometimes that's not what they wanted. The world has been slanted to favor the few. It's what we voted for. The crumbs will trickle down.
7
You are revising history. Carter said we must make do with less. With the demise of the manufacturing sector say good bye to your post War Golden Age. In the 1950's 90 plus percent of automobiles sold in this country were made here. Now the number is 45% if you count transplant. The trend is the same across the manufacturing sector. We aren't purchasing off-shored good, we are purchasing foreign manufactured good. This trend is moving into building materials, clothing and good. BTW, Clinton signed NAFTA and normalized trade relations with China as well as signing the repeal of Glass-Steagall. He sufficiently buried the FDR years.
Just how the Koch Bros. planned it.
25
More likely George Soros. His wealth comes from currency manipulation not producing goods like the Koch family. .
An unaffordable housing market might have something to do with it too - along with massive offshoring of jobs, fewer decent jobs, high medical costs, college costs, heck, even nursery school or child care.
Those of us who are old enough all remember when it was just our fathers who worked, and were able to provide the family with a secure life including home ownership. An iphone and a computer just don't make up for it.
My apartment in the East Village was $60 a month in 1968. I wouldn't hazard a guess as to how many thousands a month it costs now (and I hear the bathroom is still in the building's hallway.)
No, it isn't just a sense that things have gone awry - things have gone awry.
Those of us who are old enough all remember when it was just our fathers who worked, and were able to provide the family with a secure life including home ownership. An iphone and a computer just don't make up for it.
My apartment in the East Village was $60 a month in 1968. I wouldn't hazard a guess as to how many thousands a month it costs now (and I hear the bathroom is still in the building's hallway.)
No, it isn't just a sense that things have gone awry - things have gone awry.
11
The middle class has always been the home of anxiety, consumerism and tranquillizers. Job insecurity has made things worse, as have the obvious preferences for cheap foreign laborers among the employer class. Mix and stir, sprinkle idiotic politicians over the top, and bake.
7
Another important change in the economic security of the middle class has been the disappearance of the traditional defined-benefit pension plan. At 60, I'm lucky enough to have one although my company froze it prematurely and it is no longer available to new hires. My kids are unlikely to ever have one. Couple that with the uncertainty over Social Security and Medicare caused by the polarization of our national politics, and now you have a significant portion of the middle-class's safety net gone. So today's generation has to provide for their retirement on their own out of the income that's no better than the last generation's.
18
you are not necessarily lucky. if inflation heats up you will truly suffer, unlike federal government whose pension are indexed to inflation.
1
I was self employed for most of my life. Who do you think provided for my retired years?
1
I think that this article points to another big realization that the tern "middle class" is as undefined as ever.
Here we have people making 200K+ and feeling middle class, while I know friends living in Los Angeles with a fraction of paycheck living richer, happier, and more fulfilled lives.
I myself am lucky to have a low six figure salary out of college. So my parents call me rich. While I have to remind them across the street from my tiny apartment, cozy looking homes go for $2mil and up.
I think we live in a fast changing global economy now, full of gaps in the ideas of what security actually looks like. I myself don't know the answer, so I can't help but to always look at the best way I can improve my future while I have time.
Here we have people making 200K+ and feeling middle class, while I know friends living in Los Angeles with a fraction of paycheck living richer, happier, and more fulfilled lives.
I myself am lucky to have a low six figure salary out of college. So my parents call me rich. While I have to remind them across the street from my tiny apartment, cozy looking homes go for $2mil and up.
I think we live in a fast changing global economy now, full of gaps in the ideas of what security actually looks like. I myself don't know the answer, so I can't help but to always look at the best way I can improve my future while I have time.
5
While I agree that Republican policies have greatly favored the rich for decades, both parties, and the whole American elite, have also been united behind globalism - which in practice means moving Western technology and jobs overseas to low wage countries, and when they can't do that, increasing immigration from low wage countries, legal or not, to create more wage competition here.
When I was young, software was a career, but no longer. Now typically by the time an engineer is 35, he will be fired and replaced by a younger, cheaper worker from Asia on an H-1B high tech visa. The billionaires demand more visas even as they are massively laying off American workers [many of Asian descent themselves]. This does not improve quality, a lot of valuable experience is thrown away, but it looks good on the balance sheet and pleases the bean counters and Wall Street.
Venture Beat 1/20/15 says: 'These [tech] companies are making a choice. They’re deciding that it’s faster and cheaper to chuck people overboard and find new ones than it is to retrain them.'
Google CEO Eric Schmidt [worth $8 billion] was just in DC, begging for more H-1B visas; he just can't get good help. But a new book by Google HR chief Laszlo Bock reveals:
"Google receives more than two million job applications from around the world each year, hiring several thousand of those candidates."
But the elite listens to Eric and Google; that's where the money is.
When I was young, software was a career, but no longer. Now typically by the time an engineer is 35, he will be fired and replaced by a younger, cheaper worker from Asia on an H-1B high tech visa. The billionaires demand more visas even as they are massively laying off American workers [many of Asian descent themselves]. This does not improve quality, a lot of valuable experience is thrown away, but it looks good on the balance sheet and pleases the bean counters and Wall Street.
Venture Beat 1/20/15 says: 'These [tech] companies are making a choice. They’re deciding that it’s faster and cheaper to chuck people overboard and find new ones than it is to retrain them.'
Google CEO Eric Schmidt [worth $8 billion] was just in DC, begging for more H-1B visas; he just can't get good help. But a new book by Google HR chief Laszlo Bock reveals:
"Google receives more than two million job applications from around the world each year, hiring several thousand of those candidates."
But the elite listens to Eric and Google; that's where the money is.
16
the lead-in photo (of a small family beside a large blue swimming pool) is not at all a mid 20th century family .......rather, a high level privilege scene not possible for any but the top tier upper middle class. It was not the ordinary at all.
18
but at least hedgefund managers are taxed less, jobs can safely be sent overseas, and unions are busted nearly to extinction. The "reagan revolution" with its voodoo economics and the bipartisan fealty to wall street , combined with half-wit governors who have claimed that everything from laying off state workers to legalizing dove hunting were important to "job creation." (seriously, you could make this stuff up, but they didn't). The electorate has fallen asleep while a partnership of corporate interests and economically-irrelevent "values voters" have kept the economy from producing any real growth for decades. Heck, at least Iraq is free and peaceful!
14
World unrest and hateful ideologies contribute mightily to our stress. If only we could turn our attention to improving our own country - read infrastructure, schools, health care for all.
13
I just moved from Seattle to Upstate NY. People ask why I did this especially since my family is well off, to a point that I never have to work a day in my life if I wanted to live off my parents' past labour. But I have to say that life here is easier - my income is higher than it would've been in Seattle and I have lot more disposable income and we hope to be entirely debt free within a year or so (and also my wife no longer needs to work). I agree with many commenters who say that what matters is where you live and how much you make there. The people making $250K or so in NYC could live in royalty here in Youngstown NY. We're only an 1-2 hours from Toronto which is as cosmopolitan a city as some of the bigger ones.
I think more flexibility in telecommuting and productivity measurement could aid in making easing some of this. This way people spread their wealth around as well.
Though I fear for the entire limitless growth model of capitalism. It is unsustainable. And when exponential effects magnify, it is like a dam that has burst - hard to contain.
I think more flexibility in telecommuting and productivity measurement could aid in making easing some of this. This way people spread their wealth around as well.
Though I fear for the entire limitless growth model of capitalism. It is unsustainable. And when exponential effects magnify, it is like a dam that has burst - hard to contain.
2
This article is the story of my financial life. My husband and I, in our late 40s and early 50's, are solidly upper middle class if one looks at our current income alone. But the key is "current" income. We relocated from another state just before the economic downturn in order for him to rebuild his career after he took a work break in order to assist with the care of a dying family member. While the move was good for my husband's career and salary, my career then took an income and professional hit and I was stuck for 5 years in a dead in clerical track job where my income could potentially stall or fall even further. We relocated again for so that I could attend grad school and have more job opportunities. My husband found a new position before quitting after a year due to working conditions. We are both now employed. I make more than ever but my husband's salary has stalled out, with no increase in 8 years despite stellar work. We don't feel any permanency in our jobs. My job is project focused and ends in a year with the project completion. My husband's is subject to political whims and his position or department could be eliminated with the next budget cycle. Do we buy a small home? Does he return to school for another credential (we have 6 degrees between us!)? Do we look look for jobs in yet another state? We now have student debt, credit card debt, have downsized our living arrangements twice? I even feel guilty about a 3 day anniversary trip.
9
Decades of right wing toxicity towards concepts once commonly held by a majority -"everybody deserves a chance if they will work hard", and that "We may be different, but we are all Americans, and we are in this together" have played a gigantic role in eroding the natural optimism of our country. Destroying the middle class living was not the goal of the wealthy for some reason when I was a kid. Nihilists and outright anti-intellectuals are running the show in the conservative world and it doesn't look like they have any long-term interest in the rest of the country. They probably believe they will live forever.
But for Irony, poor old America can't be beat: I just read that the NRA won't allow the pins in guns for THEIR safety at their big shindig. Wow. Old man LaPierre won't have to wear his flak jacket like he does when speaking to the press.
But for Irony, poor old America can't be beat: I just read that the NRA won't allow the pins in guns for THEIR safety at their big shindig. Wow. Old man LaPierre won't have to wear his flak jacket like he does when speaking to the press.
9
That is a story put out n=by the NY Times that is untrue. The convention centers that the NRA uses are the determiners of firearms policy. There are two venues in Nashville. One allows firearms and one does not. The NRA is using the latter one. Display guns by manufacturers are usually incomplete. Guns are not sold at the convention. When the convention was here in Charlotte the city permitted no guns in firing condition to be on the premises. The NRA does not tell members they cannot come without their firearms. It is the cities that own the venues that do.
When I was young and ignorant, I considered myself, and my immediate and extended family, to be decidedly middle-class. With a home, a car, a stay-at-home mom, and a skilled father (tailor) with two jobs, what else could we be, except immigrants who had found the American dream? But after college, the message I was getting was that we were actually lower-middle class, like most of our Bronx neighbors. And I never left that demographic. A decent salary and a stable job could not get me to "move on up" to Manhattan, a part of the city I will never be able to afford (I like to eat). Now, facing retirement, with my own modest home and a pension around the corner, I know that I will never be middle-class, just a non-working (or part-time working) member of the working classes: sort of comfortable, sort of secure, sort of accepting of the fact that some dreams are called just that for a reason.
8
In my experience, there are two classes: the working class and the capitalist class. If one must work to pay bills over the long run (20 or more years), then one is in the working class. If one need not (even if one choses to anyway), then one is in the capitalist class.
Income is comparatively irrelevant.
Income is comparatively irrelevant.
5
The comments here from younger people (my children's ages, actually) are alarming and depressing, but not surprising. They do not augur well for our country, either. Making what seems like a lot of money is no longer any indication of economic comfort or security, what with huge college debt, the cost of housing, school fees for kids, high medical insurance, child care, no more social contract--the list never ends. Add to that all the things we pay for that we didn't fifty years ago--television, smart phones, internet among them.
Maybe it's time to pause and re-read The Solid Gold Trap, an old short story by John D. MacDonald. Our government isn't likely to step up, do the right thing and re-balance the economic scales, not with the Koch brothers buying elections. But that doesn't mean we have no choices about how we engineer our own lives.
Maybe it's time to pause and re-read The Solid Gold Trap, an old short story by John D. MacDonald. Our government isn't likely to step up, do the right thing and re-balance the economic scales, not with the Koch brothers buying elections. But that doesn't mean we have no choices about how we engineer our own lives.
6
We're an odd people in the US. I am middle class, raised in the middle class. But "class" was never an issue as such growing up. My parents were professors back in the'50's and my dad worked essentially 3 jobs to pay the bills. But we were "rich" in the sense that we were happy, we knew interesting people. My brother and I never thought of ourselves as missing anything. But things are different now and I think for 2 reasons. First, any sense of opportunity just isn't the same as it used to be. Second, we have changed. "More" and "faster" are too much a part of our brains. We're losing our sense of collective self and a realization that we're all part of the main.
12
For the middle class, the money will flow through fingers like water.
Don't you wish a bunch of accountants would get into a room and figure out how a consumer based market economy can function when a significant amount of essential products and services consumed is produced by companies that employ very few people?
This tiny group of providers must at some point reciprocate by consuming equivalent amount produced by the majority. It is hard to believe this balance can be achieved if most labor is concentrated in service economy. How much service can the wealthiest 1% physically consume? How can the free market economy be sustained in the presence of extreme wealth inequality? http://economy.money.cnn.com/2013/03/08/wealth-video/
Consider that without a balanced exchange of products of labor, the majority will deplete their money and then equity. If most of population was occupied with giving each other haircuts and foot massages, they would still eventually deplete all their savings on food, shelter, medicine, utilities, and other essentials. Once the savings are gone, the economy would grind to a halt. Issuing credit is a way to sustain the imbalance, but it also creates a perpetually indebted society regardless of employment status.
The only effective ‘job creator’ in 21st century is bureaucracy. Just look at the explosion of administrators and managers in health, education, government, banks.
http://ideabits.blogspot.com/2014/05/job-market-pyramid.html
Don't you wish a bunch of accountants would get into a room and figure out how a consumer based market economy can function when a significant amount of essential products and services consumed is produced by companies that employ very few people?
This tiny group of providers must at some point reciprocate by consuming equivalent amount produced by the majority. It is hard to believe this balance can be achieved if most labor is concentrated in service economy. How much service can the wealthiest 1% physically consume? How can the free market economy be sustained in the presence of extreme wealth inequality? http://economy.money.cnn.com/2013/03/08/wealth-video/
Consider that without a balanced exchange of products of labor, the majority will deplete their money and then equity. If most of population was occupied with giving each other haircuts and foot massages, they would still eventually deplete all their savings on food, shelter, medicine, utilities, and other essentials. Once the savings are gone, the economy would grind to a halt. Issuing credit is a way to sustain the imbalance, but it also creates a perpetually indebted society regardless of employment status.
The only effective ‘job creator’ in 21st century is bureaucracy. Just look at the explosion of administrators and managers in health, education, government, banks.
http://ideabits.blogspot.com/2014/05/job-market-pyramid.html
2
Having lived in Europe for 12 years, I can say that moving back to America with my family has shown me how easy it would be to alleviate most of the anxiety the middleclass is feeling: Socialize healthcare and education. In Europe, with my health costs covered, I did not fear the expense of falling ill or my wife being pregnant, or any other medical bills. Also, I am thankful that my children are German citizens as, if Germany can continue to do so, my children will go to the university for free. That said, coming home has added all new level of stresses when one is paying $20K for a family plan and needs to put aside thousands a dollar a year just to cover a college education that will more likely saddle my children with horrendous debt and nothing else besides a good education (one hopes). I paid 50% taxes in Germany for this peace of mind and 25% taxes on capital gains. I would be willing to do this here for the same. Would you?
35
No. Fund your kids on your own - don't ask me to help you pay for your choices.
The thing that is rarely discussed is the crippling tax burden that middle income people have, without corresponding public benefits. If you live in NYC, you have federal income tax, state income tax, city income tax, sales tax, social security tax and medicare tax, all of which eat up more than 60% of gross income. However, unlike the European nations, we must pay ruinous amounts for college tuition for our children without any chance of significant financial aid. We also have to pay for health insurance. That is why saving any money is difficult, even if you are earning $200,000 a year.
10
In Europe people actually get something for their taxes. But here, we get wars.
4
Why 'insecure'? Because the social contract has been broken. Employment is largely 'at will.' Employers have no qualms about tossing long-time employees to the curb with the garbage. Anyone remember pensions? Now it is sink or swim, do it yourself, stash money in the 401k and hope you do not get caught in a stock or bond market downdraft just when you need to rely on savings to survive in retirement. College education? I went to Columbia in the late 60s - when the tuition was $2,200 a year. Multiply that by 20 to get today's tuition. Good luck trying to pay that with 'work study' jobs. No, you will take on massive loans that will leave you with crushing debt for most of your adult life.
I have a professional degree, earned a multiple six figure income for over 20 years, own a home and two cars (over a decade old) free and clear, have a sizeable retirement fund and ample savings for my child's undergraduate education. Zero consumer debt. Yet I wake up every day, now pushing 65, and wonder when, if ever, I can afford to stop working and "retire." It is impossible to draw a reasonable income from savings when interest rates are near zero - thanks, Fed. SS benefits are well below the poverty line - and may evaporate before I ever draw them anyway. And pray a medical emergency doesn't wipe out my savings, even with health insurance.
I am no doubt better off than 95 out of 100 Americans, yet I am deeply concerned because there is no safety net. Social Darwinism now rules.
I have a professional degree, earned a multiple six figure income for over 20 years, own a home and two cars (over a decade old) free and clear, have a sizeable retirement fund and ample savings for my child's undergraduate education. Zero consumer debt. Yet I wake up every day, now pushing 65, and wonder when, if ever, I can afford to stop working and "retire." It is impossible to draw a reasonable income from savings when interest rates are near zero - thanks, Fed. SS benefits are well below the poverty line - and may evaporate before I ever draw them anyway. And pray a medical emergency doesn't wipe out my savings, even with health insurance.
I am no doubt better off than 95 out of 100 Americans, yet I am deeply concerned because there is no safety net. Social Darwinism now rules.
17
I guess Dan Sichel forgot the pair of recessions
that began fall of 1989 and lasted thru mid 1994. Or the post dot com crash from early 2000 till mid 2004.
that began fall of 1989 and lasted thru mid 1994. Or the post dot com crash from early 2000 till mid 2004.
2
Fully agree with all the comments blaming Reaganomics for much of the current state of affairs in America.
However, I believe I remember from Jeffrey Sachs' course on sustainability that the global economy is seeing convergence of per capita incomes, largely due to the tremendous rates of growth in China, India and other developing nations. So, globally, the middle class is growing, while in some western industrialized nations, lime the U.S., incomes and wealth are diverging.
However, Americans are still far wealthier per capita than all but a few Scandinavian and other small economies. While it is true that many Americans are suffering from unemployment, exploitation, and insecurity, it is also true that we're still far more fortunate on the whole than most nations' citizens.
Just saying'...
However, I believe I remember from Jeffrey Sachs' course on sustainability that the global economy is seeing convergence of per capita incomes, largely due to the tremendous rates of growth in China, India and other developing nations. So, globally, the middle class is growing, while in some western industrialized nations, lime the U.S., incomes and wealth are diverging.
However, Americans are still far wealthier per capita than all but a few Scandinavian and other small economies. While it is true that many Americans are suffering from unemployment, exploitation, and insecurity, it is also true that we're still far more fortunate on the whole than most nations' citizens.
Just saying'...
8
Without single payer national health care and subsidized higher education, US citizens are not better off than other nations' citizens.
1
I have a different take. I know that health care costs have skyrocketed and government policies have favored the rich, but I've met the enemy and it is us.
Around here, where there is an abundance of build-able land, houses have gotten bigger and nicer thru the decades. An obvious, dramatic increase in square footage, ceiling height, roof complexity. Anybody want to tell me that they don't have twice or three times the kitchen that their parent had. And cars are bigger and nicer too, (I have a 1961 Ford f-250, and it's smaller than a new Toyota Tacoma). Television was free back then and is still worthless today but people are addicted and will pay anything for cable. And cell phones cost about $40,000 per person per lifetime. That's gotta come out of something and it shouldn't be the kids education.
Most people bought everything with cash back then. They didn't hand money over the the banks for cars and other junk like that; now it's all about monthly payments. How about this idea, don't buy a car that you can't buy three of with cash if you had to.
Now you spend too much on mansion and junk and then whine about every tax and vote in anti-tax politicians and complain when the government isn't paying for education like they used to. And now your kids get to start with debt. It's going to be more difficult for them.
The saving grace is the increase in productivity and the fact that we can change government policy to our liking. We're the majority.
Around here, where there is an abundance of build-able land, houses have gotten bigger and nicer thru the decades. An obvious, dramatic increase in square footage, ceiling height, roof complexity. Anybody want to tell me that they don't have twice or three times the kitchen that their parent had. And cars are bigger and nicer too, (I have a 1961 Ford f-250, and it's smaller than a new Toyota Tacoma). Television was free back then and is still worthless today but people are addicted and will pay anything for cable. And cell phones cost about $40,000 per person per lifetime. That's gotta come out of something and it shouldn't be the kids education.
Most people bought everything with cash back then. They didn't hand money over the the banks for cars and other junk like that; now it's all about monthly payments. How about this idea, don't buy a car that you can't buy three of with cash if you had to.
Now you spend too much on mansion and junk and then whine about every tax and vote in anti-tax politicians and complain when the government isn't paying for education like they used to. And now your kids get to start with debt. It's going to be more difficult for them.
The saving grace is the increase in productivity and the fact that we can change government policy to our liking. We're the majority.
4
I'm a veteran. The reason I write here is that looking back on the 20th century our WWII veterans were taken care of by the strong economy. Powerful unions, meaningful upward mobility, and a tax system that was fair to all instead of just a windfall for the very rich. Affordable home ownership and affordable tuition. No wonder our veterans from Vietnam, the First Gulf War, and the past 13 years are treated so shabbily by the government. We are real expensive and we can't get those benefits anywhere else.
10
I am a true blue collar man. I am 51 years old and worked most of my life as a machinist. I watched my wages go down and the opportunities go away for the past 20 years. The wages right now as a machinist in my town are less than they were 20 years ago. I had five kids...I know, I know, at the time I still believed in the American dream. My oldest is 28 and I am NOT a grandpa. None of my kids can have kids, they are way too scared! I rent my home. I cannot ever afford to buy one and with wages going in a downward spiral, I switched gears and took up photography. I know that I have to work until the day I die, so I chose a job that is fairly easy, with a high return and one that lets me be creative. I work for cash:) Sorry Uncle Sam I cannot afford you any longer... I make about 30k a year and have no retirement. When I hear of "middle class" people making 6 figures a year and they are worried about their future, I chuckle. Good luck to you guys! For me, at least I know how to fish.
117
good for you. that is what bankrupting America. too many people looking for a handout from the government and a bloated bureaucracy.
"For me, at least I know how to fish. '
exactly.
as the old saying goes: give a man a fish
you feed for him a day.
teach him how to fish
you feed him for a life time.
the country needs more self reliant people like you, rather than a nation of whiners we have become.
lots of luck.
"For me, at least I know how to fish. '
exactly.
as the old saying goes: give a man a fish
you feed for him a day.
teach him how to fish
you feed him for a life time.
the country needs more self reliant people like you, rather than a nation of whiners we have become.
lots of luck.
1
Here, here!!
It's long gone. From Reagan onward, the elimination of the middle-class has been an aggressively pursued agenda. Welcome to the new serfdom.
15
My husband and I are in the top 15 or 20% of the country income wise. We have enough to afford a mortgage, one car payment, a dog, and we have enough discretionary income to afford a few luxuries, like my bi-weekly manicures and my husband's comics. But if anything happens to my job, or my husband's job, we're in trouble. We want a baby and aren't sure how we can afford child care, and I can't even think about college tuition without wanting to panic. My husband's car badly needs replacing but we're not sure we can afford another car payment.
Compared to my parents, I think we *may* be doing slightly better than they did at our ages, but I'm not wholly certain. We're certainly not doing better than my dad is now; he's financially comfortable and I have no idea how he managed getting there.
My husband's and my goal is to have enough to start investing money, to make our money work for us, but every time we think we're about to get there we have an unexpected crisis and the money gets spent on house repair, or vet bills, or car repair. We're treading water at this point, and we'd like to be able to start swimming but I have no idea how.
Compared to my parents, I think we *may* be doing slightly better than they did at our ages, but I'm not wholly certain. We're certainly not doing better than my dad is now; he's financially comfortable and I have no idea how he managed getting there.
My husband's and my goal is to have enough to start investing money, to make our money work for us, but every time we think we're about to get there we have an unexpected crisis and the money gets spent on house repair, or vet bills, or car repair. We're treading water at this point, and we'd like to be able to start swimming but I have no idea how.
4
@rebecca: I am not saying this to be mean in any way, but if you want to invest, you need to cut back on the discretionary-income luxuries. Especially in the situation you describe, where if anything happens to either of your jobs, you're in trouble.
I have no idea how much you have as discretionary income, but if you add up what you and your husband spend on his comics and your manicures, that money could be going toward the investing you want to do. And if you ever want to have a child, you'd have to do that kind of cutting back even more severely.
If you have 3-6 months' living expenses put aside, that's great. If you don't, it's a worthy goal.
I'm not saying it's easy, and I'm not saying it's fun; I'm just saying it *can* be done if you and your husband decide to do it, b/c the definition of "discretionary income" is that you have some extra money and can DECIDE what to do with it. There's nothing wrong with buying comics and getting manicures - but if something goes wrong economically for you, you'll wish you'd put that money in the bank. "Live below your means" is a very good rule.
I have no idea how much you have as discretionary income, but if you add up what you and your husband spend on his comics and your manicures, that money could be going toward the investing you want to do. And if you ever want to have a child, you'd have to do that kind of cutting back even more severely.
If you have 3-6 months' living expenses put aside, that's great. If you don't, it's a worthy goal.
I'm not saying it's easy, and I'm not saying it's fun; I'm just saying it *can* be done if you and your husband decide to do it, b/c the definition of "discretionary income" is that you have some extra money and can DECIDE what to do with it. There's nothing wrong with buying comics and getting manicures - but if something goes wrong economically for you, you'll wish you'd put that money in the bank. "Live below your means" is a very good rule.
2
"My husband and I are in the top 15 or 20% of the country income wise." "...we have enough discretionary income to afford a few luxuries, like my bi-weekly manicures and my husband's comics." This is an easy fix, give up "luxuries", your bi weekly manicures, sell husband's comics collection, stop eating out and cook at home. You are spending on frivolous things, wasting money on "stuff" which could be saved and invested. Stop all discretionary spending for a year and put every penny in the bank. Every time you think you might go for a mani/pedi, eat out, buy a comic book, instead put that money in bank account. At the end of the year you'll have a handsome (moderately large) sum of money. Open discount brokerage account and talk to the free (non commission based) adviser. Study the stock market, pick a few good stocks which people need like big pharma. Watch those stocks every day, read about them. When the price dips, BUY THOSE STOCKS and hold them. When price goes up, SELL. REPEAT. HAVE ACCOUNT SET UP AS drip (DIVIDEND REINVESTMENT). Second year do same saving trick and buy a Vanguard (or other fund) and hold it. REPEAT. Presto, in a couple of more years you will have a nice nest egg growing. You are frittering away all your disposable income.
2
Don't have children. You can not save and pay for children at the same time. Remember that you have to pay for childcare. You have enough paying for the dog.
1
People tend to forget how humbly the 'middle class' people lived 50 years ago. The tiny houses with one bathroom, the dial phone on the wall, the black-and-white TV, the single car in the garage, the inexpensive clothes and toys, cooking dinner at home - none of it was anything like today. But since everyone lived like that, and there were very few rich people, nobody realized that they could live like a Hollywood movie.
Now so many people live like a Hollywood movie, you don't have any choice. You must have an fancy house, an expansive car, and a big TV, because that's all that's available. You couldn't live like they did in the 50s if you wanted to.
Now so many people live like a Hollywood movie, you don't have any choice. You must have an fancy house, an expansive car, and a big TV, because that's all that's available. You couldn't live like they did in the 50s if you wanted to.
25
There were rich people but they were less likely to be conspicuous in their spending (like Warren Buffett living in a home well below what he could afford) and we weren't bombarded by media showing the truly stratospheric rich's spending.
1
@Jonathan: I don't buy your argument. "Now so many people live like a Hollywood movie, you don't have any choice"?? Really?? Then you've bought into the insanity hook, line & sinker! Maybe you don't think you have a choice, but I *know* I have a lot of choices and I make them based on my income, not on "keeping up with the Joneses."
If you honestly don't know anyone who lives modestly, you need to meet some new people, because there are plenty of people who know they DO have a choice - and they choose to live sanely.
If you honestly don't know anyone who lives modestly, you need to meet some new people, because there are plenty of people who know they DO have a choice - and they choose to live sanely.
1
Reading through these comments I do know that there are things our "greatest generation" did not have...tech toys.
My WWII vet dad would never have bought a $10,000 Apple watch or an iPhone 6. A 60 inch high def plasma TV in every room? No. We had one car, a station wagon for a family of seven. None of us children had a car...we walked or rode our bicycles everywhere. We had a landline phone on a party line of ten people on our farm. Just think of the expense of each child with a cell phone PLUS a laptop or tablet PLUS a desktop and printer.
We weren't on Little League teams or in soccer leagues with uniforms and coaches. It was pick-up ball in empty lots with second hand equipment.
Kids didn't wear name brand clothes...our mom made ours on sewing machines. $300 Air Jordans? Hardly..more like $10 Keds or Red Ball Flyers...or Buster Brown shoes. These were parents who had lived through the Great Depression and War meant Victory gardens and we canned vegetables.
My mom had the same pots and pans from her early years..now we have a Food Network, so each home has incredibly expensive matching kitchenware, a dishwasher, a Cuisinart, wok, a device for every possible kitchen task...and we barely even cook anymore! But we have giant capacity double door refrigerators, Viking Stoves, ovens, large capacity computerized washers and dryers...when's the last time you saw clotheslines?
Look at our homes? Do we REALLY need 6,400 sq foot houses?
My WWII vet dad would never have bought a $10,000 Apple watch or an iPhone 6. A 60 inch high def plasma TV in every room? No. We had one car, a station wagon for a family of seven. None of us children had a car...we walked or rode our bicycles everywhere. We had a landline phone on a party line of ten people on our farm. Just think of the expense of each child with a cell phone PLUS a laptop or tablet PLUS a desktop and printer.
We weren't on Little League teams or in soccer leagues with uniforms and coaches. It was pick-up ball in empty lots with second hand equipment.
Kids didn't wear name brand clothes...our mom made ours on sewing machines. $300 Air Jordans? Hardly..more like $10 Keds or Red Ball Flyers...or Buster Brown shoes. These were parents who had lived through the Great Depression and War meant Victory gardens and we canned vegetables.
My mom had the same pots and pans from her early years..now we have a Food Network, so each home has incredibly expensive matching kitchenware, a dishwasher, a Cuisinart, wok, a device for every possible kitchen task...and we barely even cook anymore! But we have giant capacity double door refrigerators, Viking Stoves, ovens, large capacity computerized washers and dryers...when's the last time you saw clotheslines?
Look at our homes? Do we REALLY need 6,400 sq foot houses?
34
Median household income in the United States is approximately $50,000 a year. To all you doctors, lawyers, and professors complaining about making, individually, a "mere" $200k because it doesn't make you "feel" rich I say this: get some freaking perspective.
26
Try understanding the perspective that apartments in markets like New York City cost $2000 per square foot, and a $200k salary really isn't that much any more.
1
the only people who are secure have at least one income on the public sector. With unemployment plus one guaranteed income and pension(and health) you are OK. If both are running ragged private sector it is not happy unless they are the very rare 1%er. Most make 75-100 which you can make as a teacher, firemen etc.
9
That $75k-100k for a teacher or firefighter sounds like it would have to be regionally adjusted.... Definitely not so here!
2
Lots of pandering comments here. Typical. Because they get them recommends from others. People making $250k or more are complaining. Fine, I know many of those problems myself, I too live in a high cost region, and I too struggle. But compared to 90% or more of the population in the world! I feel super lucky. The people here complain they don't have it as good as their parents did. Your parents also had racism, more uncared diseases, no computers, no cellphones or internet, gas guzzling cars, and constant threat of nuclear winters. Grads is always greener on the other side.
I have extended family and friends in India. Many of them still live on a few hundred dollars a year. Not a month. Growing up, I did not have tv, fridge, and many other things. Now I make pretty decent money. But if I have to live on very little again, I can. My friends and relatives there who live on pittance are still happy and complain a lot less than people making six figures here are doing.
I have extended family and friends in India. Many of them still live on a few hundred dollars a year. Not a month. Growing up, I did not have tv, fridge, and many other things. Now I make pretty decent money. But if I have to live on very little again, I can. My friends and relatives there who live on pittance are still happy and complain a lot less than people making six figures here are doing.
18
I just completed my taxes with my accountant. My wife and I made a little over $650,000 dollars last year. We paid about $140,000 in federal tax and $25,000 in state tax. We receive our income as W-2. That said, about a third of our income goes to government. We pay close to $10,000 in month for child care and require this because we are always working. In other words, taking in account expenses, mortgages, car payments, private school for the kids, we are basically living from paycheck to paycheck in silicon valley. We have a modest house in san jose that I bought 15 years ago for a million dollars and probably worth close to 2 today. Under the tax code I am considered rich, let me tell you I am certainly not! I am in my mid forties have 2 professional degrees as does my wife and we are both broke and burnt out by the rat race. There is simply no way to earn a decent income in america anymore, if you make more you are taxed into middle class, hence what really is the point of working hard to pay the 50% who dont work in our economy. You ask me, we should end all the social programs, reduce our criminal justice costs and institute a 10% flat tax - believe it or not that would solve our problems but we wont do it because our politicians get rich and we get poor under the current system
5
The man who earned $650,000 last year complains about his lot in life and asserts the solution is to end social programs? I'm shaking my head in utter disbelief.
28
You pay almost $120,000 a year in child care? Only about 20 percent of American households even make that much.
16
It's unclear how you arrive at an effective tax rate of 33% for your income. Basic arithmetic says that your effective tax rate, combining both state and federal taxes, is roughly 21%. It is perhaps true that 1/3 of your *marginal* dollar goes to the feds, but that's because you're already earning $650,000. Also, given your effective tax rate of 21%, and your annual take home pay of $650k, your monthly take home salary is in excess of $42,000. Out of that, you choose to pay $10k for child care; and yet you claim you are barely scraping by with the remaining $32k+/month. Would it interest you to know that 40% of all Americans earn less than your remainder, gross, in a YEAR?
I hate to break it to you, but you are rich by anyone's definition, be they the tax man, Obama, or even Ted Cruz. You will find no sympathy with your complaints from me nor, I suspect, anyone else reading this article.
I hate to break it to you, but you are rich by anyone's definition, be they the tax man, Obama, or even Ted Cruz. You will find no sympathy with your complaints from me nor, I suspect, anyone else reading this article.
19
None of this happened in a vacuum. But just yesterday our wonderful Republican governor informed the regents of our strapped university system that the 40% cuts in funding over the last seven years were necessary to balance the budget, that they were probably permanent and for the schools themselves to act "more like businesses".
Who votes for these people? Why the very people who are getting screwed as a result and who consider themselves middle class. Their children, if they are even able to afford college, will be burdened with debts that people in my generation couldn't even imagine. But they can carry a gun anywhere. Now, that's important!
Who votes for these people? Why the very people who are getting screwed as a result and who consider themselves middle class. Their children, if they are even able to afford college, will be burdened with debts that people in my generation couldn't even imagine. But they can carry a gun anywhere. Now, that's important!
29
Serfs may have turned over large portions of the crops to the manor lords, but now we turn over more and more of our paychecks over to insurance, mortgage, and other finance lords. History is repeating itself, unless we stop giving power to the wealthy.
23
Yes that is so true.
My dad was a career military officer from 1944-1968. Dad was an OCS product, no college and Mom graduated from Whiting (IN) High School in 1944 and went to support the "war effort". Mom was expected to volunteer her time as was expected of an officer's wife during that time. Although we might have been described as middle class, we didn't experience anything like is shown in the picture. Mom and Dad were children of the Great Depression and our lifestyle reflected this. Dad socked away every penny that he could because he knew that periodic Reductions in Force could find him out of a job in 90 days. If us kids, three of us, wanted something, his response was to tell us to go earn it. I mowed many a yard, redeemed lots of bottles, and threw a lot of papers for spending money. Allowance? Not a chance, we were expected to pitch in with our assigned chores. Dad has since passed on and left mom well off. Mom can do almost anything she wants but she worries over every penny and watches the same at 88 years old.
I am fully ensconced in retirement but I now realize that middle class is but an illusion.
I am fully ensconced in retirement but I now realize that middle class is but an illusion.
7
This didn't happen by accident and it could have been easily prevented.
It will be one of the most perplexing questions for future historians who study our era:
How did multi-national corporations through control of the Republican party and the media convince the American middle class to willingly vote itself back into the poverty, squalor and uncertainty that their grandparents' and great-granparents' generation fought, clawed, organized and in some cases, died, to escape?
It will be one of the most perplexing questions for future historians who study our era:
How did multi-national corporations through control of the Republican party and the media convince the American middle class to willingly vote itself back into the poverty, squalor and uncertainty that their grandparents' and great-granparents' generation fought, clawed, organized and in some cases, died, to escape?
45
The themes of people's experiences in the comments: insurance costs, college costs, medical costs, housing costs, credit costs all sucking people dry, hence the 1% are doing great. On top of all that, we taxpayer folk also subsidize big business by feeding their workers who are too poor to buy their own food and medical care. The "middle class" is getting it from all sides. The name for this is Reaganomics. This is Ronald Reagan's America.
41
A majority of Americans again and again vote for Republicans for President and Congress. Enough so that the Republican Party has control of either or both of the executive and the legislative branches for more than half of the last 40 years. They vote for small government and for domestic policies that starve the government of funding that created the middle class after WW II. Why do they vote against their own economic interests? Why do they keep falling for the false promises and failed policies? What has befallen the American middle class is not that the US economy declining nor education system failing. It is because of government policies enacted mostly by Republican Congress and implemented mostly by Republican Presidents starting with Ronald Reagan. These government policies have destroyed the security and upward mobility of the middle class and poor Americans. The downward spiral and shrinking of the middle class will continue until a majority of Americans wake up from their infatuation with small government and tax cuts.
18
Although, to be fair, Democrat Bill Clinton signed the Gramm-Leach-Bliley Act to put another nail in Glass-Steagall and contributed significantly to the over leverage and other problems that led to the most recent recession.
One pernicious effect of extreme wealth distribution is on real estate. The hope of many people to own property is quickly evaporating. It's really not enough to be "upper middle class". You have to be truly wealthy. Trying to bid on real estate here in Los Angeles is a joke; no matter how solid your credentials, no matter how much cash you can bring to the table, there will always be someone who can overbid by 20% in all cash. It's similar in other large cities.
The 1% is by definition a small slice of the population, but in a country of 350 million people that's still 3.5 million people. And they are concentrated in cities, like everyone else, and they crowd out all other "lesser" economic actors.
The 1% is by definition a small slice of the population, but in a country of 350 million people that's still 3.5 million people. And they are concentrated in cities, like everyone else, and they crowd out all other "lesser" economic actors.
13
Move to the other 99% of the country where your money will buy a significantly improved lifestyle. No need to buy into the big city culture - NYC or LA is not the center of the universe.
1
I fervently hope that the politicians running for President and for Congress will read and reflect on these poignant commentaries. Based on my own experiences and that of my adult children (all of whom have advanced college degrees) they ring true. There is a crisis in our country and our leaders need to stop bloviating and need to begin responding to what are actually millions of individual crises. If they can't, I fear for the stability of our nation.
9
When I saw an NPR chart about middle class incomes, broken down by cities, I understood so clearly why I am not in the middle class, even though I was born into it.
http://www.npr.org/blogs/money/2015/03/19/394057221/how-much-or-little-t...
I had always thought a position as a community-college instructor would be enough. However, with an unstable income and the exorbitant costs of living in Seattle, this can never be the case again.
http://www.npr.org/blogs/money/2015/03/19/394057221/how-much-or-little-t...
I had always thought a position as a community-college instructor would be enough. However, with an unstable income and the exorbitant costs of living in Seattle, this can never be the case again.
4
I hate to say this, and I feel especially bad saying it to my parents who paid for a good chunk of my education, but if I knew at 18 what I know now at 28, I might not have gone to college. I'm not even badly indebted; my parents saved wisely and I got a merit-based scholarship worth half my tuition to my well-regarded university. That being said, I don't feel that I actually learned anything there, except for that fact that universities compete with banks for the status of corrupt institution on the face of the earth.
19
I think this country needs to do a better job of explaining the benefits and costs of college, and the long-term implications of debt. Kids need to be to be made aware that they should consider all factors when selecting a school and major. Because the studies that come out of academia are likely naturally to be somewhat biased rather than totally objective. The easy availability of loans raises the risks and consequences of making ill-informed and less than ideal decisions.
In 2005, an intercepted Citibank memo coined the phrase which pleased their investors; plutonomy or a country or society powered by the wealthy, for the wealthy. Recall pluto = wealth. These 1 percenters may have all the wealth, but they can only utilize 1 vote during an election. The 99 percenters should be voting for the candidate that is committed to creating social norms; like universal quality childcare, universal healthcare and affordable education for all.
16
I feel that the deterioration is not accident but by design. We have outsourced and union busted every step of the way (downhill). We have cut funding for state universities and tuition has soared. I think we as Americans need to take a look in the mirror. Yes we were manipulated but we were willing to be manipulated - or at least, enough of us were. I think we have to develop a skepticism towards the pronouncements of the wealthy. We have to stop being deeply and automatically subservient. We are becoming a 'How can I help you SIR?' society, for the bottom 95%. But our betters don't care about us anymore than a customer cares about the waitress. Warren Buffet is not your uncle. The actions of the elites over the last 40 years have been selfish. There is a lot of moralizing and judgement towards people who are struggling. This needs to stop. We must start developing solidarity amongst ourselves and we must learn to separate ourselves from the need for approval and sanction from the selfish and privileged upper crust.
29
Imagine iron filings, scattered onto a countertop, with a line drawn horizontally through them. I think our social demographic matrix, made out of those iron filings, and which was once distributed along a normal curve,with a concentration of filings in the middle, has had powerful magnets applied at either end of the continuum, pulling "the middle" toward either pole. The rich, have gotten significantly richer. Filings piling up at their end. The lower middle class also have clustered at the other end, and no longer resemble the middle class at all. They resemble those outliers, the poor.
The middle class a generation ago was a less competitive place. We are not only asking young people to compete with their other middle class peers in the US for jobs and secure futures, but asking them to fend off the rising middle class of the wider world, with their equal-if-not-better educated peers from a host of nations that are also rising up the social ranks. We have been complacent. There is a lingering nationalistic sentiment in the US that we are still numero uno in all things that creates a dangerous myopia about the broader world as it evolves, and supersedes ours.We should be focusing more attention on our eroding educational advantage. We should make college more affordable. Its a tough world out there.
The middle class a generation ago was a less competitive place. We are not only asking young people to compete with their other middle class peers in the US for jobs and secure futures, but asking them to fend off the rising middle class of the wider world, with their equal-if-not-better educated peers from a host of nations that are also rising up the social ranks. We have been complacent. There is a lingering nationalistic sentiment in the US that we are still numero uno in all things that creates a dangerous myopia about the broader world as it evolves, and supersedes ours.We should be focusing more attention on our eroding educational advantage. We should make college more affordable. Its a tough world out there.
6
I'm mid-30s and work in tech career in NYC. I went to college, and am successful in my trade, but have never felt secure in my employment. In my 20s I was unemployed 3 separate times, each averaging 6-9 months between jobs, due to big corporate lay-offs. In my low/mid 20's I'd move back in with parents because I had no savings.
In the past 4 years have worked for 4 separate, smaller sized companies. They have laid off, closed positions, or outright folded. I currently make a decent living ($150k salary) which has grown over the years, but realized that I've averaged 9 months of work for each of the past 4 years. This is not intentional, it always takes 3-5 months or more to find another job even with constant interviews. I never really know if I'll find that next job, but I do.
A $150k salary sounds like a lot, but the cost of living in NYC is so high that I don't feel like it is. Housing always feels unaffordable, but I have a small place to call home. I am able to save for retirement in 401k, however since a full year's employment is rare, I've struggled to contribute fully to my goals, since most goals are over a full year employment. I haven't taken a vacation in years, and don't make large purchases.
Various stints of unemployment can be stressing. I usually collect unemployment benefits, but they cover perhaps 15% current income, and don't go far. I've considered private UI benefits to cover further, but costs balloon quickly on it.
In the past 4 years have worked for 4 separate, smaller sized companies. They have laid off, closed positions, or outright folded. I currently make a decent living ($150k salary) which has grown over the years, but realized that I've averaged 9 months of work for each of the past 4 years. This is not intentional, it always takes 3-5 months or more to find another job even with constant interviews. I never really know if I'll find that next job, but I do.
A $150k salary sounds like a lot, but the cost of living in NYC is so high that I don't feel like it is. Housing always feels unaffordable, but I have a small place to call home. I am able to save for retirement in 401k, however since a full year's employment is rare, I've struggled to contribute fully to my goals, since most goals are over a full year employment. I haven't taken a vacation in years, and don't make large purchases.
Various stints of unemployment can be stressing. I usually collect unemployment benefits, but they cover perhaps 15% current income, and don't go far. I've considered private UI benefits to cover further, but costs balloon quickly on it.
7
I no longer consider myself middle class.
Fresh out of college I earned a very decent income working at Ford Motor headquarters in Dearborn. I bought a new Ford at factory cost, they gave me gold plated health insurance, dental insurance. a good pension plan and an employee stock ownership plan. My boss use to refer to his underlings as the companies greatest assets. I had a nice but not lavish apartment, money to spend and took nice vacations. That was 1972.
Fast forward to 2015. After a medical bankruptcy 20 plus years ago, losing my business I had worked 15 hard years to build and a house that I was ten years away from paying off I live in a basement apartment, make the equivalent of $3,200 a year in 1972 dollars, haven't had a vacation in 15 or 20 years and my employer regards me as overhead.
So thank you Ronald Reagan and Congress for setting our nation on a path to destroy the middle class. I understand why you did it, you felt that we in the emerging middle class were getting too powerful. We had a record number of baby boomers that graduated from college, we had strong labor unions, we protested against the Vietnam War and we voted in sufficient numbers. Instead of wage increases and benefits for increased productivity you gave us cheap abundant credit. Just when we could point with pride to "Made in America" you declared war on labor unions, eliminated tariffs on imports and then gave us the final blow with eliminating Glass-Steagall. Vive La France.
Fresh out of college I earned a very decent income working at Ford Motor headquarters in Dearborn. I bought a new Ford at factory cost, they gave me gold plated health insurance, dental insurance. a good pension plan and an employee stock ownership plan. My boss use to refer to his underlings as the companies greatest assets. I had a nice but not lavish apartment, money to spend and took nice vacations. That was 1972.
Fast forward to 2015. After a medical bankruptcy 20 plus years ago, losing my business I had worked 15 hard years to build and a house that I was ten years away from paying off I live in a basement apartment, make the equivalent of $3,200 a year in 1972 dollars, haven't had a vacation in 15 or 20 years and my employer regards me as overhead.
So thank you Ronald Reagan and Congress for setting our nation on a path to destroy the middle class. I understand why you did it, you felt that we in the emerging middle class were getting too powerful. We had a record number of baby boomers that graduated from college, we had strong labor unions, we protested against the Vietnam War and we voted in sufficient numbers. Instead of wage increases and benefits for increased productivity you gave us cheap abundant credit. Just when we could point with pride to "Made in America" you declared war on labor unions, eliminated tariffs on imports and then gave us the final blow with eliminating Glass-Steagall. Vive La France.
23
There was never any general financial security in America...
Better propaganda, maybe.
In 1957, I had just dropped out of kindergarten.
The backyard of our rental house was near a small lake surrounded by some woods...no one in my neighborhood had a pool, though, unless you count those little inflatable plastic jobs.
There were dogs, cats, birds, fish, butterflies, snakes, bees, blackberries, strawberries, chokecherries and flowers...along with lots of other stuff kids used to find fascinating.
I had a bike so life was good for me until my father lost his job in the twin recessions of the late fifties and started smoking and drinking more heavily and occasionally fighting with my mother over rent money.
Later, life was better, on and off.
We ducked-and-covered to train for nuclear winter, avoided eating the snow in order to protect our thyroids from radioactive iodine in the atmosphere and just generally enjoyed our simple urchin lives on the wrong side of tracks, feasting on Velveeta, white bread and mayonnaise and watching Walter Cronkite, Lucy, and Amos 'n' Andy on the TeeVee.
Those were the days...not.
Better propaganda, maybe.
In 1957, I had just dropped out of kindergarten.
The backyard of our rental house was near a small lake surrounded by some woods...no one in my neighborhood had a pool, though, unless you count those little inflatable plastic jobs.
There were dogs, cats, birds, fish, butterflies, snakes, bees, blackberries, strawberries, chokecherries and flowers...along with lots of other stuff kids used to find fascinating.
I had a bike so life was good for me until my father lost his job in the twin recessions of the late fifties and started smoking and drinking more heavily and occasionally fighting with my mother over rent money.
Later, life was better, on and off.
We ducked-and-covered to train for nuclear winter, avoided eating the snow in order to protect our thyroids from radioactive iodine in the atmosphere and just generally enjoyed our simple urchin lives on the wrong side of tracks, feasting on Velveeta, white bread and mayonnaise and watching Walter Cronkite, Lucy, and Amos 'n' Andy on the TeeVee.
Those were the days...not.
8
I had the same thoughts, but you said it much better than me.
No, there probably never was any long period of financial security for the masses in the country. Maybe during the short period after WWII, when both Europe and Japan had been decimated and American companies were the leaders by default. Both before and after that halcyon American period, I think financial insecurity was and is part of life for everyone except for a small slice of the population, mostly those with independent wealth not tied to wages.
1
If there is one thing I have learned it is that economic security for most of us is illusory. More than anything we have to be lucky.
I grew up in the '50's and 60's, and have decided it was a complete economic and social anomaly. Then I was a stay-at-home mom married to a lawyer, just like my mom. I have three kids, she had four. My dad educated all of us (no debt for anyone) and accumulated a lot in assets. We, despite a good income, couldn't afford to send our kids to the colleges we went to, but they grabbed scholarships, went to good schools and came out with very modest debt, much of which we paid. Our daughter gave up on American economic and social culture altogether and lives frugally paycheck to paycheck in Europe. One son is a professor at a prestigious university, and both he and his wife work long hours, and have one child. The youngest is in the military, having returned from a Fulbright year with no job prospects beyond barrista. All I wish for them is that they are lucky and healthy.
My husband and I feel fortunate. So far we have managed to steer our boat without being swamped or washed overboard. But we have never accumulated what my parents did either in possessions or liquid assets. Our kids may ultimately do better than we did--fewer children, two workers. But there is no guarantee, or possibly even a likelihood. I think the extraordinary cost of higher education and income gap contribute to this. It's a whole new world from the one I grew up in.
I grew up in the '50's and 60's, and have decided it was a complete economic and social anomaly. Then I was a stay-at-home mom married to a lawyer, just like my mom. I have three kids, she had four. My dad educated all of us (no debt for anyone) and accumulated a lot in assets. We, despite a good income, couldn't afford to send our kids to the colleges we went to, but they grabbed scholarships, went to good schools and came out with very modest debt, much of which we paid. Our daughter gave up on American economic and social culture altogether and lives frugally paycheck to paycheck in Europe. One son is a professor at a prestigious university, and both he and his wife work long hours, and have one child. The youngest is in the military, having returned from a Fulbright year with no job prospects beyond barrista. All I wish for them is that they are lucky and healthy.
My husband and I feel fortunate. So far we have managed to steer our boat without being swamped or washed overboard. But we have never accumulated what my parents did either in possessions or liquid assets. Our kids may ultimately do better than we did--fewer children, two workers. But there is no guarantee, or possibly even a likelihood. I think the extraordinary cost of higher education and income gap contribute to this. It's a whole new world from the one I grew up in.
36
Why don't the middle class people band together, and vote for politicians that will work for a "people's platform".
(1) Force for-profit companies to pay a living wage. If you can't pay your employee a living wage you should be out of business. Or a non-profit. It's time the middle class stop subsidizing the Wal-Mart and MacDonald heirs at the expense of the middle class.
(2) Tax the rich who live off investment income at the same rate as workers who live off their labor. This will have an added benefit of increasing productivity.
(3) When the private sector dumps employees unto the streets to keep wages down, the government should be an Employer of Last Resort. People who like to work with their hands can make toasters (for example) in a government factory. People who like to design web sites can make a site that advertises and sells those toasters. Patriotic citizens can shop on the Government web site instead of amazon. We could even hire more postal workers to handle the increased load.
(4) Set up a government news channel and hire creative types to produce reality-based content to counter the lies told by the private 'news' industry. Hire young blondes to read the news. Invite conservative 'guests' to be shouted down when expressing their lies.
These problems aren't hard to solve. Republicans have convinced 47% of the population to vote against their best interest. Let's re-capture some of these voters and strengthen the middle class at the same time.
(1) Force for-profit companies to pay a living wage. If you can't pay your employee a living wage you should be out of business. Or a non-profit. It's time the middle class stop subsidizing the Wal-Mart and MacDonald heirs at the expense of the middle class.
(2) Tax the rich who live off investment income at the same rate as workers who live off their labor. This will have an added benefit of increasing productivity.
(3) When the private sector dumps employees unto the streets to keep wages down, the government should be an Employer of Last Resort. People who like to work with their hands can make toasters (for example) in a government factory. People who like to design web sites can make a site that advertises and sells those toasters. Patriotic citizens can shop on the Government web site instead of amazon. We could even hire more postal workers to handle the increased load.
(4) Set up a government news channel and hire creative types to produce reality-based content to counter the lies told by the private 'news' industry. Hire young blondes to read the news. Invite conservative 'guests' to be shouted down when expressing their lies.
These problems aren't hard to solve. Republicans have convinced 47% of the population to vote against their best interest. Let's re-capture some of these voters and strengthen the middle class at the same time.
22
> A perspective that was once characterized by comfort and optimism has increasingly been overlaid with stress and anxiety.
"Overlaid"? How about "largely defined by"?
As Matt Taibbi put it:
"There's no better symbol of the gloom and psychological repression of modern America than the banking system, a huge heartless machine that attaches itself to you at an early age, and from which there is no escape. You fail to receive a few past-due notices about a $19 payment you missed on that TV you bought at Circuit City, and next thing you know a collector has filed a judgment against you for $3,000 in fees and interest. Or maybe you wake up one morning and your car is gone, legally repossessed by Vulture Inc., the debt-buying firm that bought your loan on the Internet from Chase for two cents on the dollar. This is why people hate Wall Street. They hate it because the banks have made life for ordinary people a vicious tightrope act; you slip anywhere along the way, it's 10,000 feet down into a vat of razor blades that you can never climb out of."
Link = http://www.rollingstone.com/politics/news/how-i-stopped-worrying-and-lea...
"Overlaid"? How about "largely defined by"?
As Matt Taibbi put it:
"There's no better symbol of the gloom and psychological repression of modern America than the banking system, a huge heartless machine that attaches itself to you at an early age, and from which there is no escape. You fail to receive a few past-due notices about a $19 payment you missed on that TV you bought at Circuit City, and next thing you know a collector has filed a judgment against you for $3,000 in fees and interest. Or maybe you wake up one morning and your car is gone, legally repossessed by Vulture Inc., the debt-buying firm that bought your loan on the Internet from Chase for two cents on the dollar. This is why people hate Wall Street. They hate it because the banks have made life for ordinary people a vicious tightrope act; you slip anywhere along the way, it's 10,000 feet down into a vat of razor blades that you can never climb out of."
Link = http://www.rollingstone.com/politics/news/how-i-stopped-worrying-and-lea...
16
Most of you are becoming indentured servants, forced to take insecure, stressful jobs you don't like in order to pay off college loans, mortgages, credit cards, medical bills. This condition is worse than poverty for you are lacking freedom. Tragically sad.
15
This question has very much to do with geography. If you are making $300,000 in Grand Rapids, Michigan you are living in a beautiful home in the very best neighborhood and can send four kids to private school. If you are making $300,000 in Atherton, California you can barely meet the mortgage payment on your $2,200,000 3 bedroom 1,451 square foot stucco ranch house.
15
$300,000! I can't even imagine making that much money in one year.
The picture accompanying this article looks like it's right out of Lifestyles of the Rich and Famous. How far we've come.
4
Things you had then.
A personal life vs a work life.
Time off-not in contact with work
stable technology-no constant changes
Jobs were more stable-unions common-and benefits expected. 1099 wasn't a cost cutting idea.
Now, every transaction has been gone over by an MBA with "how can I make $5 here". Jobs and unions are gone. The local merchant is the big box. The treadmill goes faster but the carrot does not move.
A personal life vs a work life.
Time off-not in contact with work
stable technology-no constant changes
Jobs were more stable-unions common-and benefits expected. 1099 wasn't a cost cutting idea.
Now, every transaction has been gone over by an MBA with "how can I make $5 here". Jobs and unions are gone. The local merchant is the big box. The treadmill goes faster but the carrot does not move.
22
I often think of the 70's compared to now. Granted, I was a kid back then so my recollections should be taken with a grain of salt but I can't say that I perceived anything like the societal angst that I sense now. Back then it seemed like if you applied yourself then you could find a decent job and that if you worked hard then your odds of being successful were quite good. Conversely, if for some reason you got laid off it seemed like you'd find another opportunity sooner rather than later. (I say that also clearly recalling gas lines and stagflation. Those were bad things but they didn't instill a sense of impending doom. They were just a inconveniences we'd need to work through.)
Stuff is fancier now but I can't say that, overall, life feels any better. It's definitely different and some things are certainly better (e.g., medical care (if you can afford it), easy access to really good beer, bread, and coffee) but I can't say that overall it feels like things have improved over the past 40 years.
Stuff is fancier now but I can't say that, overall, life feels any better. It's definitely different and some things are certainly better (e.g., medical care (if you can afford it), easy access to really good beer, bread, and coffee) but I can't say that overall it feels like things have improved over the past 40 years.
4
Reading this article and these comments one must conclude that the "death knell" of capitalist production has rung.
13
What strikes me is the American boast of rugged individualism. Unable to work together fpr the common good, we perish alone. In Europe, with a stronger sense of community and mutual responsibility, people would be out on the streets. But Americans are passive.
46
Completely agree with this analysis and commentary. Part of the problem is that "high earners" tend to live in places with astronomically high cost for housing/food etc. Think NYC, Bay Area, Boston, LA... I make 150k/year at 30 and own my own business. My wife and I live paycheck to paycheck. I could probably make 250k at a big company but, if I did that, I'd need to endure 5-10 years of stress to pay off huge MBA debts and save enough just to buy a condo. At least with my own company, I could (possibly) sell it and (maybe) make enough in one shot to buy a condo and pay for school. Yippee! So today you need to start a company, raise millions of dollars (which has diluted my ownership), grow the company to a market leader (done) and sell it just to be as economically stable as my middle class parents. Not complaining; most people seem to have worse prospects but the current situation sure seems unsustainable.
4
there has GOT to be something wrong with this data. Perhaps tax records that show big year, like selling a home, as a big income year? or bd years where cost of care at the end of life, for example, leads to indications of relative poverty? I have a really hard time believing that the "average" family has such income variabiliaty.
4
Job losses, medical emergencies, death and disability... They come to many of us. And some of it may be accounted for by early years' earnings being low or giving up work hours to go back to school. The 3 years after I graduated were all under $17k gross- definitely not the poverty line for a single person but certainly tight.
Those of us who once had secure well-paying jobs but are now stuck in what I call the 1099 Ghetto could explain it to you any time.
What may well rock the middle class illusion for those at the lower end is the creation of a "livable" minimum wage. The livable minimum wage could well come to define a true underclass in this country that will come to see itself as distinct and separate from the rest of society.
3
The issue I most often see among my peers with regard to financial stress is that too many get themselves in over their heads with unnecessary debt by purchasing a vehicle they cannot really afford, excessive amounts of new clothes, or a twice-daily run to Starbucks at $5 a pop.
Financial stress is so often self-induced. You do not need, nor can you afford, that $30,000 car even though the sales person and the finance arm of the dealership said you could. Pile on top of this credit card debt from purchasing lots of little items that add up and up.
I have to suspect that the "American Dream" is largely an image promoted by retailers and financial institutions in order to push Americans into debt by buying stuff they don't really need.
I trust that used, reliable cars (instead of new), good clothes at the thrift store (at 1/10th the cost), and a coffee machine (instead of Starbucks) will save more than a few people from the stress of tight finances.
Less is so much more...
Financial stress is so often self-induced. You do not need, nor can you afford, that $30,000 car even though the sales person and the finance arm of the dealership said you could. Pile on top of this credit card debt from purchasing lots of little items that add up and up.
I have to suspect that the "American Dream" is largely an image promoted by retailers and financial institutions in order to push Americans into debt by buying stuff they don't really need.
I trust that used, reliable cars (instead of new), good clothes at the thrift store (at 1/10th the cost), and a coffee machine (instead of Starbucks) will save more than a few people from the stress of tight finances.
Less is so much more...
19
Good points, especially about the constant push to consume that is promoted by businesses selling goods and financial institutions offering credit.
Let us recall the glorious '50s:
- Permanent underclass of minorities providing labor at unfair wages to "serve" middle-income white Americans.
- Privilege and protection for good-paying union jobs reserved for whites only
- No special ed of any kind for people with special needs
- a 2-tier education system serving whites, and one for everyone else
- No handicap ramps, audible traffic lights,
- Tragic stories of seniors eating dog food, malnourished children.
I'm glad I don't live in THAT glorious golden age of the "white" middle class.
Instead, we get to live in a society where the poor are obese; where people are segregated and discriminated based on education, income, sexual orientation, rather than race; where the middle-income group has shrunk while both the upper income and lower income group has grown; where 75% of our kids graduate from high school and nearly 50% go to college while piling on debt.
Our society today has many problems and numerous inequities. We have to work to solve these. But I do not pine for the "good old days" of the 50s and the golden age of the middle class that was reserved exclusively for whites.
- Permanent underclass of minorities providing labor at unfair wages to "serve" middle-income white Americans.
- Privilege and protection for good-paying union jobs reserved for whites only
- No special ed of any kind for people with special needs
- a 2-tier education system serving whites, and one for everyone else
- No handicap ramps, audible traffic lights,
- Tragic stories of seniors eating dog food, malnourished children.
I'm glad I don't live in THAT glorious golden age of the "white" middle class.
Instead, we get to live in a society where the poor are obese; where people are segregated and discriminated based on education, income, sexual orientation, rather than race; where the middle-income group has shrunk while both the upper income and lower income group has grown; where 75% of our kids graduate from high school and nearly 50% go to college while piling on debt.
Our society today has many problems and numerous inequities. We have to work to solve these. But I do not pine for the "good old days" of the 50s and the golden age of the middle class that was reserved exclusively for whites.
10
Very simple way to understand what has changed in American society since my dad worked at the same company his entire career in middle management and my mom (mostly) stayed at home. How many of us would recommend that our children go into the same profession that we're in? I'm a college professor and I will strongly discourage my children from working in academia, because what's happening there isn't pretty. I'm guessing medical professionals feel pretty much the same way, and so on. The exceptions? Finance and banking, I suspect.
13
My husband and I - both professionals - are entering our 60s feeling relatively secure with a joint income of $160-200,000 a year, but still face another seven-ten years before we can retire, due to a heavy tax burden here in Canada, mortgage and consumer debt. That is our fault. What I worry about more is our children. A son and a daughter, 27 and 29, unmarried, renters, working as a Fedex driver and a nanny respectively, living pay cheque to pay cheque. They are university educated but I fear that they will be part of the working poor. How did it come to this in one generation? My parents who worked so hard to be part of the middle class would be so upset with me, I feel.
90
i have the same fears for my sons. It happened that people became fearful of each other and lost hope in the future. Bankers , politician, lawyers, allowed the sale of our society's productive assets and put the profits in their pockets instead of investing in wealth creation for the next generation. So our chldren are poor than us, and will be and they know it.
1
Tish, as an expat Canadian who has worked with many US citizens, let me assure you that in terms of getting value for your dollar, you are far ahead of the US. I was talking with friends from Georgia and this was in 2000. They asked about Canadian medical - could we go to any doctor we wanted? Could we demand a second opinion? Did we have to co-pay for medical treatment? Was the first thing asked for at the hospital a credit card? These were people in their early 50's. I was shocked to find that in Georgia, the medical plan that was covered by tax dollars in Canada would have set them back $1,000 US A MONTH! So 12,000 dollars just for what we considered standard medical care. I found out their taxes were reasonable - but their property tax was over 7000 dollars a YEAR. Overall, for many places in Canada, I am not too sure whether people realize how good they have it, and how bad things can really be. I wouldn't want to be my friends in the states, that's for sure...
I left a career to pursue a Masters degree, thinking I was doing the right thing. I've been working for 4 years since graduation, and my company is now trying to outsource the division I joined to Asia. The company's priority is to maximize the profit paid to the company's owner and his half dozen or so executives (one of whom is his 24-year-old son). The profit must come at any cost, including starving resources from the new digital division which I am a part of and one would think would be an area worthy of investment.
What I see around me are lots of workers being paid low salaries, and valued for their youth, because they "understand" social media. But they are entrenched in one "task", and in eight or so years will no longer be young nor valued nor particularly employable elsewhere because the economy is so highly specialized.
The global economy, which we thrust upon the world to expand markets, has created a hyper-competitive environment where companies seek only very specific skill sets. Even a slightly different area of expertise will automatically exclude you from a job opening.
I've learned that nepotism is rampant, and only highly privileged people with the right connections (family or über cool friends) are able to make moves. Not what I was sold when applying to grad school.
What I see around me are lots of workers being paid low salaries, and valued for their youth, because they "understand" social media. But they are entrenched in one "task", and in eight or so years will no longer be young nor valued nor particularly employable elsewhere because the economy is so highly specialized.
The global economy, which we thrust upon the world to expand markets, has created a hyper-competitive environment where companies seek only very specific skill sets. Even a slightly different area of expertise will automatically exclude you from a job opening.
I've learned that nepotism is rampant, and only highly privileged people with the right connections (family or über cool friends) are able to make moves. Not what I was sold when applying to grad school.
34
Perhaps this 3 generational story will resonate:
I am 50 with a STEM graduate degree, my father is 80 with a STEM graduate degree and my son is 23 and has a BS degree
My father worked for one Fortune 500 company his entire career.
This company had 3 picnics a year for the 500+ local employees and a lavish X-mas party where all the employee's kids met Santa and received a present.
He had 5 weeks of vacation and we took cross country camping trips each summer.
In the late 1980's some of his friends started to get laid off (which had never happened) and my father started to worry this would happen to him. In 1991 the company decided to close down his office. He was able to retire a year later with a full pension and lifetime medical benefits from this company.
I have worked for 6 different companies and in some years have made close to $200K and have also collected unemployment 3 separate times.
I have a 401K which I have seen go up and down (unlike a pension) and never had more than 2.5 weeks of vacation.
My college in the 1980s cost 6,000 a year - it is now 22,000 (Similar story for where I received my Masters)
My 23 year old son's college cost $40,000 a year. He is now a teacher making $18,000 a year in NY. I presume he will get a grad degree at some point and make decent money?
I am 50 with a STEM graduate degree, my father is 80 with a STEM graduate degree and my son is 23 and has a BS degree
My father worked for one Fortune 500 company his entire career.
This company had 3 picnics a year for the 500+ local employees and a lavish X-mas party where all the employee's kids met Santa and received a present.
He had 5 weeks of vacation and we took cross country camping trips each summer.
In the late 1980's some of his friends started to get laid off (which had never happened) and my father started to worry this would happen to him. In 1991 the company decided to close down his office. He was able to retire a year later with a full pension and lifetime medical benefits from this company.
I have worked for 6 different companies and in some years have made close to $200K and have also collected unemployment 3 separate times.
I have a 401K which I have seen go up and down (unlike a pension) and never had more than 2.5 weeks of vacation.
My college in the 1980s cost 6,000 a year - it is now 22,000 (Similar story for where I received my Masters)
My 23 year old son's college cost $40,000 a year. He is now a teacher making $18,000 a year in NY. I presume he will get a grad degree at some point and make decent money?
40
Jake, while some would say your tale is "merely anecdotal," it is highly illustrative of the shift that has happened in the last 30+ years. Thanks.
1
Middle class. No kids. No debt. No car. I live really well being frugal, while enjoying lots of the trappings of the good life.
5
"Middle class" is a defunct concept. Now there are the ultra rich pretending to create new jobs, ready to blame the workers if something goes wrong. Education is for rich people not for the middle class and if ever you are able to graduate you are close to the bankruptcy for many years, living under stress and disappointments. Yes, the American Dream is still there but it is more similar to a dream than to a possibility.
6
Did anyone realize how that photo of middle class living was Don Draper + for income. That was an very upper middle class income and it was likely held down by one white male earner.
1
Excellent point. And just my argument -- people THINK Don Draper represents the "average 1960s man" but in fact, he would have been insanely rich. He was earning $25K when the show begins in 1960 -- 5-6 times the average wage in that era -- and by the mid point of the show, he is a partner in a huge Manhattan ad agency and literally a millionaire. And that at a time when a million dollars would equal about 100 million today. He is hugely, vastly wealthy.
Not average, and absolutely NOT middle class.
BTW: that photo shows a luxury new home with a SWIMMING POOL. I'll bet in 1960, less than 1% of all Americans owned their own private swimming pool. If you did, you were very very rich.
Not average, and absolutely NOT middle class.
BTW: that photo shows a luxury new home with a SWIMMING POOL. I'll bet in 1960, less than 1% of all Americans owned their own private swimming pool. If you did, you were very very rich.
1
"Any appeals have to involve both cents and sensibility." Thanks for the pun on Jane Austen's novel! Brought a smile to my day. An appropriate one, considering that self-delusion and class anxiety are nothing new and a persistent theme in Austen's works.
4
I wish the politicians running this country would read at least of all of the NYTimes Picks to see how the "supposed" middle class is doing. It is shameful how these same politicians go on and on about the middle class as they continue to pander to the 1%. Shame on you. What happened to the country that cared about its citizens and their welfare? Sad to say, it is gone.
The only good news that I read today was that GE was finally getting out of the finance business, bringing all the money that it had stashed overseas back to this country and will now focus on building up its core business of making things. Every business in this country should follow GE's example, bring jobs home and create a new and dynamic economy in which the majority of Americans prosper, not a few. What made this country great once was its robust economy. Without a robust economy, this country is doomed to failure.
The only good news that I read today was that GE was finally getting out of the finance business, bringing all the money that it had stashed overseas back to this country and will now focus on building up its core business of making things. Every business in this country should follow GE's example, bring jobs home and create a new and dynamic economy in which the majority of Americans prosper, not a few. What made this country great once was its robust economy. Without a robust economy, this country is doomed to failure.
15
The statement that 80% or whatever number experienced near poverty level incomes at some point in their lives is meaningless. If you lose employment or when you are just starting out your income is near zero. All it means is that somehow 20% have never lost their job! or some how kept their income level about that level all their life.
The reason that people experience such insecurity is because job losses are very painful and leave lasting memories. And it is certainly true that compared to 40 years ago, now the chance you can lose your job at least a few times in life is quite high. But it hardly means on average your life is worse than your parents. People tend to have a rosy memory of past, and look at the current through a microscope. Grass is always greener on that side
The reason that people experience such insecurity is because job losses are very painful and leave lasting memories. And it is certainly true that compared to 40 years ago, now the chance you can lose your job at least a few times in life is quite high. But it hardly means on average your life is worse than your parents. People tend to have a rosy memory of past, and look at the current through a microscope. Grass is always greener on that side
1
location, location, location. Housing is ridiculously expensive-- but people expect more in a house today (AC, granite counters, family room, deck etc.) than they did in the 50s.
The housing situation in desirable parts of the country in which to live (not the middle of the country) is "ridiculous." IMO we need well-designed high-rise communities (why in the world, they pout up all of those two-family houses using federal dollars in the Bronx beats me.) Old people prob. do best not in a house but 5K a month in the NYC area for one-room in assisted living (meals) -- does not make sense either. There is a housing crisis which is rarely discussed.
The housing situation in desirable parts of the country in which to live (not the middle of the country) is "ridiculous." IMO we need well-designed high-rise communities (why in the world, they pout up all of those two-family houses using federal dollars in the Bronx beats me.) Old people prob. do best not in a house but 5K a month in the NYC area for one-room in assisted living (meals) -- does not make sense either. There is a housing crisis which is rarely discussed.
5
Reading many of these comments offers a fascinating perspective on American life today. I empathize with the discomfort expressed by so many here, yet we should not forget that we are comparing ourselves to what may have been a golden era of American history, the 30 years from 1945 to 1975 (roughly) when our economy was all powerful and could offer economic security and a steady improvement in living standards for a majority of society. Such periods are rare, and we clearly are not in one now. Lately I've been receiving and reading the annual spring flood of annual reports and proxy statements from major corporations in which I own stock. I'm lucky to own a few hundred shares in a dozen or so firms (most held in my IRA), but I am dumbfounded by the compensation packages that these companies hand out to their executives. The sense of entitlement that these executives must enjoy is simply stunning and is, I suspect, symptomatic of a mindset that not only sees corporations as people but also values people simply by their ability to pay for corporate products/services.
22
Even the poor people in the US have much better life compared to 80% of the people in the world. And the poor people of today have much much better life compared to most people in history. But I bet the resentment towards the people who have a bit more is highest ever in the history of mankind.
7
Resentment highest in history? Really? The French Revolution is just one of many counter-examples. The extremely wealthy may feel under-appreciated, but I doubt that most of them really live in fear for their lives.
A little perspective can go a long way.
A little perspective can go a long way.
4
Then I would expect of the remaining 20 % you refer to, the poor in America would be at the bottom of that list since they would probably be the only ones without any healthcare coverage.
1
People feel that they are not sharing equally in the profits - -which their talent and work helped to make. This is actually the case. The gap is wider than ever.
1
Thank the Republicans for this. 'Family values' via the Koch Brothers and corporations.
They just about own us now - they certainly own our legislators at the state and federal levels. They write the laws and we just act like serfs.
What they don't fully own now they will in a couple of more years thanks to the Supreme Court (also owned by the Koch Brothers).
We are no longer a democracy; we're an oligarchy.
They just about own us now - they certainly own our legislators at the state and federal levels. They write the laws and we just act like serfs.
What they don't fully own now they will in a couple of more years thanks to the Supreme Court (also owned by the Koch Brothers).
We are no longer a democracy; we're an oligarchy.
28
Interesting comments. I make decidedly middle class money, less than $70K per year, and feel no economic anxiety. It's all about expectations and personality type. I'm from Gen X and we were repeatedly told we'd be the first generation not to do as well as our parents. I expected a life of poverty and am surprised that I've never had to worry (knock on wood) about having a roof over my head or enough to eat. Anything else in life is gravy.
23
I tend to feel the same way. My family was heavily affected by the boom and bust of the 80s and I value the security careful saving and spending provides over keeping up with the Joneses.
My husband and I are in our 40s, and by any standard we should be doing "better" than our parents. And in the sense that my husband makes a good paycheck, yeah, we are. I am able to work part time or even stay home with our kid, and we're able to save money for retirement, college tuition and a new house.
But we are both aware that what we have can vanish with a single catastrophic illness or a car accident. My husband, a business owner, is aware that his employees (and he as well) are getting less and less out of healthcare that (still!) costs more and more all the time. We see our rural area get walloped by unemployment as more of our manufacturing and resource jobs are slashed -- why bother when Asia has it all so much cheaper? -- and we don't know what this will mean for the neighborhood we have here, the schools we will send our kid to, or the people we know.
The global rich can build a protective moat of money around them in any country they care to live in -- as the NYT has reported, they are squeezing out locals in London, NY and any other glamorous area. There is no protection for the people in my area; this is where people seem to go when they've been squeezed out of everywhere else, and there's rapidly becoming nothing here for them.
It's hard to feel rich or safe when everyone and everything around you is increasingly worse off, even when, comparatively speaking, you are.
But we are both aware that what we have can vanish with a single catastrophic illness or a car accident. My husband, a business owner, is aware that his employees (and he as well) are getting less and less out of healthcare that (still!) costs more and more all the time. We see our rural area get walloped by unemployment as more of our manufacturing and resource jobs are slashed -- why bother when Asia has it all so much cheaper? -- and we don't know what this will mean for the neighborhood we have here, the schools we will send our kid to, or the people we know.
The global rich can build a protective moat of money around them in any country they care to live in -- as the NYT has reported, they are squeezing out locals in London, NY and any other glamorous area. There is no protection for the people in my area; this is where people seem to go when they've been squeezed out of everywhere else, and there's rapidly becoming nothing here for them.
It's hard to feel rich or safe when everyone and everything around you is increasingly worse off, even when, comparatively speaking, you are.
8
Watch the legal immigrants who come to this country. The families start small businesses, everybody in the family works hard, they pool their money together and help get their younger generation a good education. The legal immigrants recognize the political and economic systems in this country make for a land of opportunity if you work hard. Seems many of our natural born citizens have lost that vision. One thing our government has done is weaken the family. We once looked to family members for help now we look to the government.
13
I have a master's degree and my income and opportunities steadily improved until 2007. I worked for them and continued to go to school to keep my skills current. Now I have three jobs, earn less than I did in 1998 and don't see where I will ever have a shot at getting to pre-recession wages.
If I did something wrong, can someone tell me what that was?
If I did something wrong, can someone tell me what that was?
2
Looking to family only helps if the rest of your family isn't facing the same struggles, and in the years with little safety net, people died from their poverty. Family helps when they can, gov't helps when they can, charity helps when they can.
1
In 1985, the Reagan administrative revoked the fairness doctrine, which required broadcasters to provide balanced political programming. After that the floodgates opened on corporate right wing propaganda disseminated via supposedly "fair and balanced" news programs.
This is a huge reason why 27% of the American voting public - aka the "low information" voters - reliably votes for the very worst GOP demagogues and policies, against their own self interest.
I do believe the answer is simple, to vote, and work to get others to vote. Progressive politicians will bring us good laws and fairer policies. People like Warren, Grayson, Sanders show it's possible. That's why the GOP, at the behest of its corporate owners, fights voting rights wherever it can. If people would only vote the good people in, so much could improve so quickly.
This is a huge reason why 27% of the American voting public - aka the "low information" voters - reliably votes for the very worst GOP demagogues and policies, against their own self interest.
I do believe the answer is simple, to vote, and work to get others to vote. Progressive politicians will bring us good laws and fairer policies. People like Warren, Grayson, Sanders show it's possible. That's why the GOP, at the behest of its corporate owners, fights voting rights wherever it can. If people would only vote the good people in, so much could improve so quickly.
14
Perhaps if couples making over $150,000 a year would adjust their needs and curtail their sense of entitlement, they could appreciate how good they have it.
When I hear tenured professors complaining that they are underpaid for teaching two courses a week with a month or more or vacation plus all the other perks of a professor, I am amazed at their hubris. Reading comments here, one would get the impression that the US has suddenly become a third world country and all the positive economic gains of the Obama years never took place.
When I hear tenured professors complaining that they are underpaid for teaching two courses a week with a month or more or vacation plus all the other perks of a professor, I am amazed at their hubris. Reading comments here, one would get the impression that the US has suddenly become a third world country and all the positive economic gains of the Obama years never took place.
7
Professors with tenure or in positions leading to tenure are a dying breed. The majority of university faculty these days are part-time (even if they carry a full-time load, they're classed as part-time), make less than 30k a year, and have no employer sponsored retirement account or health insurance.
Being a professor, Ph.D. and publications and all, is for most no longer a middle class job.
Being a professor, Ph.D. and publications and all, is for most no longer a middle class job.
2
I'm a fan of the president, but the gains have mostly been in the stock market, which doesn't provide a lot of help to most people. The jobs gains are better than not having them but they still pay less than the ones lost.
I stand by my definition of middle class. It is someone who is reliant on a paycheck. Loss of income can start the slide to poverty, no health care, and dim retirement prospects.
4
That the author would equate drawing unemployment insurance with being on welfare makes it evident to me that he or she is living in a dream world - probably like many in this fake economy who generate little of value but are paid astronomically. I have had the bad luck of being laid off in my 50's, accepted a job making $15/ hour with high stress, despite a Master's degree in engineering and 15 years technical sales experience. I feel like one of the people thrown under the bus by capitalism and the Winner Take All culture in America these days.
29
Why isn't it a fair comparison? It's all part of the safety net and plenty of people on poverty programs have paid in just as employers have paid in.
Perhaps the classic Republican solution for financial woes of families with incomes between $30,000 to $70,000 per year can be tried again: tax cuts for those making more than $250,000, a tax holiday on corporate repatriation of foreign earnings, and exempting interest, dividend and rental income from taxation (almost all of which is received the top 5%). After all, a rising tide lifts all yachts.
6
Don, This rising tide lifts the yachts but swamps the rowboats.
3
I think one simple ratio captures the problem. An old "rule of thumb" said the house you can afford is 3x your income.
Living within this rule got my parents, both schoolteachers, a 2-story house with a pool, where they raised us kids. Today Zillow says the median LA home is $534K and in San Jose it is $753K. The median CA family income is $70K. Three times that income won't buy squat.
The gains in economic output have gone primarily to the wealthy who not only have seen wealth inequality reach levels not seen since the 1920's but are paying less in taxes. It isn't envy that causes problems, though, its that the standard of living available to many even 30 years ago is now gone.
Living within this rule got my parents, both schoolteachers, a 2-story house with a pool, where they raised us kids. Today Zillow says the median LA home is $534K and in San Jose it is $753K. The median CA family income is $70K. Three times that income won't buy squat.
The gains in economic output have gone primarily to the wealthy who not only have seen wealth inequality reach levels not seen since the 1920's but are paying less in taxes. It isn't envy that causes problems, though, its that the standard of living available to many even 30 years ago is now gone.
42
The great riddle in this article for me is the line that
"even though consumption was once a useful shorthand guide to a middle-class lifestyle, it is no longer as reliable in a world where [...] retirement savings, even among top earners, are often treated as a luxury."
How can this be common knowledge and yet we still have elected officials of both parties with their eyes on Social Security and Medicare as a way to finance continued tax cuts (payroll tax cap, carried interest, capital gains, relatively low estate rates) for the wealthiest? Our politicians are clearly too far into the pockets of the super rich and until we have strict campaign finance reform or publicly financed elections, however those would work, we will continue inexorably this trend of enriching the wealthiest at the expense of everyone else.
"even though consumption was once a useful shorthand guide to a middle-class lifestyle, it is no longer as reliable in a world where [...] retirement savings, even among top earners, are often treated as a luxury."
How can this be common knowledge and yet we still have elected officials of both parties with their eyes on Social Security and Medicare as a way to finance continued tax cuts (payroll tax cap, carried interest, capital gains, relatively low estate rates) for the wealthiest? Our politicians are clearly too far into the pockets of the super rich and until we have strict campaign finance reform or publicly financed elections, however those would work, we will continue inexorably this trend of enriching the wealthiest at the expense of everyone else.
4
Social Security is a Ponzi scheme. Those collecting now collect more than they put in. Those putting in now will not collect all they put in. That's why it needs to be scraped.
1
One of the great mysteries to me is why so many people bash unions - the institutions that gave our parents their 'middle class lifestyle', as well as being the one force that argues for labor over stockholders and management, a.k.a. the 0.1%
Unions were formed so that workers wouldn't be wage slaves. And yes, some of them became corrupt and needed reform.
But America threw out the baby with the bath water.
Unions were formed so that workers wouldn't be wage slaves. And yes, some of them became corrupt and needed reform.
But America threw out the baby with the bath water.
75
Thank you. America has a habit of going against its own self interest. Health care is an another example as is higher education (the clamor for lower taxes).
2
Honestly I could not say it better. I am a public school teacher. I am very grateful that I have a strong union. I can count on due process, fair treatment, decent benefits and a pension. I wish ALL of you reading this had the same. You deserve it. People who work hard should get fair treatment.
4
I believe it is wrong to assume that teachers and policeman, train engineers and others municipal employees don't make decent money, their pay and retirement is heavily burdening thew taxpayer.
1
The problem lies with mortgage payments and rental payments. These payments are way too expensive and do not match middle income wages. Cut these payments in half, at least, and people will feel secure, be able to save a bit. Someone somewhere is collecting more than they need in interest.
3
The government, not the private sector, created the robust middle class of post-WW2 that our parents enjoyed. GI college loans, truly progressive taxes, etc. I don't understand why those who are now lower middle class by mid-20th century yardsticks still believe that unbridled capitalism will share the wealth.
It's completely obvious that nothing trickles down. 40 years of post-Reagan fantasy economics and stagnant wages should be enough evidence. But Americans persist in a "freedom" fantasy of economic policy that more closely resembles wining the lottery than equitably rewarding all citizens.
Why are we happy that everything trickles up? It's policy, people, not manifest destiny.
It's completely obvious that nothing trickles down. 40 years of post-Reagan fantasy economics and stagnant wages should be enough evidence. But Americans persist in a "freedom" fantasy of economic policy that more closely resembles wining the lottery than equitably rewarding all citizens.
Why are we happy that everything trickles up? It's policy, people, not manifest destiny.
38
What you miss is that government policy today does not support the middle class like it once did. In fact, it taxes the middle class for the benefit of others. So the middle class has abandoned the champions of big government like you. When it comes to the best interests of the middle class, we are well aware of what helps us most. And it is amazing how oblivious and how arrogant the wealthy are. Your money blinds you to the truth.
1
What's missing from this article is a discussion of the astronomical cost of housing in and around big cities. Most people assume that a middle-class person should be able to own a house in a neighborhood with decent schools, but that's out of reach for most middle-class families in LA. We are well above the median income here, but we rent, as do most of the truly middle-class people around us.
11
By all means, the U.S. ought put out the welcome mat for another 50 million immigrants, as has been the case since 1970, more if you add in the illegals.
22
Right, because even though our family is poor I'm going to run out and get a job cleaning my friends' houses. It's SO much more complicated than you anti-immigration folks perceive it to be. I make pretty good money working in my profession albeit part-time. I would love to work full time but there are no jobs for people my age.
In 1950 the ratio of men-women in the workforce was 70-30. That means there's a good chance that woman in the 1957 picture did not have to work, while that family still enjoyed a middle-class lifestyle.
In 2000, that men-women ratio was 53-47. There's a good chance then, if that photo was taken in 2000, both parents would be working just to have the same middle-class lifestyle.
Don't get me wrong, I applaud women's advancement. I just question why, with two-earner families, we generally feel worse off financially than the typical one-earner family of the 1950s.
In 2000, that men-women ratio was 53-47. There's a good chance then, if that photo was taken in 2000, both parents would be working just to have the same middle-class lifestyle.
Don't get me wrong, I applaud women's advancement. I just question why, with two-earner families, we generally feel worse off financially than the typical one-earner family of the 1950s.
7
Major technological advances (including computers, the internet, and automation), outsourcing, and increased global competition have all significantly impacted the American job market since the 1950s. It's a complex issue that can't be reduced down to "shifting western gender relations" as the sole cause.
Because market conditions have changed. More international trade and telecommuting and other technology have opened up the labor market and there is a global labor glut.
Because cost of living and cost of higher education is astronomically higher now in comparison to income than they were 65 years ago.
3
Post 9/11 GI bill provides 4 years of college education for free with a stipend rated for average income in the school's zip code. Might be something worth considering for some of you all worried about the cost of tuition for your kids.
Military service in general provides an inflation linked salary, full health care, free private-quality school for the kids, free housing, and all kinds of other tax free benefits, not to mention an inflation linked pension at 20 years. Most of you aren't too old. (I knew lots of people in their 30's, early 40's). The middle class beckons. Head to your nearest recruiting station.
Military service in general provides an inflation linked salary, full health care, free private-quality school for the kids, free housing, and all kinds of other tax free benefits, not to mention an inflation linked pension at 20 years. Most of you aren't too old. (I knew lots of people in their 30's, early 40's). The middle class beckons. Head to your nearest recruiting station.
4
And prepare your mothers wives and children for multiple moves and your long deployments away from them/home overseas sent into that chaos and violence at the whim of chickenhawk politicians, and a possible dead or maimed son daughter spouse or parent in return.
3
Sometimes I wonder if this is the government's long game: Drive everyone down into poverty so that we're all forced to serve in the military out of economic necessity. It's a less politically suicidal strategy for increasing our military than enacting a draft.
1
Erik, while a military career is a good option for some a nation cannot excel with the military being the driving force. History shows militarism has been disastrous for civilizations.
I almost approximated economic security, although at a very modest standard. After 35 years of working, I had a 20% down payment on a 1,000 sq. ft. cottage. I qualified for a mortgage during the crazy time, with the monthly total including escrows at 55% of my take-home pay. All was well enough until my homeowners insurance climbed from $695 annually to $4,020 in the years post-Katrina. I am scraping by from now 'til death. Consumer protections are lacking. Our state insurance commissioner issues positive reports; realities are dire for those in older, smaller housing stock.
When I was a young girl, I was careful to pass for middle class because I observed that poorer people were not safe from various forms of meanness. My current aspirations are for my educated grandchildren to elect Democrats to curb the GOP meanness so obvious in Congress and state houses.
When I was a young girl, I was careful to pass for middle class because I observed that poorer people were not safe from various forms of meanness. My current aspirations are for my educated grandchildren to elect Democrats to curb the GOP meanness so obvious in Congress and state houses.
10
I live in a middle class neighborhood where most of my classmate's parents earn about the same amount of money. Most of the mother's do not work and families are able to survive on one income.
There is no need for my family to save for college as community college will be free and the Cal State system is about $95/semester. My folks expect to payoff the house in the next 10 years.
I guess we have health insurance, but we pay cash when we visit the doctor and I never hear my parents discuss concerns about medical bills, even though my Mom has breast cancer. We don't have cable, but get the major channels with our rooftop antenna.
My Dad gets home from work around 5:30 p.m. every night and we often "waste away" our evenings watching television. Entertainment includes going to pro football games, minor league hockey and major league baseball. Tickets are very affordable.
Welcome to my life growing up in California during the '60's and '70's.
Oh, we did have a very expensive purchase for a color TV which cost more money in 1970 dollars than a HDTV costs today. So, I guess some things are actually more affordable today--but not many.
There is no need for my family to save for college as community college will be free and the Cal State system is about $95/semester. My folks expect to payoff the house in the next 10 years.
I guess we have health insurance, but we pay cash when we visit the doctor and I never hear my parents discuss concerns about medical bills, even though my Mom has breast cancer. We don't have cable, but get the major channels with our rooftop antenna.
My Dad gets home from work around 5:30 p.m. every night and we often "waste away" our evenings watching television. Entertainment includes going to pro football games, minor league hockey and major league baseball. Tickets are very affordable.
Welcome to my life growing up in California during the '60's and '70's.
Oh, we did have a very expensive purchase for a color TV which cost more money in 1970 dollars than a HDTV costs today. So, I guess some things are actually more affordable today--but not many.
22
you can't govern if you can't (politically) tax
2
Middle class comfort vanished when it requires two incomes to raise a family. %0 years ago, it was an option for two incomes; now it is requirement. Housing costs accelerated enough that a job loss could be tragic. Everyone who call themselves "middle class" know they are one day away from losing their jobs. The job that last a lifetime also vanished.
Every family is strained because of monetary issues. Unless, one is in the top income bracket, the average person is wondering what will come next.
As for the so called "recovery", it has yet to trickle down. Wall Street is at record highs, companies are make large profits, but raises are no longer keeping pace with inflation. And the slide continues. How can anyone feel comfortable where prices rise, but not their wages?
Then there is housing, rents cost more than home. Also, anyone with any form of variable length load are dreading the day the Fed starts rising interest rates. Not to mention, we are one world crisis or one burned refinery away from $4/gallon gas. Of course, it is only a matter of time before the US falls into recession; following the trend of Europe and other parts of the world.
Finally, the cost of raising children and paying for their education. Public colleges cost more than private schools 30 years ago.
There is no easy way to be in the middle class and see a rosy picture.
Lastly, with Congress and Obama about to kill Medigap policies, in 2020, that will add to the insecurity those over 65.
Every family is strained because of monetary issues. Unless, one is in the top income bracket, the average person is wondering what will come next.
As for the so called "recovery", it has yet to trickle down. Wall Street is at record highs, companies are make large profits, but raises are no longer keeping pace with inflation. And the slide continues. How can anyone feel comfortable where prices rise, but not their wages?
Then there is housing, rents cost more than home. Also, anyone with any form of variable length load are dreading the day the Fed starts rising interest rates. Not to mention, we are one world crisis or one burned refinery away from $4/gallon gas. Of course, it is only a matter of time before the US falls into recession; following the trend of Europe and other parts of the world.
Finally, the cost of raising children and paying for their education. Public colleges cost more than private schools 30 years ago.
There is no easy way to be in the middle class and see a rosy picture.
Lastly, with Congress and Obama about to kill Medigap policies, in 2020, that will add to the insecurity those over 65.
7
Why do people vote for Republicans, ever?
Republicans gave us the S&L crisis in the 80's with deregulation.
Republicans have been going after unions for decades (see Reagan, Walker).
Republicans blew up the debt, then said they needed to cut Social Security.
Republicans gave tax cuts to the wealthy, first in 2001 then in 2003.
Republicans invaded a country on trumped up charges and put it on credit.
Republicans tanked the economy, then did the massive bailout for banks.
Republicans believe in "free market" economics, until they don't (see above).
Republicans refuse to allow student loans to be renegotiated.
Republicans refuse to fix healthcare.
Wake up Americans, wake up!
Republicans gave us the S&L crisis in the 80's with deregulation.
Republicans have been going after unions for decades (see Reagan, Walker).
Republicans blew up the debt, then said they needed to cut Social Security.
Republicans gave tax cuts to the wealthy, first in 2001 then in 2003.
Republicans invaded a country on trumped up charges and put it on credit.
Republicans tanked the economy, then did the massive bailout for banks.
Republicans believe in "free market" economics, until they don't (see above).
Republicans refuse to allow student loans to be renegotiated.
Republicans refuse to fix healthcare.
Wake up Americans, wake up!
99
The decline in middle class wealth began in 1973. In the 1950's over 90% of vehicles sold in this country were assembled here. Now it's about 45% if you include transplants. Same is occurring is all durable goods and clothing and building materials and food. It's the US not the Republicans. And the propping up of GM only keeps in business a company that deserves bankruptcy.
5
Every thing you write here is true. However, a large number of those who do vote are evidently under the horribly mistaken impression that they are just a lottery ticket away from joining the One Percent. And, of course, if you are a member of the One Percent, you just have to be a member of the GOP, because the GOP wants you to keep all your money, all that money that's just gonna be coming in any day now. So it's an issue of living and voting with your aspirations even if they and the whole ball of wax around them are all unabashedly delusional.
The article's basic premise that "feeling" middle class is part of the experience of "being" middle class is the sort of pandering "news" that they offer on the 20/20 TV show. There's good info in the article dont get me wrong; but I felt my IQ go down reading it overall.
The comments of "I feel like this about my income, so the article is completely true!" are regrettable. But the pandering worked I guess.
There are real factual issues about prolonged wage stagnation in the USA since the 1980's. But no -- Let's talk about our feelings? Argh.
11
Feelings do matter though- people make economic decisions based on mental state as well as financial.
1
I don't know how things will change until we stop interpreting taxes as a dirty word. We need to be able to talk about fair taxation ~ rational taxation. People who are struggling to make ends meet, who are not seeing any increase in income, clearly do not want to get taxed more, although new fees (not called taxes) on basics are just shifting costs that hit low wage earners the hardest. When people write and rail about people with lower incomes voting against their own interests, my guess is that they are attempting to vote FOR their interests in not getting taxed more. What many may not realize is that privatization and tax cutting is not for the benefit of the majority of us. It is for the privileged few and fewer. Without adequate tax revenues from those who are dodging them, we have fewer decently paid government sector jobs, more frustrating transactions, less efficient public services, more thinly stretched public employees. Many may not remember that before Reagan, non-profit health and human services organizations did not have to beg and compete for donations. Like universities, they used to receive meaningful financial investment from the government, for the common good.
220
You're right on all counts here, but the weasel in the room is the yet-unpunished Grover Norquist, who demonized taxation since the 1970s and whose blessing GOP politicians seek. His outsider views on government (it should be shrunk to fit into a bathtub and then be drowned) and taxation have become mainstream.
In 1942, his views would have been considered disloyal and probably helpful to the Axis in their attempt to conquer America. In 2015, his views are considered gospel by the GOP/Tea Party and the Krazy Klowns from Outer Space competing to be their presidential candidates.
In 1942, his views would have been considered disloyal and probably helpful to the Axis in their attempt to conquer America. In 2015, his views are considered gospel by the GOP/Tea Party and the Krazy Klowns from Outer Space competing to be their presidential candidates.
1
This issue is larger than taxes alone.
My father was a SUNY professor who sent 3 of us to college in the early 1970s without incurring debt. Two of us attended SUNY, and one attended private college. Mom didn't work, we owned one automobile, and did go on an occasional "big" vacation. I never felt we were special.
How was this possible? People even had magical things called pensions back then. I don't believe most us feel entitled to a mansion and millions of dollars, but a decent, stable job with some type of retirement shouldn't be considered out of the ordinary.
How was this possible? People even had magical things called pensions back then. I don't believe most us feel entitled to a mansion and millions of dollars, but a decent, stable job with some type of retirement shouldn't be considered out of the ordinary.
66
There has been a change in government policy to accompany many of the losses that the middle class has sustained. There used to be pensions funded by the companies that a person worked for. Then the law was changed to establish 401(k) accounts that the employee had to fund for him or herself. Companies could then feel that it's all right to abolish the pension plan and shift the cost of retirement to the employee. Now pensions are a rarity but probably most people have nowhere near enough in savings to fund a comfortable retirement. They're banking on social security to carry them through but they'll vote Republican regardless, daring the federal government to privatize social security as well. We need to be so much smarter.
2
When your father retired, it is likely his position was closed down rather than refilled. Now, the courses he used to teach are taught by a rotating cast of part-time adjuncts making $2000 or $3000 per class per semester and collecting food stamps on the side to survive. This is the new economy.
1
I was born in 1955 and turn 60 next month. I have prepared carefully for retirement and had a wonderful career along the way. Today I work at a university and worry everyday that students graduating from here won't have it as good as I have. I think often how glad I am that I was born in 1955 and not today!
18
Kind of you to worry about the students, but I suggest you worry about out! I hope you can keep your university job for another five years -- or ore.But do not be surprised if one day before you reach 65 they come for you and move you out the door because you are "too expensive" and "too old." It doesn't matter how big the endowment is, it doesn't matter whether there is a pension or any kind of retirement benefit. You are in the target zone, the bullseye. It is excellent that you have prepared carefully for your retirement. Get ready.
Whenever I think about the future, I feel hopeless, depressed and frustrated. I'm in my 30's earning close to the median for the area, but feel like I'm barely treading water. I'm nowhere close to the standard of living my parents had at this stage in life - owning a home, raising a family, vacations and other small luxuries like eating out, new non-luxury car, retirement savings - all feel out of reach. Rent takes up around 40% of my take home (high cost of living area), cost of necessities (groceries, health insurance, etc) eat up the rest and I'm lucky to have a small bit left to save (which is not enough for a substantial retirement or emergency). I drive a 10+ year old car. Owning a home or starting a family are pipe dreams. I'm one big health emergency or accident away from losing my current "stability".
This is not only my story, but many others as well. I come from a solid middle class background and have advanced degrees. It doesn't matter how hard you work or how educated you are.
This is not only my story, but many others as well. I come from a solid middle class background and have advanced degrees. It doesn't matter how hard you work or how educated you are.
60
The increased cost of housing is huge untold and unexplained story. The influence that property developers have on local politics, county and municipal, and their ability to set rents and limit development in order to keep housing supply low and costs high. Nowhere covered in the media.
6
"Any appeals have to involve both cents and sensibility."
Argh.
Argh.
6
Class is a sociological definition, income is an economic definition and they are not interchangeable although all of our media thinks they are the same thing.
11
It's really interesting to read all of this and think about how I'm going to keep my own family afloat in the coming decades. I'm in my mid-30s, a single mother of two, with a bachelor's degree in a white collar job. I own my home, a very modest ranch that I'm fixing up as I save the money for each project. We go camping for vacation, or visit cities where we have friends or family to stay with. I'm the third owner of my car, which is just fine and I hope to have paid off early. We rarely go to movies, sporting events or out to eat, but when we do it's definitely a treat. The one expense that most people would definitely consider a luxury is sending my sons to parochial school, but we receive substantial scholarships (because of my income) so I'm not paying anywhere near the full price. As someone who was a baby when Reagan was changing the American landscape, I'd say the hardest aspect of being "middle class" is that it's really hard to save. For retirement, for an emergency fund, for vacation, my budget is really tight. If I didn't receive child support, my children would qualify for reduced price lunches, but I'm told at work that I receive a "good salary." How is it a good salary if my children qualify for government aid as I work full time in a field that requires a bachelor's degree?
206
Good questions. You're being gamed by politicians and their sponsors, and these people (who all claim to be "religious") would castigate your single parenthood as somehow second-rate.
1
Big Mistake; you got divorced. You are doing everything right; can't you squeeze your EX for more child support. The $$ spent on parochial school might be a way to save, if you are willing to put the kids in public school.
I'm sympathetic to what you are saying but i think there are some other expenses you are failing to mention. For example, being a single mom is highly inefficient unless you have family nearby that can watch the kids. The cost of child care has risen dramatically in this country. Also, upkeep on a ranch can be very expensive. I would make sure you are getting sufficient returns for your dollar and sweat equity there. Or maybe it's the intangibles you are going for. Finally, there is no need to pay for k-12 school. You are right this is a luxury you prob do not need. Public schools in the midwest are quite fine and expose your kids to a broader swath of society which will benefit them in the long term. Anything extra you could get out of parochial school you can cover in your own home.
Part of the problem, of course, is that this large "middle class" was a post-WWII aberration, likely never to be repeated int he same way.
Under NO CIRCUMSTANCES should a manual laborer EVER be considered "middle class" regardless of the amount of money they make. The middle classes are the classic "petty bourgeoisie" (professionals, small business owners, and skilled labor).
If 90% of us consider ourselves "middle class" the reality is more like 30% of us are really middle class under classic sociological definitions. Tops.
Under NO CIRCUMSTANCES should a manual laborer EVER be considered "middle class" regardless of the amount of money they make. The middle classes are the classic "petty bourgeoisie" (professionals, small business owners, and skilled labor).
If 90% of us consider ourselves "middle class" the reality is more like 30% of us are really middle class under classic sociological definitions. Tops.
11
You can also include tool and die makers in the middle class of old.
2
Congratulations, Kevin Hill! You're about the only one writing here today that gets this vital point.
1
From a strict economic standpoint, the idea/feeling of middle class in America is long gone. Today we have dominant wealth class 1% and the rest of society. Why this useless continuous NYT debate about the middle class?
11
The NYT does this to try to wake people up to the increasing inequity in most every thing in this country so that you will vote differently
4
This article reinforces a very common believe among my peers, the late 30's crowd, GenX, whatever you'd like to call it. Here is my middle class story: Grew up as an only child with a single mom. Neither of my parents ever made more than $40K. I went to a state school on a full half need/half academic based scholarship---graduated with zero debt with a liberal arts degree. Between my wife and I, we are making around $175k, far exceeding my parents, yet we are living paycheck to paycheck. We don't drive extravagant cars, never eat out, and have had to draw from retirement funds in the past to stay above water and send our daughters to pre-school so that we can work. Camp and school alone are $30k a year! Part of me feels fortunate that I have a great income relative to my education, however I feel that even in my current employment state, I need to pursue an entrepreneurial endeavor (or take some sort of additional risk) while maintaining my current job in order to retire with some level of comfort by the time I'm 75!
92
Sorry, pal. You're rich. The 30k for "school" is a dead giveaway.
5
You are living far, far beyond your means. That's the problem. Look at your budget -- stop going on fancy vacations. Get a cheap cellphone and not the latest iPhone. Get rid of cable TV (buy an antenna, they work).
Enroll your children in public school.
When you stop living beyond your means, you will find you enjoy a wonderful feeling of security and peace of mind. Don't buy into every fad and "keeping up with the Jones" temptation.
(It ought to be beyond obvious that nobody can afford to spend 20% of their after tax income on fancy camps and private schools.)
Enroll your children in public school.
When you stop living beyond your means, you will find you enjoy a wonderful feeling of security and peace of mind. Don't buy into every fad and "keeping up with the Jones" temptation.
(It ought to be beyond obvious that nobody can afford to spend 20% of their after tax income on fancy camps and private schools.)
5
Dave, I understand the stress is real but I must say there seems to be an disconnect when a two income household of $175k is living paycheck to paycheck and you have tapped your retirement funds to pay for pre-school.
3
The standard for being middle class in the 1960s-1970's was very simple:
Your kids were going to go to college
You could eat meat every day if you wanted
You could go to the dentist to save your teeth.
Virtually none of these very low standards was the norm in previous generations where no meat, no college and no teeth were almost the norm.
The middle class of today has a significant more number of 'things' than could ever be imagined before 1960. Elite college educations, large homes with swimming pools, four cars and a new $25,000 remodeled kitchen soon defined what 'middle class' status meant.
There is no question that the middle class is in decline but there are many reasons for that decline including technology, overseas manufacturing and a failure of income to keep pace with inflation.That said, recent generations define themselves by what they have and what they own as your article states.
The major shifts began when the middle class no longer believed that State College were good enough for THEIR children and when the middle class decided that cheap health care is better than having to pay for quality health care i.e. spending money on health was no longer important.
The values, work ethic and the need for social standing definitely has changed since the 60s and 70s...Does the middle class bear some responsibility for the current situation....I think so.
(Kids spend thousands for tattoos but would never think of paying to see the dentist every year.)
Your kids were going to go to college
You could eat meat every day if you wanted
You could go to the dentist to save your teeth.
Virtually none of these very low standards was the norm in previous generations where no meat, no college and no teeth were almost the norm.
The middle class of today has a significant more number of 'things' than could ever be imagined before 1960. Elite college educations, large homes with swimming pools, four cars and a new $25,000 remodeled kitchen soon defined what 'middle class' status meant.
There is no question that the middle class is in decline but there are many reasons for that decline including technology, overseas manufacturing and a failure of income to keep pace with inflation.That said, recent generations define themselves by what they have and what they own as your article states.
The major shifts began when the middle class no longer believed that State College were good enough for THEIR children and when the middle class decided that cheap health care is better than having to pay for quality health care i.e. spending money on health was no longer important.
The values, work ethic and the need for social standing definitely has changed since the 60s and 70s...Does the middle class bear some responsibility for the current situation....I think so.
(Kids spend thousands for tattoos but would never think of paying to see the dentist every year.)
10
The Democrats have sold out the working people, time and time again. NAFTA resulted in jobs moving offshore, and the Pacific Trade agreement will result in more jobs moving offshore. We have way too much immigration. All the talk about a global economy -- our elected officials COULD protect but chose not to. It is understandable that the Republicans care only about finding cheap labor. It is unconscionable that the Democrats do.
12
It's so simple. Growth equals optimism. Lack of growth equals pessimism. The boomers came of age in a time of unprecedented growth and were a justifiably optimistic group. In the present age of zero or negative growth, it is unsurprising in the extreme that economic insecurity would rule the day. Real incomes haven't increased since Nixon closed the gold window in 1971, a fact regardless of what one thinks about money.
2
You've got it backwards. Optimism = growth.
In the words of a true creator of the middle class, Henry Ford, "if you think you can or if you think you can't, you're right".
In the words of a true creator of the middle class, Henry Ford, "if you think you can or if you think you can't, you're right".
3
Well Gee I am probably middle class, but with the federal government messing up the economy, threatening to take what wealth I have been able to save, and with my children having jobs at risk sure I am not so happy.
2
Middle class frustration has a lot to do with politics. Many of us are liberal socially, but believe that wealthier Democrats favor all kinds of social programs for the poor, mostly at our expense. Republicans don't burden us with high taxes, but they threaten our existing benefits and have social agendas that many of us consider unpalatable. Social Security and Medicare are the programs we champion most and we believe that they are at jeopardy. The Republicans want to restructure them and the Democrats do nothing to assure that they will survive intact. Typical middle class workers are also under attack. Police officers are widely criticized. Republicans attack teachers while Democrats champion education much more than they champion teachers. Salespeople, particularly car salespeople, are the butt of jokes. Public transportation workers hear only criticism.
Bottom line, most middle class pay their own way and get little support from the government in return. We feel we are widely scapegoated by everyone from the wealthy to the upper middle class to the poor. That, to me, is every bit as frustrating as the seven years I wait to buy a new car.
Bottom line, most middle class pay their own way and get little support from the government in return. We feel we are widely scapegoated by everyone from the wealthy to the upper middle class to the poor. That, to me, is every bit as frustrating as the seven years I wait to buy a new car.
10
The "economic roller coaster" graph is deceptive. It defines economic insecurity as people being on unemployment, welfare, or below the poverty level. The scientific term for this is "shullbit". Those of us in the economy who earn a salary but have no investments, property or otherwise, are a step removed from the brink, but on the brink nonetheless.
3
What % of the middle class vote? Why do so many of the middle class vote for the Know Nothing Party even though that decision is not in their best interest. Do most middle class voters use all of their vacation days? Why do so many complain about people who have a defined pension plan? Why do so many in the middle class support state efforts to become Right to Work states? Who should they really blame?
6
Slowly eroding? not by a long shot.
If my historic paycheck tracked the fullness of my shopping cart and living expenses over the last 30 years— that would be a graph. Theres been a bump since 2009, but the erosion has been steady and long term.
As for a boon year of 200 gazongas— i'm waiting but I am not holding my breath!
If my historic paycheck tracked the fullness of my shopping cart and living expenses over the last 30 years— that would be a graph. Theres been a bump since 2009, but the erosion has been steady and long term.
As for a boon year of 200 gazongas— i'm waiting but I am not holding my breath!
3
Apple Watch is on back-order until June. One in ten families rent storage units. One in three own a Keurig coffemaker - for which they pay an 800% mark-up on the price per ounce of coffee. Americans now spend more in bars and restaurants than they do in grocery stores. Jamberry nails are a thing! Royal Caribbean launches bigger and more luxurious cruise ships each year that never sail empty; week after week they are full. If those businesses were dependent upon the 1% or the poor, they'd be out of business in a flash. It's the middle class keeping them afloat. A middle class with an appetite that exceeds it's income.
We humans are gluttons, and the nature of gluttony is that we are never satiated. We down twice the calories we need and then throw away even more food. En mass, we ripped out Formica to put in Corian, than upgraded to granite which doesn't look as lovely as the quartz countertops and glass tile back-splashes that are currently all the rage. If you middle class folks are depressed about your own lack of comfort -- spend a bit more time with those who are poor. The constant message from the media that you are slipping behind is a charade designed to sell more anti-anxiety medications. No generation that has ever lived has had it as good as you do right now.
We humans are gluttons, and the nature of gluttony is that we are never satiated. We down twice the calories we need and then throw away even more food. En mass, we ripped out Formica to put in Corian, than upgraded to granite which doesn't look as lovely as the quartz countertops and glass tile back-splashes that are currently all the rage. If you middle class folks are depressed about your own lack of comfort -- spend a bit more time with those who are poor. The constant message from the media that you are slipping behind is a charade designed to sell more anti-anxiety medications. No generation that has ever lived has had it as good as you do right now.
56
but families are struggling not because of cruises but because of tuition in the past and the present and the future
Most of those spending are baby boomers, the last age generation to live better than their parents. The largesse is soon to end.
How are we supposed to feel secure when our banks are paying us 0.25% interest on our savings? And they have been doing so since the 2007 economic collapse -- going on 8 years now!! What a huge transfer of wealth from ordinary people to the banksters. The banks are paying us less than inflation.
Who reading this article doesn't know at least one person whose 401K lost a fortune in the market collapses of the late 1990s-early 2000s or in 2007-2009? I know plenty of people, well past retirement age, who are still working because of those stock market disasters. How is anyone supposed to feel secure any more?
Who reading this article doesn't know at least one person whose 401K lost a fortune in the market collapses of the late 1990s-early 2000s or in 2007-2009? I know plenty of people, well past retirement age, who are still working because of those stock market disasters. How is anyone supposed to feel secure any more?
31
Welcome to Republican America!
24
I am one of the luckier ones, yet the reasons for that are themselves suggestive. My partner and I have decent jobs, earning around $180,000 together in NYC, but our salaries have been stagnant for six years--especially mine, in a public university system that continues to demand productivity increases of faculty even as it lards on the administrators and cuts teaching and research resources. We live in Brooklyn and own our own co-op--but we also bought at the bottom of the market, in our late 30s after a decade of saving, and all we could afford was a one-bedroom place in a distant neighborhood. We're not worried about saving for our kids' tuition, but only because we don't want children. We don't have the crushing burden of carrying for our elderly parents, but only because both of mine died at unfairly early ages, and she has only one left. I am thrilled at our economic status, which is much better than my parents' was, but only because I grew up poor with almost no sense of financial security at all. To go to the grocery and not add up every cent is, to me, still exciting.
I could go on and on. We are the "lucky ones," and that says something tremendously disturbing about the state of middle-class America.
I could go on and on. We are the "lucky ones," and that says something tremendously disturbing about the state of middle-class America.
278
You are one of the lucky ones but i'm not sure why that says something disturbing about America. There are disturbing things going on in America but i'm not sure how your experience sheds any light. Your income is puts you in the global 0.01% or something like that. Median income where you live is like 30-40k and you have many times over that so what am i missing here? Because your house is small in one of the most sought-out geographical locations in the world? The fact that your wages are stagnant at a very high level does not move me. Is your performance getting substantially better each year? Or is an increasing annual salary your view of a human right? I suggest you spend some time in a poor country to give you a more realistic perspective.
As many have said, this trend started with Reagan, and has only accelerated in recent years (especially since the 2008 Recession). I am very pessimistic that things will turn around anytime soon, because many people continue to vote against their own self-interest (or don't vote at all). As a result of this, our legislatures are full of anti-government, trickle-down, right-wing GOP extremists who are basically controlled by the big-money corporations (who got them elected in the first place). So now we are in a situation where the ultra-rich control who gets elected, and how they vote. It is a perfect situation for them, and the only thing that could change it is some kind of revolution (and I don't see that happening, as the people that would have to participate seem to be oblivious to their situation, and how it came about)
12
The decades after the Korean War were an aberration as government went into debt to stimulate the economy while at the same time concluding trade agreements that undermined employees who worked for manufacturers.
One would have to go back to the Gilded Age to factor out the distortions to the economy caused by war, deficit spending and outsourcing.
There is a strong correlation with Mrs. Astor's "400" friends (the only people who then "mattered"in Manhattan) and the 400 wealthiest New Yorkers today
in terms of asset ownership and income disparities.
The difference today is that very few at the bottom of the ladder can
envision how they can ever make it to the middle let alone the top.
Rey Olsen
One would have to go back to the Gilded Age to factor out the distortions to the economy caused by war, deficit spending and outsourcing.
There is a strong correlation with Mrs. Astor's "400" friends (the only people who then "mattered"in Manhattan) and the 400 wealthiest New Yorkers today
in terms of asset ownership and income disparities.
The difference today is that very few at the bottom of the ladder can
envision how they can ever make it to the middle let alone the top.
Rey Olsen
3
This good dog and I recently calculated our total net worth and discovered that it amounts to about $25 million, more or less, of which approximately $24,485,000. consists of her value to me. So we know we're rich, and the only thing left for us to do now is figure out how to spend it.
39
Meant to say that the remaining $15,000. consists of my value to her.
9
You sir...have invested wisely:)
Our sense of security began eroding in 2008 when my husband became very ill with an exacerbation of his MS. He worked at Fidelity then and his long term disability coverage was denied so he had to go back to work after short term disability coverage ended, at a lower salary of course. Six months of chemotherapy later to try and stave off his aggressive MS (he showed up for work all during chemo), Fidelity gave him the boot. That was 2009.
There is no security in the workplace, especially when I have witnessed firsthand the depths corporations will sink to. First the insurance company, CIGNA, denied his coverage and then Fidelity asked him to sign a paper not to sue them.
There is no fallback in our country when something like this happens to a family. It's not that he and I are not educated, we are, it's just that until last year, we could not find somewhat stable, decent jobs in our fields. As it is now, I am still on a contractor basis.
But during the time we needed help, it just wasn't there. For example, if you become ill in Germany and are incapacitated for a certain amount of time, you automatically receive benefits at 70% of your salary. That's the benefit of being a German citizen. There's no taking your insurance company to Federal court to try and make them pay. Many other countries around the world do the same. Why can't we do that here?
http://www.pbs.org/wgbh/pages/frontline/sickaroundtheworld/countries/
There is no security in the workplace, especially when I have witnessed firsthand the depths corporations will sink to. First the insurance company, CIGNA, denied his coverage and then Fidelity asked him to sign a paper not to sue them.
There is no fallback in our country when something like this happens to a family. It's not that he and I are not educated, we are, it's just that until last year, we could not find somewhat stable, decent jobs in our fields. As it is now, I am still on a contractor basis.
But during the time we needed help, it just wasn't there. For example, if you become ill in Germany and are incapacitated for a certain amount of time, you automatically receive benefits at 70% of your salary. That's the benefit of being a German citizen. There's no taking your insurance company to Federal court to try and make them pay. Many other countries around the world do the same. Why can't we do that here?
http://www.pbs.org/wgbh/pages/frontline/sickaroundtheworld/countries/
79
A lot of college educated, older, middle income people got hurt in the recession and the following years. Retirement savings were decimated; homes lost or underwater. Many lost good jobs and, given the lack of focus on age discrimination in the workforce, have been left unemployed or underemployed. Their middle class lives have been shattered.
This group gets very little attention from politicians on the left and the right. I've only heard Fed Chair Janet Yellen discuss the problem at length. It's just not a sexy, get out the base topic.
Policies we have implemented that should have helped have often hurt. The ACA is one good example. For the legions of older self-employed and contract workers, unless they had health issues, the law has often led to escalating costs. A recent report by the Government Accountability Office underscored that older Americans on average are paying over 16% of annual income for insurance. The so-called young invincibles we were all so worried would see surging insurance costs? Under 8%.
While a lot of college graduates and younger workers faced a tough job market when the economy collapsed, they will, as things pick up, find their footing and move on. For older out-of-work middle-class Americans the future is much bleaker.
This group gets very little attention from politicians on the left and the right. I've only heard Fed Chair Janet Yellen discuss the problem at length. It's just not a sexy, get out the base topic.
Policies we have implemented that should have helped have often hurt. The ACA is one good example. For the legions of older self-employed and contract workers, unless they had health issues, the law has often led to escalating costs. A recent report by the Government Accountability Office underscored that older Americans on average are paying over 16% of annual income for insurance. The so-called young invincibles we were all so worried would see surging insurance costs? Under 8%.
While a lot of college graduates and younger workers faced a tough job market when the economy collapsed, they will, as things pick up, find their footing and move on. For older out-of-work middle-class Americans the future is much bleaker.
8
Really interesting article, but I think the NYT needs to check its data. The article says that $200K in 2009 dollars was top 4%, but at the end it says $250K is top 5%. Adjusting for inflation, 200K in 2009 is still less than 250K in 2015, in real terms. So is 200K in 2009 dollars top 4%, or is $250K in 2015 top 5%? The latter would imply some middle class income growth, which seems to be the opposite of the story's point.
1
The feeling of security once felt by the middle class has been eroded by 45 years of relentless class warfare waged by the rich and their political minions upon the rest of us. Until we focus directly on the class war that we have been losing and learn to fight back with every weapon at our disposal, we will continue to pile loss upon loss.
To begin with, we should give up the misleading idea of three classes, a lower or working class, a middle class, and an upper class. Instead, we should recognize that a family living from paycheck to paycheck on a quarter of a million dollars has much more in common with a single parent living on $23,000 a year then with an aristo for whom vast wealth is the identifying characteristic. Much better would be to recognize that there are only two classes; people who work for a living and rely on a wage or salary, yes, call them workers, and those who scheme for a living, call them aristos.
We need to forge a "New Working Class" consciousness, broadened to include anyone who works (or wants to work) for a living and who relies on a wage or salary rather than accumulated wealth. To reverse the tide we must recognize the enemy and organize against him. We must realize that the way forward lies not in electoral politics, but rather in learning to attack our destructive form of monopoly capitalism at its roots. Targeted boycotts would be a good start. Control what we can, our own compulsive spending, which enslaves us.
To begin with, we should give up the misleading idea of three classes, a lower or working class, a middle class, and an upper class. Instead, we should recognize that a family living from paycheck to paycheck on a quarter of a million dollars has much more in common with a single parent living on $23,000 a year then with an aristo for whom vast wealth is the identifying characteristic. Much better would be to recognize that there are only two classes; people who work for a living and rely on a wage or salary, yes, call them workers, and those who scheme for a living, call them aristos.
We need to forge a "New Working Class" consciousness, broadened to include anyone who works (or wants to work) for a living and who relies on a wage or salary rather than accumulated wealth. To reverse the tide we must recognize the enemy and organize against him. We must realize that the way forward lies not in electoral politics, but rather in learning to attack our destructive form of monopoly capitalism at its roots. Targeted boycotts would be a good start. Control what we can, our own compulsive spending, which enslaves us.
8
We won the Second World War, and spent the next 40 years spending the profits. The St Ronnie came along, and outspent the Russians, bankrupting them. To avoid bankruptcy ourselves, we then ginned up the treasury printing press, and spent it all. Throw in a couple of wars here and there, and an enormous amount of corruption in congress (Example- Sen Olympia Snowe never made more than $175,000, retires after 18 years with $18,000,000)and we're here. There's plenty of money around, but only a few have got it. Get the picture?
23
Maybe we should abandon the idea of economic or social classes. It's a bad word. Who would want to admit that he is low class or even lower class? How about average? Half the world is above, half below. If one is below average, there's a lot of company. But then again, what are we measuring? If it's wealth or income, we've got to decide whether it is mean average or median average that is the standard. If it is social standing, then we are all over the place. Maybe we should just measure power. Perhaps power over one's life is really the important point. What is average power? The power to buy what you need? Or the power to buy what you want? The power to change jobs? The power to go to the bathroom whenever you want while on the job? Or the power to go to the bathroom at home whenever you want because you have more bathrooms than people living there? However many ways there are to measure power over oneself, there are a couple of very clear points. First, the more power you have to do whatever you want, the higher your social and economic status. Second, very few people have as much power to do what they want as they think a person should have. Third, those that do have enough power to do whatever they want are the ones who rule, and they are not giving up any part of that power any time soon. And all the talk about middle class this or that is just subterfuge propagated by those who rule to try to pacify the rest of us.
1
When I entered college in 1966, I lived in dormitory (for women only) with a house mother and a 10pm curfew (also for women only); when I graduated in 1970, my dormitory was co-ed (without adult supervision) and no one had curfews. My cohort of the baby boomers has lived with dramatic social and economic change our entire lives. We survived recessions, wars that were never declared but vehemently protested, rapid changes in employee benefits and opportunities, mortgage interest rates above 18% and in some professions such as teaching, yearly layoffs and re-hiring. While we exited high school and college into job markets that were restricted, by middle age we were still able to think our life dreams were possible, most of us had paid off our student loans and few of us had moved back into our parents' homes.
Those of us who approached retirement during the Bush II recession lost a significant percentage of the defined contribution retirement accounts we had been forced into by Wall Street's need for our savings. Some of us who were lucky to keep jobs or in careers which will allow us to work into our 70's may seen the benefits of the Obama Recovery. The Medicare health benefits and Social Security we paid for during our working lives are threatened by privatization policies which contend these are unearned "entitlements". Voting is no longer a protected right and corporations have "religion".
My cohort is worried about our futures; we have reasons to be.
Those of us who approached retirement during the Bush II recession lost a significant percentage of the defined contribution retirement accounts we had been forced into by Wall Street's need for our savings. Some of us who were lucky to keep jobs or in careers which will allow us to work into our 70's may seen the benefits of the Obama Recovery. The Medicare health benefits and Social Security we paid for during our working lives are threatened by privatization policies which contend these are unearned "entitlements". Voting is no longer a protected right and corporations have "religion".
My cohort is worried about our futures; we have reasons to be.
264
“The gap between you and them is much bigger than it used to be,” Mr. Frank said. “That’s why people feel more stressed out than they used to.”
For those dentists, etc., making only $250,000 per year, the gap between them and the very rich may be why they feel more stressed; for many Americans, the stress comes from not being able to meet their families' basic needs, no matter how hard they work.
But corporate profits are at record highs, thanks in part to low labor costs.
Maybe it all has something to do with the fact that corporate persons have more "free speech", more Supreme Court "justices", better representation in Congress and better legal protection than most human persons can afford.
For those dentists, etc., making only $250,000 per year, the gap between them and the very rich may be why they feel more stressed; for many Americans, the stress comes from not being able to meet their families' basic needs, no matter how hard they work.
But corporate profits are at record highs, thanks in part to low labor costs.
Maybe it all has something to do with the fact that corporate persons have more "free speech", more Supreme Court "justices", better representation in Congress and better legal protection than most human persons can afford.
27
They own you....they own this country....they own the world......and they are consolidating their power......
12
We are exactly where the 1% want us - anxious, frightened, taking anything they wish to dole out in terms of lower wages, no benefits, no sick days, and the unspoken threat that there are people here illegally and tons of H1B visas to be given to those waiting to take our jobs at less than half current wages.
42
My parents, neither of the college educated, put 4 of their children through college. They truly lived the middle class dream, enabled my social programs implemented by FDR who believed that everyone should have a fair share, and the opportunity to achieve it. As they grew older, they were attracted to the Republican party and began to shift from the democratic principles that served them so well. Here in Illinois, our new Gov Bruce Rauner just gave corporations major tax cuts and slashed social services, many of which serve the disability community. This is opposite of what FDR said: "The test of our progress is not whether we add more to the abundance of those who have much, it is whether we provide enough for those who have too little." Americans don't seem to believe that anymore.
473
FDR has nothing to do with it. It's the disappearance of manufacturing sector jobs that has caused the decline in middle class wealth. This started in 1973.
Your parents are, unfortunately, pretty characteristic of my generation. I was fortunate enough to have a dad who was an FDR democrat to the very end, and as a child of the Sixties, I followed in his footsteps, remaining true to those ideals. But I know plenty of folks in my Boomer age group who made the same transition as did your parents, becoming republicans in their later years, and I see this as one of the most damaging underpinnings of our current shift from democracy to plutocracy. Good luck in your struggle --- I mean that sincerely.
1
Rauner's cut of income taxes saved himself $750,000 in taxes. The slashing of taxes afforded him the opportunity to invent a crisis to further slash services, pensions, and more while demanding higher tuitions. Tragic how he and the 1% in Illinois have gerrymandered a crisis to get back at those they see as losers: professors, teachers, state workers, and all unionized workers.
I'm 34, grew up in a middle-class family (daughter of a technician and a nurse), and would certainly be considered middle-class in terms of my education and income. (I'm an attorney who makes somewhat more than the national average).
In my day-to-day life, though, I live in constant fear of losing my job, of suffering a catastrophic illness that will render me bankrupt, or defaulting on my enormous and non-dischargeable student loans. (Ones that won't be paid off for at least another 20 years). I would like to have children, but don't feel financially able or secure enough to do so-- possibly ever.
But that seems to be fairly typical of people I know in the 21st century middle-class...
In my day-to-day life, though, I live in constant fear of losing my job, of suffering a catastrophic illness that will render me bankrupt, or defaulting on my enormous and non-dischargeable student loans. (Ones that won't be paid off for at least another 20 years). I would like to have children, but don't feel financially able or secure enough to do so-- possibly ever.
But that seems to be fairly typical of people I know in the 21st century middle-class...
213
Thanks for sharing. If you are capable of maintaining a very challenging and high paying job you should be feeling a lot less fear. If you lose your job i'm sure you'll find something perfectly decent. Also, your view of what it costs to live and raise children appears to be very distorted. I recommend you spend some time in a poor country so you can see these things more clearly. Also, your current perception of minimum required comforts in life are really just conditioned by your experience and culture and can be unlearned. It will will make you feel richer and more secure by unlearning what a comfortable lifestyle looks like.
As a millennial, I’ve accrued student loan debt, though it’s low enough that it will eventually be paid off. However, I’m fairly pessimistic beyond that.
Between how rough the job market continues to be—at least if you want to make enough to live on versus working for the minimum-wage—and the ridiculous levels the prices of housing and rentals have reached in recent years, I’m increasingly having my doubts that I’ll ever be “middle-class”, in any meaningful sense of the term
Between how rough the job market continues to be—at least if you want to make enough to live on versus working for the minimum-wage—and the ridiculous levels the prices of housing and rentals have reached in recent years, I’m increasingly having my doubts that I’ll ever be “middle-class”, in any meaningful sense of the term
92
"Even most people earning over $250,000 – the top 5 percent of wage earners – identify as middle class. There’s always someone wealthier around."
I am absolutely stunned by people like this. Really? You're making five times the median FAMILY income of the majority of Americans, but you don't think you're rich? Sorry, pal or gal. You're rich.
And don't give me that malarkey about it being "more expensive to live in high priced areas." Wake up!
The reason it's more expensive to live in those areas is because you have a better quality of life living in those areas. First and foremost, the jobs are higher paying. But also, the schools are better funded. The parks, museums, and recreation are better. The nightlife, shopping, and restaurants are better. The areas are lower in crime and you have better access to healthcare of all kinds. Oh, and the social services -- in case you do fall on hard times -- are a heck of a lot better, too.
If you live in one of those areas, no matter how much you make, you're far, far better off than someone living in, say, Detroit or coal-country Tennessee, or the rest of the country. Period.
Aarrrrgggh! I really wish these dim-wits would look around, not just the rest of America, but the world, too, and see just how darned privileged and affluent they really are!
I am absolutely stunned by people like this. Really? You're making five times the median FAMILY income of the majority of Americans, but you don't think you're rich? Sorry, pal or gal. You're rich.
And don't give me that malarkey about it being "more expensive to live in high priced areas." Wake up!
The reason it's more expensive to live in those areas is because you have a better quality of life living in those areas. First and foremost, the jobs are higher paying. But also, the schools are better funded. The parks, museums, and recreation are better. The nightlife, shopping, and restaurants are better. The areas are lower in crime and you have better access to healthcare of all kinds. Oh, and the social services -- in case you do fall on hard times -- are a heck of a lot better, too.
If you live in one of those areas, no matter how much you make, you're far, far better off than someone living in, say, Detroit or coal-country Tennessee, or the rest of the country. Period.
Aarrrrgggh! I really wish these dim-wits would look around, not just the rest of America, but the world, too, and see just how darned privileged and affluent they really are!
33
The world has never been safer, information has never been freer or more available, and chances of dying by ANY cause is lower now than at any time in recorded history. But people FEEL insecure. Isn't that the story!?
Maybe the problem is too many people thinking (and being told by their "leaders") that they are owed something, and, unlike our forebears, not willing to actually work for it.
All one has to do to succeed is show up on time, work hard, and spend a tiny bit less than they earn. There is no magic genie in the government or anywhere else that can do that for you.
JFK - ask not what your country can do for you, but what you can do for your country.
The era of entitlement and professional victims needs to end. That, and nothing else, is dragging down our industry and our country. It isn't always someone else's fault - in fact, it almost never is.
Maybe the problem is too many people thinking (and being told by their "leaders") that they are owed something, and, unlike our forebears, not willing to actually work for it.
All one has to do to succeed is show up on time, work hard, and spend a tiny bit less than they earn. There is no magic genie in the government or anywhere else that can do that for you.
JFK - ask not what your country can do for you, but what you can do for your country.
The era of entitlement and professional victims needs to end. That, and nothing else, is dragging down our industry and our country. It isn't always someone else's fault - in fact, it almost never is.
5
"All one has to do to succeed is show up on time [and] work hard"
I know plenty of people who did that faithfully for years, only to find themselves suddenly laid off because their jobs were sent overseas. Or were cut to maximize quarterly profits. The notion that employers might have some loyalty to their employees has apparently gone by the wayside in the modern world.
As far as "spending a bit less than you earn", that becomes more and more impossible as basic expenses like health care, housing, and education climb up and up.
You can blame individuals all you want, but we have much more systemic problems in this country. Plenty of folks do everything right (according to your definition) and still end up losing everything.
I know plenty of people who did that faithfully for years, only to find themselves suddenly laid off because their jobs were sent overseas. Or were cut to maximize quarterly profits. The notion that employers might have some loyalty to their employees has apparently gone by the wayside in the modern world.
As far as "spending a bit less than you earn", that becomes more and more impossible as basic expenses like health care, housing, and education climb up and up.
You can blame individuals all you want, but we have much more systemic problems in this country. Plenty of folks do everything right (according to your definition) and still end up losing everything.
10
This all started with the election of Ronald Reagen and has accelerated since!
35
It's very strange that they identified unemployment insurance as a social net item. It's something you paid for -- regardless of income/class you should go get your money if you're unemployed. Just like filing a claim on auto insurance -- I've never heard of a rich person being too rich to make their auto insurance company pay up. A better criteria would be unemployed for six months.
20
Safety net programs are there to catch those who fall, regardless of how it's paid for or how you qualify. We pay taxes and a small portion goes to the programs we hope to never need- Medicaid, TANF, SNAP- but should pursue if we do.
If I had to do it all over again, I'd still go to the great San Francisco Bay Area university I attended, to get not just my BA but also my Masters in my specialized field I love. But, once out of school, if I had to it again, I'd join the local police force of a small city in the Bay Area. Those jobs pay incredibly well, including incredibly great retirement, as well as lifetime medical benefits. And so long as you're a cop in a small town in the SF Bay Area, there's nothing much to worry about other than giving traffic tickets. THAT is what I tell kids who are now getting their BAs from UC Berkeley, Stanford, or wherever . . . but forget about actually *becoming* a lawyer or an engineer or a journalist or whatever profession -- get degree'd in those fields, sure, but after school is out join the local police force **of a small town**, and, on the side, start up a part-time very small business in the field you enjoy for fun. But, they dont seem to mind, let the tax payers finance the pretty cushy life you will enjoy, because you'd not only be set now but you (and your spouse) will be set for life. I actually mean this (no snarkiness intended): if you want to middle class **stability**, go to university and then join the local police force of a small town.
3
Small-town policing can be pretty dangerous these days-- even more rural parts of the country have some serious problems with meth labs, prescription drug abuse and thefts, etc. But the Bay Area doesn't sound so bad!
(I'm definitely with you on talking people out of going to law school, though. In fact, I've made that my unofficial part-time job...)
(I'm definitely with you on talking people out of going to law school, though. In fact, I've made that my unofficial part-time job...)
1
So, all the Reagan, Clinton and Bush tax cuts didn't help the long slow slide into pre death-of-empire stagnation.
6
Also, the younger people are not only going to not make equity with their homes...many are losing equity. While we have had all of our booms and busts, our neighbor to the north has had none because they kept their financial institutions regulated. We are so damaging the younger generations, how will they ever recover?!?
3
The fat cats play with their middle class mouse food before they eat it.
11
The family in the backyard scene from 1957 seems wealthy (house, land, pool, nice food spread). I don't think average middle class people lived like that.
21
There is something to the idea that expectations have become inflated. In my youth, no one renovated their kitchen; they'd replace the linoleum if it had a hole in it. Otherwise, it wasn't considered necessary. You'd buy a new refrigerator when the old one broke down, which it never did because it was built to high standards of durability, unlike anything one buys now. Vacation? camping trips for 2 weeks, one special night in a motel and both of my parents worked, unusual in the 60s. Never ate in restaurants. My mother put a meal on the table every night of the week, with no help from my father, I might add.
4
But…. I also see more people send every dime they make, most don't and won't save got to have the latest phone, TV, etc.
I was taught by my immigrant parents to save every dime, fix things when they break and don't keep up with the Jones. My parents never made more than lower middle income, today they are retire with no worries.
I believe the American dream is still more than possible, but too many watch too much boob tub and want to spend like a rap star, now.
I was taught by my immigrant parents to save every dime, fix things when they break and don't keep up with the Jones. My parents never made more than lower middle income, today they are retire with no worries.
I believe the American dream is still more than possible, but too many watch too much boob tub and want to spend like a rap star, now.
6
No surprise here. America's oligarchs, criminals, and their lackeys in the U.S. Congress are doing just fine. And rest assured that none of them care about the woes of the middle class.
8
"Median per capita income has basically been flat since 2000, adjusted for inflation....And while many goods have become cheaper or better, the price of three of the biggest middle-class expenditures – housing, college and health care – have gone up much faster than the rate of inflation."
but median per capita income has gone up a huge amount since 1957. it also rose in some years during 2001-2007. please use descriptive photographs or analyze trends over several decades. the quality of health care and housing has improved as well since 1957 or even 2000. (the quality college education is debatable.)
"...nearly 80 percent will [see] their income drops near or below the poverty line, or they are compelled to [use social insurance or] unemployment insurance."
what do you expect? we just experienced the great recession. stress and anxiety would be worse without social insurance and unemployment insurance. perhaps you want to say that we should increase funds for these programs? also, don't forget about the earned income tax credit. (this is an especially relevant topic as april 15 approaches.)
editor's note: please use SNAP or EBT instead of "food stamps". the phrase food stamps is from the 1950s or 1960s, and stamps have not been used in decades.
but median per capita income has gone up a huge amount since 1957. it also rose in some years during 2001-2007. please use descriptive photographs or analyze trends over several decades. the quality of health care and housing has improved as well since 1957 or even 2000. (the quality college education is debatable.)
"...nearly 80 percent will [see] their income drops near or below the poverty line, or they are compelled to [use social insurance or] unemployment insurance."
what do you expect? we just experienced the great recession. stress and anxiety would be worse without social insurance and unemployment insurance. perhaps you want to say that we should increase funds for these programs? also, don't forget about the earned income tax credit. (this is an especially relevant topic as april 15 approaches.)
editor's note: please use SNAP or EBT instead of "food stamps". the phrase food stamps is from the 1950s or 1960s, and stamps have not been used in decades.
4
In 1957, I was the age on the woman in the picture. We were solidly middle class. I can assure you, that picture, with not another suburban house in sight and with a swimming pool, would have been considered very upper middle class.
55
The minute corporations decided to sacrifice everything on the altar of shareholder return is when it all started to fall apart.
14
As long as people cast their vote according to their social agenda (abortion, gun control, etc.) and not their economic interest, we will remain in this mess.
48
Please see red states.
Employers have also learned that, if they can get away with designating an employee as "management," they can avoid paying them overtime, regardless of how many hours they are worked. Given all the layoffs triggered by the 2007 depression, employees have no choice but to comply. Some of the gloomy outlook is caused by the fact that many are working harder and longer than ever before, yet there is no hope of higher pay, or that employers will hire more people to pick up the load.
12
Everybody seems to work 60 to 80 hours a week now for what they get. That was not true in the 60s and 70s.
1
The photograph accompanying the article is quite misleading. Any family with a personal swimming pool connected to the home, in 1957, was definitely upper middle class. Pools in those days were a real mark of status.
55
A good point about the pools. They were so much better back then. It is not like today with a small pool built close to the house. The neighbors of my parents who still live in the home I grew up in during the 60's and 70's have an Esther Williams pool that is 20 feet wide by 40 feet long, with a 9 foot deep end. The diving board is gone from the 60's. It is about 20 feet away from the back of their house. It is beautiful. You can swim laps in it. I am most fortunate to be able to borrow it while they spend time in the summer in North Carolina. The pool is simply better than any new one I have seen behind a private home.
During the presidencies of Harry Truman and Bill Clinton, America's economy grew. Jobs were plentiful. The standard of living rose. To create jobs, there must be an educational system that teaches skills and critical thinking There also has to be incentive for entrepreneurs to take risks. Look at all the jobs people like Bill Gates and Steve Jobs created. Finally, the nation needs to stay out of war. At this time, both the Republicans and Democrats are brain dead. The ideas of Thomas Jefferson and Benjamin Franklin helped launch a great country. Let's get back to what America is used to be.
1
Perhaps if more Americans had not blindly idolized the matinee idol from Hollywood, Ronald Reagan, whose dreadful economic policies were responsible for the many ills which continue to befall this country, we would not be in this place today. Yet, the idiocy continues as far too many, brainwashed by Fox News, Rush Limbaugh etal, continue to drink the GOP Kool-Aid while voting against their own interest.
23
Americans find themselves in a trap: the country's economy is over- commercialized up to the point of excessivness. Unfortunately, however, nobody is challenging the parameters of unbridled growth and profit. The auto- pilot of that machine is in need of a general rebooting. Who will be the one to fix this fundamental issue?
3
What a ruse, one that Gruber told us is the basis of the 'middle class' mind set, that being so stupid that they believe there is such a thing as middle class. What you have is increasing income instability from 'being stupid', which is what the politicians count on. The mantra is I will get the middle class moving again, we will tax to get there. Seems, with most Americans, stupid trumps there deprivation. Why are the middle class falling behind? Simple, lack of increasing productivity which is the driver of increasing income.
1
There are a few things to think about sinve 1957:
In 1957, there were very few women in the work force.
In 1957, racism of all types was rampant, segregation was just ending (Brown v. Board of Ed. was decided in 1954).
The 1957 "middle class" was largely achieved by suppressing women and minorities.
In 1957, there were very few women in the work force.
In 1957, racism of all types was rampant, segregation was just ending (Brown v. Board of Ed. was decided in 1954).
The 1957 "middle class" was largely achieved by suppressing women and minorities.
18
Being a housewife, a stay-at-home mom is hardly suppression. It is a gift, that many today would love to have! But yes, most women were not in the work force except as hairdressers, secretaries, school teachers and stewardesses or in retail. All low paying jobs I might add, though school teachers did very well back then. Not anymore.
I graduated into Ronald Reagan's America. Even though "on paper" our income puts us at the top of earnings for the definition of middle class, even though "on paper" we have what some would consider a middling-high net worth, I can never lose my fear that we are just one misstep or bolt-from-the-blue away from complete financial disaster.
6
The top 0.1% have no interest in helping the middle class. The middle class will need to save itself. Is it possible that those trapped in the stagnant middle can stop drinking the Kool-Aid of American consumerism? This may be the salvation. Stop buying junk, duplicate copies of junk and simplify, pare down to the life style I remember growing up in the 1950s. Smaller homes, fewer cars, fewer TVs, and simpler personal electronic must have toys.
7
hahahaha. Try telling that to Americans who think they "deserve" to buy $5 coffees daily or that premium cable is a "necessity" -- who buy their 10 year old children the latest smart phone because "they need it for safety". (Never mind all of us grew up OK with no cell phones at all.)
People have been on a spending binge now for decades, trying to keep up with the "Jones'" who are basically movie stars and celebritards. Then they wonder why they are broke. The answer is in the mirror.
People have been on a spending binge now for decades, trying to keep up with the "Jones'" who are basically movie stars and celebritards. Then they wonder why they are broke. The answer is in the mirror.
3
This should come as no surprise to anyone! There is no job security whatsoever. Jobs are becoming more temporary in nature, even for highly skilled computer professionals like my husband. There are no pensions to provide security, dignity and a light at the end of your working years. More and more, I hear people say that they will have to work until they drop, like a poor workhorse dropping to his knees in exhaustion.
Things we used to do without thinking are now either done after careful consideration, or more often, put off until they become critical in nature. We do repairs to our home to keep it structurally sound, but no new granite counter tops or stainless steel appliances in our kitchen. I still cook from scratch, so that saves us a fortune and we have a healthy diet.
Income-wise, we used to feel that we were near the range to be considered affluent, but certainly not any more. I fear those days are long gone for sure. We will survive, but it won't be with all the bells and whistles we had hoped we would enjoy in our old age.
Things we used to do without thinking are now either done after careful consideration, or more often, put off until they become critical in nature. We do repairs to our home to keep it structurally sound, but no new granite counter tops or stainless steel appliances in our kitchen. I still cook from scratch, so that saves us a fortune and we have a healthy diet.
Income-wise, we used to feel that we were near the range to be considered affluent, but certainly not any more. I fear those days are long gone for sure. We will survive, but it won't be with all the bells and whistles we had hoped we would enjoy in our old age.
10
It definitely feels like it takes more and more money to just to stay afloat.
Just anecdotal, but: ours is a two-income family with a 7-month-old child, and our combined earnings of $120,000 leave us with virtually zero disposable income, despite a decently lean existence. We live in a far-flung suburb of Minneapolis, where housing is (sort of) cheaper, most of our purchases are dictated by need, but student loans and daycare basically eat up whatever disposable income we have. Our last vacation was probably two years ago, when my husband had a higher paying job. God forbid we have an unexpected expense, like a car repair, or doctor's bill. Right now, we're not sure how we'd pay for it. And we keep thinking to ourselves, "This is what $120,000 gets you?"
Just anecdotal, but: ours is a two-income family with a 7-month-old child, and our combined earnings of $120,000 leave us with virtually zero disposable income, despite a decently lean existence. We live in a far-flung suburb of Minneapolis, where housing is (sort of) cheaper, most of our purchases are dictated by need, but student loans and daycare basically eat up whatever disposable income we have. Our last vacation was probably two years ago, when my husband had a higher paying job. God forbid we have an unexpected expense, like a car repair, or doctor's bill. Right now, we're not sure how we'd pay for it. And we keep thinking to ourselves, "This is what $120,000 gets you?"
14
This report is consistent with my experience. I would add that the feeling of insecurity is heightened by the overall unfairness of our society. Whether it is the black man getting picked on by law enforcement, the blue collar worker having to train foreign workers to do the job that he is losing to overseas plants, or the white collar worker who sees his job off-shored or replaced with low wage foreign green card workers the end result is uncertainty and fear of the future. We need to find a way to level the playing field and it is not more laws. Lets get the lawyers out of government and share the wealth. Vote appropriately.
2
Oh dear. If you take government work away from lawyers they will really be up a creek. There must be another profession in less dire straits..
We are doing fine and I believe my parents were doing fine because they lived in a pretty tony area but I still remember some of the money saving things they did (this was late 60's early 70's).
On my father's car, a Dodge Dart, the only options on it were an automatic transmission and the blue strip at the top of the windshield to reduce glare. Not even an AM radio! Vinyl floor. Mother's car had an AM radio! When we went on trips, we took a cooler full of food and ate out of it all week. We rented motel rooms with kitchenettes and cooked every meal there. We went out to eat perhaps four times per year. They did not get color TV until 1983 and therefore I was never aware that the imaginary part of the Wizard of Oz was in color. When I wanted a skateboard my dad asked a colleague to cut out the deck from scrap aluminum. We sat on vinyl cushions in the family room until the mid 1970's. And so on. And this was in a family with income well above the median!
On my father's car, a Dodge Dart, the only options on it were an automatic transmission and the blue strip at the top of the windshield to reduce glare. Not even an AM radio! Vinyl floor. Mother's car had an AM radio! When we went on trips, we took a cooler full of food and ate out of it all week. We rented motel rooms with kitchenettes and cooked every meal there. We went out to eat perhaps four times per year. They did not get color TV until 1983 and therefore I was never aware that the imaginary part of the Wizard of Oz was in color. When I wanted a skateboard my dad asked a colleague to cut out the deck from scrap aluminum. We sat on vinyl cushions in the family room until the mid 1970's. And so on. And this was in a family with income well above the median!
11
When I visited my in-laws in Greenwich, CT some years ago, I felt poor, with no hope of ever being able to afford the homes and cars that people 10 years younger than me were buying more regularly than I buy shoes.
When I began learning about the median per capita income in the world (~$2/day), I felt rich. Unlike most of the rest of the world's population, I don't worry about how I'll afford safe food and water, where I'll find shelter, or if I'll be able to get health care, for me or my family, and my neighborhood is safe. Accordingly, now I feel like one of the luckiest people on the planet, and not so poor.
Things are often a matter of perceptions and expectations. Though I enjoy a modest lifestyle with a few luxuries, I do my best to save as much as I can for my kids, because I suspect they won't have it as easy as I do.
When I began learning about the median per capita income in the world (~$2/day), I felt rich. Unlike most of the rest of the world's population, I don't worry about how I'll afford safe food and water, where I'll find shelter, or if I'll be able to get health care, for me or my family, and my neighborhood is safe. Accordingly, now I feel like one of the luckiest people on the planet, and not so poor.
Things are often a matter of perceptions and expectations. Though I enjoy a modest lifestyle with a few luxuries, I do my best to save as much as I can for my kids, because I suspect they won't have it as easy as I do.
10
It used to be that politicians courted people as "upright citizens", "right thinking", "God-fearing" etc. All things that are no longer universal as badges of self-identification.
Enter "middle class".
That's all it is: a badge that people think they can wear, that they want to wear, and that politicians can use to convince them that they, the wise and noble politicians, are addressing people whose best interests they hold dear.
Unprintable dismissive expression.
Enter "middle class".
That's all it is: a badge that people think they can wear, that they want to wear, and that politicians can use to convince them that they, the wise and noble politicians, are addressing people whose best interests they hold dear.
Unprintable dismissive expression.
1
The rising power of the Republican Party fostered the key policies which caused the reduction in real middle income wages: the false ideology of "free trade", the false ideology of small government, several Trillion Dollar wars of stupidity and counting, low taxes on the rich, a smaller IRS to facilitate tax evasion by the rich, deregulation of finance (especially Wall Street), and a super-low minimum wage.
The good news is the bad news: these were self-inflicted policies, made possible mostly by ignorant white people who vote Republican for racist reasons, even though Republican policies hurt their economic conditions.
In politics, spite is more powerful than common sense.
The good news is the bad news: these were self-inflicted policies, made possible mostly by ignorant white people who vote Republican for racist reasons, even though Republican policies hurt their economic conditions.
In politics, spite is more powerful than common sense.
5
The middle class's first mistake was allowing itself to be defined by level of consumption rather than by values.
Thrift, deferred gratification, family meals, stable neighborhoods, literacy for its own sake, all sacrificed to display, status, mobility, ease, speed, convenience, all financed by borrowing.
Thrift, deferred gratification, family meals, stable neighborhoods, literacy for its own sake, all sacrificed to display, status, mobility, ease, speed, convenience, all financed by borrowing.
11
Middle income does not mean middle class. Many of us who are earning $50,000 a year are renting our homes, driving fifteen-year-old cars, and barely staying afloat. We're a paycheck from disaster. Yet another reason that the nation needs to move from income taxes to consumption taxes with rebates up to a certain level of spending on necessities, coupled with a wealth tax that assesses all assets, including real estate, stocks, bonds, etc.
10
Five years ago, my wife and I were assigned to a dinner table during a four day vacation . Two other couples from a growing company were at the same table. I mentioned the use of a Value Added Tax in France, were my son was working. Everyone had basic health care and everyone was covered for higher education where they could compete for the limited number of slots for a specific degree. Both couples thought these were terrible ideas. No amount of discussion changed their minds. They could not see why their employees needed a tax on fast food to provide everyone with healthcare and education.
The economy eventually helped change their mind. SCADENFREUDE! Their company went bankrupt because of mismanagement. One executive was personally bankrupted when medical bills for his wife's breast were denied by the insurer. The other couple had to take their children out of private school/college because they could not afford the tuition and living expenses.
The economy eventually helped change their mind. SCADENFREUDE! Their company went bankrupt because of mismanagement. One executive was personally bankrupted when medical bills for his wife's breast were denied by the insurer. The other couple had to take their children out of private school/college because they could not afford the tuition and living expenses.
15
I feel like there used to be a collective national ethos that said, "We have arrived, we deserve this good life, we worked hard and now we get a car and swimming pool." I don't feel like that exists anymore. In the rush to create opportunities where money could flourish and possibly make everyone rich the institutions that allowed collective prosperity have eroded leaving a smaller wealthy class and a middle class that's struggling to hold it together. It's worth looking into our nations beliefs that allowed the middle class to flourish in the 50's through the 70's, and to examine how those beliefs have changed since then.
2
Having worked my way into the middle class after many years of sacrifice and single minded focus, two things continue to be of major concern to me: The first being the passivity of my fellow middle class citizens who seem to be so apethetic at witnessing the wholesale crumbling of the American Dream right before our eyes. The second and more important concern to me is knowing that as it stands now, unless there are radical changes made to the system in the next few years, our childern will not have the same opportunites that we had to advance themselves, irregardless of individual effort or merit.
3
I grew up on the lower end of the middle class spectrum. I was taught to believe that if I was able to get a college degree (even if it was from a small local college) and if I worked hard and was lucky to land a good job that I could climb the ladder of success.
As I raised my own children this began to change. No longer was a simple college degree any sort of ticket to success. Highly recognized degrees from more prestigious universities became mandatory along with an additional post graduate degree as well from an equally stellar institution.
Not very many people can afford this nowadays along with the associated costs of healthcare, taxes, & general living expenses.
And so, my advice in today's world to any young person of limited means would be: 1) study really hard and go to an Ivy League University on scholarship, make good friends and hope to someday join the ranks of the elites. 2) Drop out of school and go immediately on the government dole and have someone else pay for your housing, healthcare and most of your everyday needs. 3) Get a government job...guaranteed life time employment with a full array of benefits, retire early with a large guaranteed pension, your HC paid for, and live out your golden years in comfort.
Working hard & getting lucky is no longer in the equation for the vast majority.
As I raised my own children this began to change. No longer was a simple college degree any sort of ticket to success. Highly recognized degrees from more prestigious universities became mandatory along with an additional post graduate degree as well from an equally stellar institution.
Not very many people can afford this nowadays along with the associated costs of healthcare, taxes, & general living expenses.
And so, my advice in today's world to any young person of limited means would be: 1) study really hard and go to an Ivy League University on scholarship, make good friends and hope to someday join the ranks of the elites. 2) Drop out of school and go immediately on the government dole and have someone else pay for your housing, healthcare and most of your everyday needs. 3) Get a government job...guaranteed life time employment with a full array of benefits, retire early with a large guaranteed pension, your HC paid for, and live out your golden years in comfort.
Working hard & getting lucky is no longer in the equation for the vast majority.
3
In New Orleans,Louisiana the middle class suffer even more!
After Hurricane Katrina there was a building boom for construction workers of all crafts. Education, or to be more direct public education and professionals involved in that field suffered greatly. Education professionals scrambled to surrounding parishes to find employment.Teach for America and similar corporations have lowered the bar for the middle class educators in the South.
Middle class is relative to the region you inhabit in the a United States.
When the middle class falls apart crime increases.New Orleans crime wave is clearly proof of that result!
The South has never proven it know show to public educate its citizens.
After Hurricane Katrina there was a building boom for construction workers of all crafts. Education, or to be more direct public education and professionals involved in that field suffered greatly. Education professionals scrambled to surrounding parishes to find employment.Teach for America and similar corporations have lowered the bar for the middle class educators in the South.
Middle class is relative to the region you inhabit in the a United States.
When the middle class falls apart crime increases.New Orleans crime wave is clearly proof of that result!
The South has never proven it know show to public educate its citizens.
4
I live in what the Victorians would have referred to as "genteel poverty." I come from a respectable middle-class background, and I have two college degrees. Unfortunately, my work as an adjunct college instructor means that I have little income and reside in the lower class in economic terms. I rent, and I pinch every penny. An historical line of vicars, schoolmasters, widows, and spinsters would recognize my condition. We're going back to the 19th century, and I am, sadly, leading the way.
89
What's not captured in a lot of these types of surveys is the geographic variability inherent in so many of these income scales.
Many of the job gains since the recession have been in major metro areas like the SF Bay Area and NYC. Great that there's jobs there, but the cost of living is those places is astronomical.
My wife and I live in Brooklyn. We're highly educated professionals (I have a PhD and she has an MBA), and together we earn about $250-300k/year. We're certainly not struggling but in way do we feel affluent. We're renting our apartment and would like to own a house, but the combination of astronomical real estate taxes, inflated housing prices, and the cost of child care means that we have to either resign ourselves to painfully long commutes or drastically lower our expectations in terms of what we can afford. We're talking 1800 square foot split levels build in the 60s on 1/4 acre lots, hardly the lap of luxury.
And that's on a salary that in many other places around the country would allow for an extravagant standard of living. But here in NYC we're middle class - and we're not alone. The skewed income distribution means that many of us who are lucky enough to have "good" jobs in these expensive areas really aren't getting ahead in any meaningful way.
Many of the job gains since the recession have been in major metro areas like the SF Bay Area and NYC. Great that there's jobs there, but the cost of living is those places is astronomical.
My wife and I live in Brooklyn. We're highly educated professionals (I have a PhD and she has an MBA), and together we earn about $250-300k/year. We're certainly not struggling but in way do we feel affluent. We're renting our apartment and would like to own a house, but the combination of astronomical real estate taxes, inflated housing prices, and the cost of child care means that we have to either resign ourselves to painfully long commutes or drastically lower our expectations in terms of what we can afford. We're talking 1800 square foot split levels build in the 60s on 1/4 acre lots, hardly the lap of luxury.
And that's on a salary that in many other places around the country would allow for an extravagant standard of living. But here in NYC we're middle class - and we're not alone. The skewed income distribution means that many of us who are lucky enough to have "good" jobs in these expensive areas really aren't getting ahead in any meaningful way.
140
You may not feel affluent, but you are. My husband, daughter and I live in NYC too, with an annual household income of about $145,000 a year, and I feel pretty fortunate.
Given how many people living in New York are really struggling, it's a bit unseemly to talk about having to "drastically lower our expectations of what we can afford," when lots of people don't even have the option of making that choice.
Given how many people living in New York are really struggling, it's a bit unseemly to talk about having to "drastically lower our expectations of what we can afford," when lots of people don't even have the option of making that choice.
8
JEM - you're absolutely right, and that's the perversity of the whole situation. Through whatever combination of good fortune and hard work got us to this point of objectively doing quite well (we have no illusions about that) - it still feels like our largest achievement is not having to struggle. Is that what it means to be middle class now?
I have nothing but the utmost sympathy for others who aren't as fortunate as we have been, and I thank my lucky stars that my biggest problem seems to be figuring out how to balance a potentially terrible commute with a slightly more spacious house.
I have nothing but the utmost sympathy for others who aren't as fortunate as we have been, and I thank my lucky stars that my biggest problem seems to be figuring out how to balance a potentially terrible commute with a slightly more spacious house.
1
I don't mean to sound disrespectful, but you don't feel like you're getting ahead on a household income of $300,000?! How about join the real word and surviving in NYC on $40/50/60k. Then you'll understand what economic insecurity is. By the way, I'm not trying to take anything away from what you earn because of the success you've worked for, all power to you. I'm just trying to explain the reality for most people.
2
Look at the period from 1900 to 1960
My grandparents one of whom lived in a lean to in S. Illinois as a child, married, 6 children who saw post war US with all its middle class possibilities. As children they lived thru the Depression, and a World War on 2 fronts.
As one of their children, I have seen my children squeezed by education costs, ability to buy a house and to provide child care for their children.
My mother born in 1925 was home, I started work as a 17 year old in 1963, I never felt a kind of "middle class" status because my parent raised during the 30s and 40s were tight with their money.
Middle class is relative to time and place, it's fleeting.
My grandparents one of whom lived in a lean to in S. Illinois as a child, married, 6 children who saw post war US with all its middle class possibilities. As children they lived thru the Depression, and a World War on 2 fronts.
As one of their children, I have seen my children squeezed by education costs, ability to buy a house and to provide child care for their children.
My mother born in 1925 was home, I started work as a 17 year old in 1963, I never felt a kind of "middle class" status because my parent raised during the 30s and 40s were tight with their money.
Middle class is relative to time and place, it's fleeting.
1
A middle-class existence, when I grew up, was considerably less affluent than it is today. My father worked in a factory and my parents owned a home in a quiet suburban neighborhood - the home was 1,300 square feet, which is considered tiny today. It was enough to raise 2 children however, and a couple of dogs. My sister and I had to share a bedroom (and it was quite an occasion when my father built a spare room on the back of the garage and it became my very own bedroom at age 14). There was only one family car, although my father later had a series of used trucks for his would-be business. My mother didn't work for most of my growing up.
This was considered middle-class in the 1980s. Today, we would be considered "lower middle class" at best.
Living in a 3,000 square foot home, with two or more cars, taking vacations every year (especially European vacations), sending the kids to camp, etc - this would have been considered "upper class" to my family and everyone else in the middle class that we knew.
What happened?
This was considered middle-class in the 1980s. Today, we would be considered "lower middle class" at best.
Living in a 3,000 square foot home, with two or more cars, taking vacations every year (especially European vacations), sending the kids to camp, etc - this would have been considered "upper class" to my family and everyone else in the middle class that we knew.
What happened?
20
Yeah, exactly, I see this all the time. "We only have one car! And it's old!" While I have no car, can't afford it. We were kind of poor growing up, we made pizza out of toasted white bread. Nothing fancy until later when by coincidence the Internet became important. Now it's relatively easy to learn the skills that are in demand if you have the willpower.
2
I think that is still upper middle class, we just have HGTV and other media to make it look like that's common, and some people in the middle or lower middle try to keep up with that level of consumption.
It's struck me how many people spend because they "deserve" something for their hard work. Certainly a splurge can provide much needed mental health respite. But it should still be in line with your income. I had a coworker who took her daughter to Disney every year, but the family had no college savings for the kid who was in her teens when I left that job. I could understand a trip, but Disney even every five or six years could have helped cover a semester.
It's struck me how many people spend because they "deserve" something for their hard work. Certainly a splurge can provide much needed mental health respite. But it should still be in line with your income. I had a coworker who took her daughter to Disney every year, but the family had no college savings for the kid who was in her teens when I left that job. I could understand a trip, but Disney even every five or six years could have helped cover a semester.
Does the Times truly want to know the stories of the vanishing middle class? They don't really fit in with the endless front-page "What you get for $1,000,000 $2,000,000, $5,000,000..." and "Big Ticket" real-estate stories, so let's keep them relegated to the comments section. This article talks in vague generalities using terms with floating and unspecific meanings. There are very concrete reasons for the collapsing middle-class and its "anxiety": stagnant wages; the massive destruction of wealth by the obscene financial cabal that owns the Congress; the inability to make any income from savings, or from investing in a totally-rigged stock market; decades of deliberate domestic jobs destruction; government policies based on the ridiculous fabrication and lie of low inflation; constant threats by the "government of the people" to destroy Medicare and Social Security; hopelessness in the face of the corporate takeover of the legislative process; the abandonment of our educational system; the overall lack of investment in the commonwealth; and the absurd proportion of national wealth dedicated to the military and foreign military involvements.
67
I am 35 years old. When my father was my age, he had a home, a full time job, spectacular benefits, two children, and a wife who was able to stay home most of the time.
I am a college graduate, with a full-time job. But at this point in my life, despite a modest lifestyle and a strong watch on my finances, I cannot fathom owning a home. I have college loan debt, credit card debt (from what college loans would not supplement in my education). My health benefits are a laughable shadow of what my father was able to secure at my age. No dental. No vision. Raising children, even with an employed partner, is incomprehensible when my wage against the ever increasing cost of living barely keeps me afloat.
This didn't happen out of nowhere. We have had 35 years of economic policies which gutted the middle class for the benefit of the 1%. Jobs were outsourced. Unions were busted. All costs were shunted on to the middle class and the poor- those who could least afford it. There is no job training any more- it's up to you to "reinvent yourself". Benefits (when they exist) are pathetic. Retirement funding is a dice roll at the rigged Wall Street casino. Employees are considered liabilities, as opposed to assets. And yet, corporate profits have never been higher.
It is nearly impossible to maintain faith and optimism in our nation when the politicians we elect are either openly hostile and sadistic toward the middle class and the poor, or too cowardly and corrupted to fight back.
I am a college graduate, with a full-time job. But at this point in my life, despite a modest lifestyle and a strong watch on my finances, I cannot fathom owning a home. I have college loan debt, credit card debt (from what college loans would not supplement in my education). My health benefits are a laughable shadow of what my father was able to secure at my age. No dental. No vision. Raising children, even with an employed partner, is incomprehensible when my wage against the ever increasing cost of living barely keeps me afloat.
This didn't happen out of nowhere. We have had 35 years of economic policies which gutted the middle class for the benefit of the 1%. Jobs were outsourced. Unions were busted. All costs were shunted on to the middle class and the poor- those who could least afford it. There is no job training any more- it's up to you to "reinvent yourself". Benefits (when they exist) are pathetic. Retirement funding is a dice roll at the rigged Wall Street casino. Employees are considered liabilities, as opposed to assets. And yet, corporate profits have never been higher.
It is nearly impossible to maintain faith and optimism in our nation when the politicians we elect are either openly hostile and sadistic toward the middle class and the poor, or too cowardly and corrupted to fight back.
763
Perfectly said, Dominic!
1
You have to just say it. These are the results of the Reagan presidency and then the Bush II presidency. Don't dance around the facts. These are deliberate Republican policies that lead to this situation. Period.
But, hey. I'd like to have a beer with those guys. And they liked guns. Hahahaha.
But, hey. I'd like to have a beer with those guys. And they liked guns. Hahahaha.
3
Remember Ross Perot's quip about that "Giant Sucking Sound ?"
The sound of jobs disappearing still resonates all across America and is the new great equalizer.
So sad.
The sound of jobs disappearing still resonates all across America and is the new great equalizer.
So sad.
2
There is perhaps no better measure of how the playing field has changed for middle class families than this example.
When I attended a private, Catholic 4-year university in the NYC metro area from the early to mid 1970s, the entire cost of tuition for the four-year period (not room and board) was anywhere from $10,000 to $13,000. And when I graduated with a bachelor's degree, there was a good chance my first job would pay me an annual salary equal to what I spent for four years of college tuition.
My one additional year of graduate school at a private, Tier 1 university (a free ride, as I had a teaching assistantship) would have cost an additional $5,000. So $15K in all for 5 years of college and grad school. Even if I had to take out loans for some of that, my earnings would have outpaced my debts in short order.
Today? A Tier 1 4-year private university can easily cost $50K, $60K, and more PER YEAR. Yet graduates of those universities are fortunate to earn that amount for a year's salary, or about 1/4 of their total college tuition cost. (Again, I'm leaving out room and board.)
And there is the biggest contrast in the middle class lifestyle over the last 45 years: Affordable higher education doesn't exist anymore. No wonder younger families are "feeling economically insecure."
When I attended a private, Catholic 4-year university in the NYC metro area from the early to mid 1970s, the entire cost of tuition for the four-year period (not room and board) was anywhere from $10,000 to $13,000. And when I graduated with a bachelor's degree, there was a good chance my first job would pay me an annual salary equal to what I spent for four years of college tuition.
My one additional year of graduate school at a private, Tier 1 university (a free ride, as I had a teaching assistantship) would have cost an additional $5,000. So $15K in all for 5 years of college and grad school. Even if I had to take out loans for some of that, my earnings would have outpaced my debts in short order.
Today? A Tier 1 4-year private university can easily cost $50K, $60K, and more PER YEAR. Yet graduates of those universities are fortunate to earn that amount for a year's salary, or about 1/4 of their total college tuition cost. (Again, I'm leaving out room and board.)
And there is the biggest contrast in the middle class lifestyle over the last 45 years: Affordable higher education doesn't exist anymore. No wonder younger families are "feeling economically insecure."
295
Like so many others, my story is similar ...if you can't afford to educate your child without one of you going into immense debt, then, hello, you aren't 'middle class.'
"Again, I'm leaving out room and board". No you are not.
My wife and I just finished paying for the fifth child to graduate from law school. Not we are looking at helping the first grandchild. The tuitions at :
MIT=$43,720.
Duke=$47,488
Harvard=$43,938
Penn=$43,838
Since this grandchild will receive NO help from her father, we hope that she will be eligible for some reduction in the tuition charges listed above. Room, board, clothing, etc. are about the same at Podunk U or the four colleges listed. Only time will tell.
My wife and I just finished paying for the fifth child to graduate from law school. Not we are looking at helping the first grandchild. The tuitions at :
MIT=$43,720.
Duke=$47,488
Harvard=$43,938
Penn=$43,838
Since this grandchild will receive NO help from her father, we hope that she will be eligible for some reduction in the tuition charges listed above. Room, board, clothing, etc. are about the same at Podunk U or the four colleges listed. Only time will tell.
May I tout universities like Rowan University? Between the low tuition and the very decent merit scholarships given to a high percentage of students, you can get a superior education for a fraction of the cost of most schools. Don't turn up your noses at good state schools. Nowadays the idea of putting yourself in debt to the tune of $200,000 for a bachelor's degree is simply stupid. (And I wouldn't have said that ten years ago.)
I'm self employed, healthy, well-educated and travel overseas a lot. I realize that a lot of this is luck. I chose my parents really well.
We are all dealing with demographics, an aging population, automation, etc. However, many countries do much more with much less. They have much less expensive healthcare and good education for all, and a great safety net for the poor, sick and disadvantaged. Most of my overseas friends are more secure and much better prepared for retirement, than many of my US friends.
Overseas visitors are critical of our poverty, poor infrastructure, gun deaths, number of people in prison and our outrageous military waste in lives and money. They can't believe that we run healthcare and prisons for profit and pay for education out of real estate taxes. "That's evil!"
I've come to believe that our politicians are rational within a broken system, owned by the lobbies. It's sad and we have little excuse. I am distressed that so many people here vote against their self interest and that we are too arrogant to learn from other countries. Everyone is too busy working to read or travel. So much for quality of life and security, let alone American Exceptionalism.
We are all dealing with demographics, an aging population, automation, etc. However, many countries do much more with much less. They have much less expensive healthcare and good education for all, and a great safety net for the poor, sick and disadvantaged. Most of my overseas friends are more secure and much better prepared for retirement, than many of my US friends.
Overseas visitors are critical of our poverty, poor infrastructure, gun deaths, number of people in prison and our outrageous military waste in lives and money. They can't believe that we run healthcare and prisons for profit and pay for education out of real estate taxes. "That's evil!"
I've come to believe that our politicians are rational within a broken system, owned by the lobbies. It's sad and we have little excuse. I am distressed that so many people here vote against their self interest and that we are too arrogant to learn from other countries. Everyone is too busy working to read or travel. So much for quality of life and security, let alone American Exceptionalism.
28
"Similarly, nearly 80 percent will at least temporarily plunge into a red zone, where their income drops near or below the poverty line, or they are compelled to gain access to a social safety net program..."
Simply, to say it clearer, 80% of those who think are Middle Class are no longer Middle Class under any objective definition.
In fact, given the poverty line is highly underestimated --in 2013, about 28,500 for a family of five, probably about 90% of those claiming the Middle Class mantle are simply part of the Poor --no way around it.
As hurtful as this might be to one's ego and sense of standing, only when a citizen recognizes their actual place in the income scale, can a person begin to identify with what their actual interests are.
While upper Middle Class and Upper Class Americans should rationally advance their interests in the form of deregulation, low tax rates for the top brackets, and promote offshoring of jobs to increase returns on capital, not a single bit of this agenda benefits the great majority of those who think of themselves as "Middle Class."
Only by being honest with themselves, can the majority of Americans begin to think what policies and political positions they should be voting for. Perhaps the time to begin doing this is now.
Simply, to say it clearer, 80% of those who think are Middle Class are no longer Middle Class under any objective definition.
In fact, given the poverty line is highly underestimated --in 2013, about 28,500 for a family of five, probably about 90% of those claiming the Middle Class mantle are simply part of the Poor --no way around it.
As hurtful as this might be to one's ego and sense of standing, only when a citizen recognizes their actual place in the income scale, can a person begin to identify with what their actual interests are.
While upper Middle Class and Upper Class Americans should rationally advance their interests in the form of deregulation, low tax rates for the top brackets, and promote offshoring of jobs to increase returns on capital, not a single bit of this agenda benefits the great majority of those who think of themselves as "Middle Class."
Only by being honest with themselves, can the majority of Americans begin to think what policies and political positions they should be voting for. Perhaps the time to begin doing this is now.
6
Undoubtedly, part of post-war prosperity was driven by the fact that the U.S. was physically unscathed by war, and the dominant economic power. But that era of prosperity was also driven by a generation in which millions of men had gone to war and weren't thereafter going to accept economic policies that favored the few. Whatever career called to them after the war, there was a collective sense that every one of them was entitled to a share of the prosperity their victory had delivered. So this was an era was marked by unionism, defined benefit pensions, and higher taxes on the wealthy.
This began to change in the 1980s with rise of the Baby boomer generation, and their sense of entitlement, borne of nothing. Those at the top demanded ever larger shares of the income stream, and further demanded a reduction in their tax burden. And in many industries, Baby boomer leaders provide little opportunity to climb the ladder that the previous generation had offered to them. Even for many white collar workers, Baby boomer leaders have quite consciously pulled the ladder up so that the lowest rungs are ever harder to reach. For example, the collusion in the tech industry which kept wages of high skilled workers low.
The dominant economic principles for the last generation have shifted economic risks onto workers, shunted wealth to the few, while implementing a more regressive tax burden and minimizing public investment. How then is someone to enter the middle class?
This began to change in the 1980s with rise of the Baby boomer generation, and their sense of entitlement, borne of nothing. Those at the top demanded ever larger shares of the income stream, and further demanded a reduction in their tax burden. And in many industries, Baby boomer leaders provide little opportunity to climb the ladder that the previous generation had offered to them. Even for many white collar workers, Baby boomer leaders have quite consciously pulled the ladder up so that the lowest rungs are ever harder to reach. For example, the collusion in the tech industry which kept wages of high skilled workers low.
The dominant economic principles for the last generation have shifted economic risks onto workers, shunted wealth to the few, while implementing a more regressive tax burden and minimizing public investment. How then is someone to enter the middle class?
3
Except for periods in the 1950s and 1960s and possibly the 1990s when tax rates on the rich just happened to be high enough to prevent overinvestment, the economy has generally suffered from periodic overinvestment cycles. It is not just a coincidence that tax cuts for the rich have preceded both the 1929 and 2007 depressions. The Revenue acts of 1926 and 1928 worked exactly as the Republican Congresses that pushed them through promised. The dramatic reductions in taxes on the upper income brackets and estates of the wealthy did indeed result in increased savings and investment. However, overinvestment (by 1929 there were over 600 automobile manufacturing companies in the USA) caused the depression that made the rich, and most everyone else, ultimately much poorer. Since 1969 there has been a tremendous shift in the tax burdens away from the rich and onto the middle class. Corporate income tax receipts, whose incidence falls entirely on the owners of corporations, were 4% of GDP then and are now less than 1%. During that same period, payroll tax rates as percent of GDP have increased dramatically. The overinvestment problem caused by the reduction in taxes on the wealthy is exacerbated by the increased tax burden on the middle class. While overinvestment creates more factories, housing and shopping centers; higher payroll taxes reduces the purchasing power of middle-class consumers…” http://seekingalpha.com/article/1543642
3
Undoubtedly, part of post-war prosperity was driven by the fact that the U.S. was physically unscathed by war, and the dominant economic power. But that era of prosperity was also driven by a generation in which millions of men had gone to war and weren't thereafter going to accept economic policies that favored the few. Whatever career called to them after the war, there was a collective sense that everyone of them was entitled to a share of the prosperity their victory had delivered. So this was an era defined benefit pensions and higher taxes on the wealthy.
This began to change in the 1980s with rise of the Baby boomer generation, and their sense of entitlement, borne of nothing. Those at the top demanded ever larger shares of the income stream, and further demanded a reduction in their tax burden. And in many industries, Baby boomer leaders provide little opportunity to climb the ladder that the previous generation had offered to them. Even for many white collar workers, Baby boomer leaders have quite consciously pulled the ladder up so that the lowest rungs are ever harder to reach. For example, the collusion in the tech industry which kept wages of high skilled workers low.
The dominant economic principles for the last generation have shifted economic risks onto workers, shunted wealth to the few, while implementing a more regressive tax burden and minimizing public investment. How then is someone to enter the middle class?
This began to change in the 1980s with rise of the Baby boomer generation, and their sense of entitlement, borne of nothing. Those at the top demanded ever larger shares of the income stream, and further demanded a reduction in their tax burden. And in many industries, Baby boomer leaders provide little opportunity to climb the ladder that the previous generation had offered to them. Even for many white collar workers, Baby boomer leaders have quite consciously pulled the ladder up so that the lowest rungs are ever harder to reach. For example, the collusion in the tech industry which kept wages of high skilled workers low.
The dominant economic principles for the last generation have shifted economic risks onto workers, shunted wealth to the few, while implementing a more regressive tax burden and minimizing public investment. How then is someone to enter the middle class?
2
The middle classes have been devastated by two federal monetary policies designed to transfer wealth to the 1%: the Reagan tax rate cuts for the wealthy, and, during the past 6+ years, the transfer of trillions of tax dollars and lost interest on savings from the middle classes and seniors to Wall Street. While these policies are easy to fix, the "political challenge" is for politicians to act against their own self-interest.
49
Lets be clear, the political definition of middle class is a public relations term that means whatever a politician wants it to mean. Obama's proposal for a "middle class tax cut" gave a bigger tax reduction to people making $500,000 than people making $50,000, $8000 compared to $600.
What people tell pollsters has little to do with any considered opinion and often nothing to do with their personal experience. Instead people choose a cliche they have heard in the media. So fewer people now believe the cliche that the poor can get ahead.
What exactly is "income fluidity?" It sounds like a euphemism for "income instability." But its tough to make the argument that income instability is a "double edged sword." It is just a tautology that for someone to make less money, they have to have made more money and vice versa.
There are reasons the people our front are increasing their lead over everyone else. Our markets are largely built around creating monopolies that reduce competition and give control to market leaders. The result is that market leaders, in almost every profession, have enormous advantages that grow right along with them.
What people tell pollsters has little to do with any considered opinion and often nothing to do with their personal experience. Instead people choose a cliche they have heard in the media. So fewer people now believe the cliche that the poor can get ahead.
What exactly is "income fluidity?" It sounds like a euphemism for "income instability." But its tough to make the argument that income instability is a "double edged sword." It is just a tautology that for someone to make less money, they have to have made more money and vice versa.
There are reasons the people our front are increasing their lead over everyone else. Our markets are largely built around creating monopolies that reduce competition and give control to market leaders. The result is that market leaders, in almost every profession, have enormous advantages that grow right along with them.
19
I do not believe that the reason the rich are getting richer is that they are necessarily "market leaders in almost every profession" and have enormous advantages that grow right along with them. The reason that the rich are getting richer is that they know where to invest their money in areas that are tax exempt, such as tax free municipal bonds where the government would otherwise have to put money. Taking money away from the rich, as progressives would like to do will only put more burden on government tax revenues and will ultimately take money out of the hands of the middle class.
Ross, I agree with almost all your points, but feel compelled to point out that in virtually any tax system, whether flat or graduated, the people who get the biggest tax cuts are the ones that pay the most taxes, and those people, of course, are all the top wage earners.
Let's not dismiss the efficacy of tax cuts on that basis alone.
Rupe
Let's not dismiss the efficacy of tax cuts on that basis alone.
Rupe
"The reason that the rich are getting richer is that they know where to invest their money ..."
I don't think being rich makes you a better investor. But it certainly does give you investment opportunities not available to people with less money.
I
I don't think being rich makes you a better investor. But it certainly does give you investment opportunities not available to people with less money.
I
It's not like this happened out of nowhere.
Starting in the 80s, corporations began moving their operations overseas to save money, putting Americans out of work, and our own government gave them no penalty for this. Around the same time, we had Walmart and the like setting up business practices that meant mom & pop store could not compete. Then the rules that kept banks and stocks separate and local were undone, and union busting began in earnest, and then the sneaky housing mortgages came along… and tax cuts for the wealthiest were cut, depleting the resources we hold in common for common needs (army, roads, infrastructure, et al) - they say we are growing jobs, but it's all service and little trade..
The middle class was undone by policy, it wasn't accidental, it wasn't magic, it was prioritization of the needs of the most wealthy, and the needs of the corporate "citizen", over the actual citizens that keep this place running. And with Citizens United, corporations now have rights.. yes, we are living in a scenario right out of Theater of the Absurd heading straight to the dystopian nightmare of Mad Max. Oh, and the term "Climate Change" has been banned in 2 states.
Starting in the 80s, corporations began moving their operations overseas to save money, putting Americans out of work, and our own government gave them no penalty for this. Around the same time, we had Walmart and the like setting up business practices that meant mom & pop store could not compete. Then the rules that kept banks and stocks separate and local were undone, and union busting began in earnest, and then the sneaky housing mortgages came along… and tax cuts for the wealthiest were cut, depleting the resources we hold in common for common needs (army, roads, infrastructure, et al) - they say we are growing jobs, but it's all service and little trade..
The middle class was undone by policy, it wasn't accidental, it wasn't magic, it was prioritization of the needs of the most wealthy, and the needs of the corporate "citizen", over the actual citizens that keep this place running. And with Citizens United, corporations now have rights.. yes, we are living in a scenario right out of Theater of the Absurd heading straight to the dystopian nightmare of Mad Max. Oh, and the term "Climate Change" has been banned in 2 states.
342
We all know how we got here but maybe its time to stop thinking about whose going to be the next President 2 minutes after we elected the last one. And, maybe we should start thinking about how we build a new system for ourselves. Let Clinton, Bush and the rest of them go do whatever.
1
"sneaky housing mortgages" - oh, you mean the loans and terms that people willingly signed, probably without reading? They called them "liar loans" even when they were writing them. And guess who the liar was? Not the bank my friend, but the broker and person taking the cash... As long as we don't hold INDIVIDUALS (borrowers) accountable for their ACTIONS (promising to pay and then not paying) society will crumble. When a bank gets robbed, it isn't the banks fault. We all pay.
1
Aw, it wasn't the borrowers who changed the information on those loan applications so that the loans would close. Those were the originating banks that failed to be accountable, not the borrowers. Those banks had a lot invested in closing more and more loans regardless of the borrowers ' respective abilities to pay them back.
3
The article focuses on income/wealth and does not address mobility. Sure, there is some mobility between a lower middle class existence and the middle. Ascension from the middle to the upper requires education and advanced skills -- often out of reach to people in the lower classes due to the rising cost of higher education.
Ultra-wealth is pretty much out of the question unless you are the heir to a large fortune. It's no wonder that the Grand Old Plutocrats campaign against the "death tax." The oligarchs want to keep the deck stacked in their favor.
Overall, it ain't a pretty picture. Lack of upward mobility (opportunity) drives politics more than sheer lack of wealth or income -- or so it should.
Ultra-wealth is pretty much out of the question unless you are the heir to a large fortune. It's no wonder that the Grand Old Plutocrats campaign against the "death tax." The oligarchs want to keep the deck stacked in their favor.
Overall, it ain't a pretty picture. Lack of upward mobility (opportunity) drives politics more than sheer lack of wealth or income -- or so it should.
15
Debbie downer, NYT! Are not high's and low's part of life? Is it not how much you make, but how you live that will determine "middle class"? Rather than judging success by how you are doing versus your parents? Really? And what is behind it, anyway? Useless degrees from college, at least as far as employment is concerned, taxes, taxes, taxes, always on the other person. And not only meaningless degrees from college, but exorbitant costs for same, with the conversation revolving around taxpayers picking up the tab rather than cutting the costs for that education. Medical insurance, you say? Why do we not question the extraordinarily high costs for medical services? Housing? It seems that we buy houses only to make money, if the value goes down we foreclose and let the evil banks pick up the tab, the same evil banks that loaned us money in the first place. Weird, huh? All these eat into our salaries, along with taxes on everything, but we look instead to more government intervention, rather than personal responsibility.
11
I really, really hope this is satire.
1
There has never been an era when the middle class thought they were paid enough, had complete job security and believed that they would just keep getting pushed ever upward into the upper classes. (nor did many have the house, yard & in-ground pool as depicted in the photo). The saying "Keeping up with the Jones' " did not just appear in the past few decades.
My quite middle class parents in the 50's & 60's worried constantly about paying bills, education expenses, etc. (that was even with my father's government job). And the 70's brought such a terrible economy & disastrous stagflation that eroded everyone's income and sense of security. That feeling of insecurity was palpable to me as a young adult.
The only difference now is that abstractions like income inequality statistics (no one actually "experiences" income inequality) & constant reports about stagnating wages (who doesn't ever think they should be paid more) seem to give credence to the proposition that everyone's aspirations are being thwarted by outside forces, and that if only "someone would do something", the middle class would be OK (and "feel" fine).
That idea is as much of a fantasy as the "comfort & optimism" that pervaded the American middle class at a time that never existed,
My quite middle class parents in the 50's & 60's worried constantly about paying bills, education expenses, etc. (that was even with my father's government job). And the 70's brought such a terrible economy & disastrous stagflation that eroded everyone's income and sense of security. That feeling of insecurity was palpable to me as a young adult.
The only difference now is that abstractions like income inequality statistics (no one actually "experiences" income inequality) & constant reports about stagnating wages (who doesn't ever think they should be paid more) seem to give credence to the proposition that everyone's aspirations are being thwarted by outside forces, and that if only "someone would do something", the middle class would be OK (and "feel" fine).
That idea is as much of a fantasy as the "comfort & optimism" that pervaded the American middle class at a time that never existed,
27
People always worry. But you're just repeating Phil Gramm's "mental recession" argument.
My parents worried about those things, back in the '50s and '60s. They were from the Depression, and Dad was in construction and didn't always work. But he retired on two pensions plus social security. They put away money to send us to college and we didn't need a third of it.
Housing prices were low, work plentiful for most -- if you were white, at least. Wages were high enough as well, for one-income families to be common. The infrastructure improved every year.
Compare to now. Review in terms of politics in the last 30 years, including massive changes in taxation rates, financial systems, corporate governance, trade policy.
My parents worried about those things, back in the '50s and '60s. They were from the Depression, and Dad was in construction and didn't always work. But he retired on two pensions plus social security. They put away money to send us to college and we didn't need a third of it.
Housing prices were low, work plentiful for most -- if you were white, at least. Wages were high enough as well, for one-income families to be common. The infrastructure improved every year.
Compare to now. Review in terms of politics in the last 30 years, including massive changes in taxation rates, financial systems, corporate governance, trade policy.
1
And tv. And celebrity magazines. And far more sophisticated advertising which successfully convinces very ordinary people that they are entitled to and can afford mass market luxury like weekends in Vegas, Coach purses, and a new car every five years.
3
You said there was never a time when the middle class thought they were being paid enough. Well, guess what? There has never been a time in the history of mankind when the wealthy thought they were rich enough.
4
This article really articulates a sense that's been brewing in me for the past couple years -- that the promise I felt stretched out before me in childhood was retracted. In my mind, the promise said that if I went to college (I got a master's degree) and worked diligently (I have) I would be able to afford a decent (if modest) home, car, and the basics, plus save for my kids college and for family vacations. In reality, my house and car need repairs I can't afford, I'm still trying to pay off car repairs from two years ago, I have no savings for my kids college, no vacation plans. I don't have a smart phone, flat screen tv, or cable subscription. I'm astonished at the price of groceries. Even though my income is supposedly around median for my area, I have to be extremely careful to make ends meet. It's just not at all what I imagined...
168
But you choose to live in a very small town surrounded by national forests. Of course things cost more there. But it can't be all bad, can it?
I think it's helpful to put this phenomenon in context.
From 1945 through the 70s, America's prosperity was pretty much guaranteed, which is not to say it was unearned. With Russia and China out of the mix, and most of Europe still in recovery or bogged down in postcolonial conflicts around the globe, America's preeminence in int'l economics was assured.
Fast forward to today: China and Russia and Europe are all major competitors, and emerging markets with cheap labor forces are drawing off much of the work of the world all over the globe.
It's the world we wanted and it's the world we got. It comes with significant costs.
What we see today is, in part, the inevitable generational misunderstanding that follows from this. If you grew up in the 60s, your economic fate pretty much depended on how hard and how smart you worked. If you were poor, you had no one to blame but yourself.
Leaving aside whether this was ever true, it's not true now. The US has created a global economic system that regularly overwhelms the ability of individuals to determine their own economic fate. This was always true in the rest of the world, and is increasingly true in the US.
Our social policy must adjust to this fact. We need to develop better social safety nets and better policies to redistribute resources and opportunities to those in need. These days, their poverty very often is not their fault.
From 1945 through the 70s, America's prosperity was pretty much guaranteed, which is not to say it was unearned. With Russia and China out of the mix, and most of Europe still in recovery or bogged down in postcolonial conflicts around the globe, America's preeminence in int'l economics was assured.
Fast forward to today: China and Russia and Europe are all major competitors, and emerging markets with cheap labor forces are drawing off much of the work of the world all over the globe.
It's the world we wanted and it's the world we got. It comes with significant costs.
What we see today is, in part, the inevitable generational misunderstanding that follows from this. If you grew up in the 60s, your economic fate pretty much depended on how hard and how smart you worked. If you were poor, you had no one to blame but yourself.
Leaving aside whether this was ever true, it's not true now. The US has created a global economic system that regularly overwhelms the ability of individuals to determine their own economic fate. This was always true in the rest of the world, and is increasingly true in the US.
Our social policy must adjust to this fact. We need to develop better social safety nets and better policies to redistribute resources and opportunities to those in need. These days, their poverty very often is not their fault.
85
What is the factual basis for your comment, "The US has created a global economic system that regularly overwhelms the ability of individuals to determine their economic fate?" And, per your last sentence, why do you think people are no longer personally responsible?
As a person who grew up in the 60s as you describe, and who worked in international corporate doings, still interested, your analysis rings very true.
2
People tend to forget important things about their parents and their grandparents:
First - they saved
Second - they didn't spend all of their money on useless junk
Third - they made do with one of everything - TVs, cars...
Fourth - they avoided debt like the plague
It is amazing how much easier your life is when you think before you spend what you have not yet made.
First - they saved
Second - they didn't spend all of their money on useless junk
Third - they made do with one of everything - TVs, cars...
Fourth - they avoided debt like the plague
It is amazing how much easier your life is when you think before you spend what you have not yet made.
113
My dad started off quite poor, worked hard all his life and retired on a pension. I have nothing like that and will not have that-I will be much poorer than he is now and he is 90. I have struggled to send my son to college without loans. I am proud of that but fear that my son will never know a moment of peace and security in his life where he is not stressed out about money. The dream is that you sacrifice for your children so that they will have a better life. This is clearly not happening for most people. So please refrain for the old saws about not spending money... we're not.
16
Our parents, and maybe our grandparents, were in secure jobs for years. Not so today. Not at all.
14
Fifth - real estate was affordable
Sixth - job security and actual pensions
Seventh - no expectation of working longer hours than 9 to 5
Sixth - job security and actual pensions
Seventh - no expectation of working longer hours than 9 to 5
17
There's nothing wrong with capitalism that cuts costs and increases efficiency to win market share.
The problem is entrenched oligopolies calling themselves capitalists, while buying congresscritters and revolving door regulators to get better rent seeking arrangements with the government. Then they reduce pay and perks to employees and call that a profit center.
I like capitalism. But what I see nowadays are not capitalists, but plutocrats. They call themselves capitalists though. People believe them for some reason. They buy our government and buy policies that artificially degrade the middle class and artificially inflate their bank accounts. They increasingly maneuver so they don't have to pay taxes on that either.
Americans are uncomfortable with class warfare as a topic, because it feels like blaming others for your misery. The mythology of working hard and getting ahead is so ingrained. So many feel shame when they realize the game is increasingly rigged and they cannot get ahead, they can only tread water or slowly sink. While bought and paid for legislators openly promote laws that reward the rich at the expense of the middle class. Anger is the proper response, not shame.
The Gilded Age, with the child labor, no time off, and slave wage labor seems distant. But it also seems we are returning to it in certain ways.
Why can't we learn from history? Why the acceptance of legalized corruption in politics?
We need to fight again. We are being robbed.
The problem is entrenched oligopolies calling themselves capitalists, while buying congresscritters and revolving door regulators to get better rent seeking arrangements with the government. Then they reduce pay and perks to employees and call that a profit center.
I like capitalism. But what I see nowadays are not capitalists, but plutocrats. They call themselves capitalists though. People believe them for some reason. They buy our government and buy policies that artificially degrade the middle class and artificially inflate their bank accounts. They increasingly maneuver so they don't have to pay taxes on that either.
Americans are uncomfortable with class warfare as a topic, because it feels like blaming others for your misery. The mythology of working hard and getting ahead is so ingrained. So many feel shame when they realize the game is increasingly rigged and they cannot get ahead, they can only tread water or slowly sink. While bought and paid for legislators openly promote laws that reward the rich at the expense of the middle class. Anger is the proper response, not shame.
The Gilded Age, with the child labor, no time off, and slave wage labor seems distant. But it also seems we are returning to it in certain ways.
Why can't we learn from history? Why the acceptance of legalized corruption in politics?
We need to fight again. We are being robbed.
171
And then there are the people who seek to rebrand risk as "uncertainty" and deem it a Very Bad Thing. I call those fraidy-capitalists.
I was born into the middle-class, but now that I'm married, 30, and a working professional I'm not entirely sure where I fit in. I am highly educated along with my wife (both have Master's) and both have what many would consider a good job.
I've never felt secure in my work place, paid time off is almost non-existent, and frankly I don't think I'll ever be able to afford owning a home. We both work very hard but feel there's a huge gap between what we bring in, and what's flying out the door with rent and cost of living. Retirement? I just hope I'll be able to send my all my future children to college without totally crippling them with student loans that will trail them well into adulthood.
I've never felt secure in my work place, paid time off is almost non-existent, and frankly I don't think I'll ever be able to afford owning a home. We both work very hard but feel there's a huge gap between what we bring in, and what's flying out the door with rent and cost of living. Retirement? I just hope I'll be able to send my all my future children to college without totally crippling them with student loans that will trail them well into adulthood.
282
"...a huge gap between what we bring in (i.e net income) and what's flying out the door with rent and the cost of living (i.e. household expenses)."
If there's a huge gap, doesn't it imply that your net income exceeds your household expenses?
If there is no such gap and your net income barely covers you expenses, I would humbly suggest that you review your expenses because many people are managing and without the incomes that two masters' degrees generate.
If there's a huge gap, doesn't it imply that your net income exceeds your household expenses?
If there is no such gap and your net income barely covers you expenses, I would humbly suggest that you review your expenses because many people are managing and without the incomes that two masters' degrees generate.
Save now before the children come & invest well. Live in a cheaper area of Brooklyn with a longer subway ride to work. Don't have a car in Brooklyn.
I did all those 50 to 25 years ago; paid child support and for kids college.
Convince your relatives & friends outside NYC to vote for the more liberal candidate in the 2016 elections.
I did all those 50 to 25 years ago; paid child support and for kids college.
Convince your relatives & friends outside NYC to vote for the more liberal candidate in the 2016 elections.
Wrighter--you appear to suffer from a common ailment of middle class america. It's true there is less job security and hours can be long but no need for money to "fly out the door". You are no doubt overpaying for rent and everything else. You need to spend some time in a poor country to better understand the possibilities for lowering your expenses. If you have a good job in America you are part of the global 0.1 % and there's no excuse for feeling insecure--even with high cost of living. Remember, median income in NYC is only about 40k. Remember the largest families are among the poorest people. What you are expecting from our society and the economy is a fantasy and you have been deluded by the affluence around you.
Most Americans, even those few with adequate savings and good jobs, are just one major illness away from financial ruin due to the lack of affordable, decent health care and any significant social and economic safety net.
No one can feel secure under those circumstances.
No one can feel secure under those circumstances.
106
Interesting article. I wonder if Patricia Cohen could clarify whether the statement "as many as 30 percent reached the equivalent of $200,000 in 2009 dollars, or roughly the top 4 percent" pertains to EARNED income only, or to total income from ANY source. If it is strictly income from employment then I'm at a loss to understand how nearly one third of Americans make that much in any one year during their lifetimes.
I think the statement refers to total income, which is much more understandable since the total income figure is likely reached when people move they sell their homes and pay capital gains on the appreciation on the value of their home.
How many people ever make $200,000 or more in a single year as wages from their employer, or from self employment? Probably far fewer than 30%+. So the "Insecurity" "Affluence" gap is much wider than it appears at first blush.
I think the statement refers to total income, which is much more understandable since the total income figure is likely reached when people move they sell their homes and pay capital gains on the appreciation on the value of their home.
How many people ever make $200,000 or more in a single year as wages from their employer, or from self employment? Probably far fewer than 30%+. So the "Insecurity" "Affluence" gap is much wider than it appears at first blush.
24
Being somewhat experienced in these matters, I would like to point out the case where an employer lets you go after many years on the job, and pays you a year or 18 months of severance pay in a lump sum.
Just watch out for AMT when that happens....
Just watch out for AMT when that happens....
Robert Frank's book, "Falling Behind: How Rising Inequality Harms the Middle Class" is an excellent description of how inequality has increased since the 1950s.
30
I've been a worker bee for over 30 years and am frugal. I own my own home free and clear, due to strict money management and being handy. I also have a six figure income (just barely), but, my salary has not gone up in five years and I lost my job twice in 2013. I do not feel secure, even knowing I own my own place. In my family, the women either die in their 50s from some catastrophic medical condition or they die in their late 80s after a decade in a "home".
I don't take holidays, buy pretty things and regularly repair my furniture and clothing and appliances a la Great Depression (thanks Mom and Dad for the life skills!) and hoard money in a lot of different places because I just don't feel secure enough to just enjoy it. I never know when the rug will get yanked out from under me (stock crash, Obamacare repeal, housing value crash, an earthquake) and I'm a decade away from Medicare.
It's probably me being neurotic, but I've known middle class people who've fallen through the bottom of society on the turn of a dime and died because they could not find a home and/or healthcare.
I don't take holidays, buy pretty things and regularly repair my furniture and clothing and appliances a la Great Depression (thanks Mom and Dad for the life skills!) and hoard money in a lot of different places because I just don't feel secure enough to just enjoy it. I never know when the rug will get yanked out from under me (stock crash, Obamacare repeal, housing value crash, an earthquake) and I'm a decade away from Medicare.
It's probably me being neurotic, but I've known middle class people who've fallen through the bottom of society on the turn of a dime and died because they could not find a home and/or healthcare.
490
I am an older version of Cat. Fortunately, I started retirement saving early in my working career; the great run up in stocks & other investments from 1982 until now has insured me of a comfortable retirement with assets for my children & grandchildren. My scares were the 1987 crash and 2007-09 depression like crash, only 55% loss rather than 90%. The 1987 crash was short and thanks to Ben Bernaike at the Fed, my assets came back. Since our 'great Recession' tracks the 'great Depression' 4 generations later, I am concerned about a potential crash in 2017 if the wrong political party is elected to the Presidency & continues to control Congress.
Just don't sell if that happens, as the great investor of our time, Warren Buffett would say.
Just don't sell if that happens, as the great investor of our time, Warren Buffett would say.
I hope the billionaire class (the .00001%) enjoys the squalor, hopelessness and devastation that their psychopathic greed has brought upon a once great country - It never had to be this way, this has been the plan for the last 30 years and the greed junkies have won.
347
Yeah, Zuckerberg (Facebook), Bezos (Amazon), Larry and Sergey (Google), Bill Gates (MSFT), Mike Bloomberg (Media and Mayor), Knight (Nike Sneakers), Mars family (candy) the Waltons (Walmart, most affordable place for poor to shop) never did nothing for nobody. It's all their fault. Certainly not ours!
2
What makes you think that they even remotely care.
Unite. Rise up. Face them down at their high-rises in New York and where their minions work in Congress. We did it before in the age of the robber barons in this country. We can do it now.
1
I'm a physician who makes about $250k a year now in my 40s. I'm doing well but I don't feel rich. I have $250k of medical school debt accruing at a criminal 6.8% of federal student loan interest (while the federal discount rate charged to banks is 0.25%). I spent my 20s and 30s working at residency making about minimum wage based on the hours we were putting in (over 80 hrs a week). By the time I got my first "doctor paycheck," most of my classmates who pursued other careers had long bought homes and were saving for retirement and their kid's college. My current income also means I have to pay full price on my kid's college tuitions (no need-based aid for me), and I don't have that many years to save for their college funds. The focus only on incomes as a determinant of middle class versus rich is misguided. Many of us who are making a decent income sacrificed a good third to half of our working lives to achieve that. I know it may be blasphemy to some of the posters here, but despite making $250k, I am middle class and live a very middle class existence.
598
As an Aussie might say, good on' ya mate. You should be proud of what you have accomplished. And good luck!
6
Your right I do think its blasphemy! How about I am a Ph.D. chemist working as a lecturer making $45k with no raise in sight (the only increases I get are in numbers of students I teach 200+ this semester). The number of chemists I know with Ph.D.'s and working as adjuncts or lecturers in a similar financial situation is high and growing. I don't think a medical degree is any better than a Ph.D. in chemistry in fact I think it is more difficult to get the doctorate (5-6yrs). There is absolutely no guarantee of a reasonable paycheck after the doctorate or post-doc (another 2-4yrs). While I have no debt from graduate school, earning 250k is about as likely as becoming a billionaire. So I am sick to death of hearing doctors complaining about their difficult financial situations when this is the only job I can think of that has a virtual guarantee of a 6 figure salary and zero unemployment; it doesn't get any more stable.
36
I completely agree. As someone who spent her 20s and 30s getting a PhD and doing poorly paid post-docs I understand. People used to see getting a MD as a path to economic security if not wealth. We are all paying for healthcare but the people who provide heath care are not seeing any growth at all in their incomes. I know of many physicians who leave medicine just so they can pay off their loans. There is so much wrong with our economic system that it is hard to know what to say. My first suggestion is to tax the extremely rich to provide free public university tuition and free medical tuition.
16
The "Economic Roller Coaster" chart is not very informative. By the time people have turned 60, at some point they drew unemployment? So what? That is a meaning less statistic. It would be more informative to see how 60 year olds fair in terms of assets. How much debt do they have? Do they own a home? How would these numbers compare with the same data from 1975 or 1985? The fact that some people temporarily drew unemployment or made "poverty level" income for a year is not relevant to the question of being middle class. Life is not and has never been completely free of challenges.
6
The figure "30% of people will spend at least 1 year earning $200,000 by the time they reach 60" refers to households, not individuals.
9
Thank Ronald Reagan for destroying the middle class
334
And thank FDR for the safety net that the Republicans are doing their best to destroy once and for all.
25
Ronald Reagan was not responsible. He was an aging puppet, whose strings were pulled by those who have manipulated the strings with much greater efficiency ever since. I was about to say finesse, but there is only brutal power in politics today. Power used to be couched in softer terms than what we see from the Koch brothers, et. al. today. It is all so blindingly obvious.
While in office Mr. Reagan exhibited unmistakable signs of dementia, and he wasn't a smart person to begin with. His pronouncements in that smooth well-honed actor's voice were taken as gospel by those who have voted for his party ever since.
He was a puppet but he has become a scapegoat. The folks to blame are not the Koch brothers, et. al., the fault lies with those who drank the Kool Aid. Why they did drink it is a much larger question.
Americans still have the right to vote, as we in Canada still do. It might be considered a charade, but it is up to voters to make sure it is not, while we still can. I think the time is drawing very short.
While in office Mr. Reagan exhibited unmistakable signs of dementia, and he wasn't a smart person to begin with. His pronouncements in that smooth well-honed actor's voice were taken as gospel by those who have voted for his party ever since.
He was a puppet but he has become a scapegoat. The folks to blame are not the Koch brothers, et. al., the fault lies with those who drank the Kool Aid. Why they did drink it is a much larger question.
Americans still have the right to vote, as we in Canada still do. It might be considered a charade, but it is up to voters to make sure it is not, while we still can. I think the time is drawing very short.
2
Too simplistic. You are giving presidents more credit than they deserve. Maybe you should say the philosophy of Ronald Regan but not the man. Remember, when hands changed from GWB to Obama, two presidents many would say are opposites, most of the policies stayed put.
People are just realizing this now in 2015? The GOP has been gutting the middle class since Reagan and the 80s. Yet middle- (and lower-) income people still vote for them, against their own best interests. What's the matter with Kansas, indeed.
454
"The GOP has been gutting the middle class since Reagan and the 80s."
Haven't the Democrats been in control of the presidency for 16 out of the last 24 years? And haven't the Democrats controlled congress for significant parts of that time, including during the Reagan era? How does the GOP get all this power to "gut the middle class" over a 30 year period?
Haven't the Democrats been in control of the presidency for 16 out of the last 24 years? And haven't the Democrats controlled congress for significant parts of that time, including during the Reagan era? How does the GOP get all this power to "gut the middle class" over a 30 year period?
22
Yes Dave, Democrats have held the White House for those years, as you point out, but overall the GOP agenda (in the public and private sectors) has been ascendant since the 80s: undo as much of the Great Society (e.g. Social Security) as possible, weaken organized labor, privatize public functions, get rid of pensions in favor of 401s. And yes, some Democrats in Congress have done their part to further this agenda.
Additionally, the economy tends to do better under Democratic presidents. Most recently, we had more prosperity under Bill Clinton, but we then put Geo. W. Bush in office for two terms, and we can see how that turned out.
http://www.voxeu.org/article/us-economy-performs-better-under-democratic...
http://www.forbes.com/sites/adamhartung/2012/10/10/want-a-better-economy...
Additionally, the economy tends to do better under Democratic presidents. Most recently, we had more prosperity under Bill Clinton, but we then put Geo. W. Bush in office for two terms, and we can see how that turned out.
http://www.voxeu.org/article/us-economy-performs-better-under-democratic...
http://www.forbes.com/sites/adamhartung/2012/10/10/want-a-better-economy...
12
Come on. But you can't put all of this at the feet of the Radial Republicans. Remember. It was Clinton who passed Nafta (which outsourced jobs and decimated Mexico's economy and brought a flood of undocumented immigrants into the country -- all of which helped to deflate wages).
He also lowered the capital gains (income from lounging around the pool) tax rate from 28% to 20%, raised the estate tax exemption from $600,000 to $1 million, signed the Gramm–Leach–Bliley Act (which repealed part of Glass-Steagall, the act that would have protected us from the economic meltdown) and the Commodity Futures Modernization Act (which gave us those swell economy melting derivatives), signed the Small Business Job Protection Act (which partially led to the Enron scandal), AND helped to shred the social safety net by implementing Personal Responsibility and Work Opportunity Reconciliation Act (aka "Welfare Reform").
And under Obama, the "top 1 percent took more than one-fifth of the income earned by Americans" during the economy "recovery". http://economix.blogs.nytimes.com/2013/09/10/the-rich-get-richer-through...
Not to mention, he's joining with Republicans to push through MORE heinous trade bills: http://www.nytimes.com/2015/03/26/business/trans-pacific-partnership-see...
So, while, yes, the Republicans deserve scorn for their actions, we need to recognize Democratic actions have been corrosive to the middle class, too!
He also lowered the capital gains (income from lounging around the pool) tax rate from 28% to 20%, raised the estate tax exemption from $600,000 to $1 million, signed the Gramm–Leach–Bliley Act (which repealed part of Glass-Steagall, the act that would have protected us from the economic meltdown) and the Commodity Futures Modernization Act (which gave us those swell economy melting derivatives), signed the Small Business Job Protection Act (which partially led to the Enron scandal), AND helped to shred the social safety net by implementing Personal Responsibility and Work Opportunity Reconciliation Act (aka "Welfare Reform").
And under Obama, the "top 1 percent took more than one-fifth of the income earned by Americans" during the economy "recovery". http://economix.blogs.nytimes.com/2013/09/10/the-rich-get-richer-through...
Not to mention, he's joining with Republicans to push through MORE heinous trade bills: http://www.nytimes.com/2015/03/26/business/trans-pacific-partnership-see...
So, while, yes, the Republicans deserve scorn for their actions, we need to recognize Democratic actions have been corrosive to the middle class, too!
14
One interesting aspect of the concern raised about the"'disappearing middle class", however it is defined economically, ( using roughly 50k-150k) is how that class has participated in its own decline. They should be anxious.
The GOP has fought virtually every effort to provide any social supports for working Americans be it the minimum wage, unemployment insurance , health care or jobs.The middle class, for their part, have in large measure voted For
those who Undermine the middle class.
As a "middle class" American most concerned about the cost of healthcare, my focus will be on the republican assault on Medicare as well as Social Security after the 2016 election.
Whenever THEY want to privatize a program, always read it as "we wish to transfer your benefit into our coffers".
Economic insecurity has become a way of life during the past 30 years in the US. It doesn't have to be that way, but the so called called middle class has to take responsibility for their economic lives when they vote. Republicans have been abundantly clear as to their intentions: they do not want a social safety net involving healthcare or Social Security, to say nothing of any other social supports.
The Dems as we know them are no panacea, but at least they say things in support of the middle class and when given an opportunity actually deliver programs to support them. There would be no safety net whatsoever without them.
The GOP has fought virtually every effort to provide any social supports for working Americans be it the minimum wage, unemployment insurance , health care or jobs.The middle class, for their part, have in large measure voted For
those who Undermine the middle class.
As a "middle class" American most concerned about the cost of healthcare, my focus will be on the republican assault on Medicare as well as Social Security after the 2016 election.
Whenever THEY want to privatize a program, always read it as "we wish to transfer your benefit into our coffers".
Economic insecurity has become a way of life during the past 30 years in the US. It doesn't have to be that way, but the so called called middle class has to take responsibility for their economic lives when they vote. Republicans have been abundantly clear as to their intentions: they do not want a social safety net involving healthcare or Social Security, to say nothing of any other social supports.
The Dems as we know them are no panacea, but at least they say things in support of the middle class and when given an opportunity actually deliver programs to support them. There would be no safety net whatsoever without them.
238
Indeed, the middle class shares the blame. Many were distracted with God, guns, gays and abortion and they failed to pay attention, or learn about, GOP economic policies.
14
Besides worrying if you are going to get "your" medicare and social security, we might worry about the massive debt facing the US government. How are we going to pay for it?
http://www.nytimes.com/2014/08/01/opinion/laurence-kotlikoff-on-fiscal-g...
http://www.nytimes.com/2014/08/01/opinion/laurence-kotlikoff-on-fiscal-g...
Criticize them all you want, but please quit calling them a Grand Old Party, the way you did just now.
Priebus gets a good chuckle out of comments like these. They tell him the brand is in good shape.
Enjoy your GOP!
Priebus gets a good chuckle out of comments like these. They tell him the brand is in good shape.
Enjoy your GOP!
There is an obvious flaw in comparing the spectrum of household incomes now to that of previous generations. A greater share of adults are choosing to live as singles now, increasing the ratio of households to the total population. A larger share of households are flirting with poverty level incomes partly because of 1) choice. Young singles are waiting to cohabit and 2) longer life spans. Older widowed people are more likely to live alone than move in with their adult children (although many of these have low-fixed incomes they may actually have a comfortable level of wealth, e.g. a paid off home).
My 85 year-old mom is doing just fine on a poverty level income with a paid off Buick, nice furnishings, and a great apartment and no public assistance other than Medicare.
My 85 year-old mom is doing just fine on a poverty level income with a paid off Buick, nice furnishings, and a great apartment and no public assistance other than Medicare.
13
There is some truth to that.
Having spent most of my life in the Rust Belt, though, I would point out that many parts of the country have a big gender discrepancy in employment rates. Sectors that employed large numbers of men in past years (e.g., manufacturing) have suffered large declines, while predominantly female sectors (e.g., education, health care, "pink collar" service jobs, etc.) have held steady or increased.
The result of that is that, in some parts of the US, pairing up is not necessarily going to improve a woman's financial prospects or raise her household income significantly. Hence more women living alone, etc. I see quite a bit of that here in upstate New York, where it's often women who have the steady jobs with health insurance and so on.
Having spent most of my life in the Rust Belt, though, I would point out that many parts of the country have a big gender discrepancy in employment rates. Sectors that employed large numbers of men in past years (e.g., manufacturing) have suffered large declines, while predominantly female sectors (e.g., education, health care, "pink collar" service jobs, etc.) have held steady or increased.
The result of that is that, in some parts of the US, pairing up is not necessarily going to improve a woman's financial prospects or raise her household income significantly. Hence more women living alone, etc. I see quite a bit of that here in upstate New York, where it's often women who have the steady jobs with health insurance and so on.
1
Unaddressed in the article was the insecurity of your job. Hardly anyone works at the same place for 20+ years anymore. You are told that you will have 5 jobs in your life, possibly quite different jobs in different industries. That has a bit of anxiety tied to it.
185
That's the crux of it.
My father has worked at the same company for 37 years (though he's been fully expecting to get laid off every year since he started, given that the company is notorious for that-- he's been very lucky).
I'm 34, and have worked for at least seven different employers since I completed my education. (Often working as a temp or contract employee, with no health insurance or other benefits). I've been laid off once, and have been nervous about rounds of planned layoffs and reorganizations on several occasions.
I don't know anyone my age who's planning on working for the same employer over their entire careers. Even if we wanted to, it's just not realistic these days.
My father has worked at the same company for 37 years (though he's been fully expecting to get laid off every year since he started, given that the company is notorious for that-- he's been very lucky).
I'm 34, and have worked for at least seven different employers since I completed my education. (Often working as a temp or contract employee, with no health insurance or other benefits). I've been laid off once, and have been nervous about rounds of planned layoffs and reorganizations on several occasions.
I don't know anyone my age who's planning on working for the same employer over their entire careers. Even if we wanted to, it's just not realistic these days.
9
There was a fascinating documentary on PBS called "Two American Families," that followed two middle class families in Wisconsin over a 20 year period starting in the early 1990s. One family was black, the other white and at one point both were secure with good paying jobs. The host visited each family on an annual basis to see how there were doing. Each family was striving for the middle class "ideal" - home ownership, raising a family, stable employment and to be financially secure. The documentary showed each family's triumphs and challenges over that time and the viewer could see how many of the aspects listed in this article affected each family.
15
The statement resonates with me: "many Americans viewed themselves as struggling was that their real incomes had not advanced significantly beyond their parents’ even when they reached higher educational levels, while those who matched their parents’ achievements were actually worse off"
My husband and I are both professors, as were my parents. I have less disposable income than my parents did. My income has not kept up with inflation. Based on some measures we might be considered "affluent" but weI feel poorer than we did growing up. Every year we go with out a pay raise is yet another year where our real income goes down. Over the last 8 years with no pay raises we have seen "prices" go up by more than 10%. We both have PhDs. We do not feel comfortable nor do we have any optimism about our economic future. It is so sad to realize that at middle age in our professions it is all down hill from here. What does it say when professors are thinking of getting part-time jobs to pay tuition costs for their kids (no we do not get a discount!). I have more in common with the many at the very bottom of the income scale than the 0.1% who see their real income go up exponentially every year.
My husband and I are both professors, as were my parents. I have less disposable income than my parents did. My income has not kept up with inflation. Based on some measures we might be considered "affluent" but weI feel poorer than we did growing up. Every year we go with out a pay raise is yet another year where our real income goes down. Over the last 8 years with no pay raises we have seen "prices" go up by more than 10%. We both have PhDs. We do not feel comfortable nor do we have any optimism about our economic future. It is so sad to realize that at middle age in our professions it is all down hill from here. What does it say when professors are thinking of getting part-time jobs to pay tuition costs for their kids (no we do not get a discount!). I have more in common with the many at the very bottom of the income scale than the 0.1% who see their real income go up exponentially every year.
422
"Over the last 8 years with no pay raises we have seen "prices" go up by more than 10%."
But Janet Yellen and Ben Bernake have been assuring us there is no inflation.
But Janet Yellen and Ben Bernake have been assuring us there is no inflation.
13
That's not inflation. It's a rise in the costs of goods and services that real wages are keeping pace with.
5
And you have things that your parents would have had a difficult time of imagining. You have a phone that is very small, has internet and does many things that in the past required many objects. That computer you are using is like a mainframe or better in your parent's day. You have air conditioning I bet and your parents might not have had.
5
Most definitely. Our household earnings last year bumped us out of Obamacare. We are struggling to cover housing (rental), healthcare, and paying down our credit cards (racked up during periods of recession unemployment), taxes, and school loans. Forget about investing in 401K. My parents each worked 30 years and successfully invested in 401K and pensions. I am anxious that we won't have adequate healthcare and housing in our retirement, much less anything else.
39
Well, as an early baby-boomer, I guess I was brought up in a pretty "middle class" family, though there was never a pool like that one in the photo. I never noticed the lack of anything, really, though I must admit that my expectations were probably not very high. We had Christmas and I was never unhappy about that, and I didn't notice that we never owned a new car...until we got one (a real lemon!) when I was 12. Had three meals a day and ate lots of meatloaf, beef stew, Wheaties, and PB&J. Maybe my horizons were limited, but I never really felt the need for that much "stuff."
Maybe it is about expectations and level of satisfaction. Of finding "enough" in a way that it is achievable. I still like PB&J and my car is ten years old.
Maybe it is about expectations and level of satisfaction. Of finding "enough" in a way that it is achievable. I still like PB&J and my car is ten years old.
34
It seems to me articles like this that address "middle-class satisfaction" should focus more on assets than on income. If my annual income is $250,000 and I am $250,000 in debt, I'm going to feel less satisfaction and more anxiety than someone with an income of $100,000 and no debt. Over the years individual debt has exploded. That surely influences one's definition of middle class. Most of us don't know the parameters of "middle class", so where we place ourselves really has little meaning.
66
Not only satisfaction, but real wealth. Someone that makes $250k but is massively in debt is not affluent, even if they appear to be from the outside. They are living in a house of cards that will soon collapse. That is why a better measurement of middle class would be accumulated assets.
5
I have to agree with this. My husband and I just finished going through the college financial aid process; they recognize income and real estate values and do not consider other debts. We have a backlog of debt due to years of out-of-pocket therapies for our daughter (on the autistic spectrum) which insurances would not cover; we had a flood that required ripping out our kitchen to the studs, and our homeowner's insurance turned out to be pathetically inadequate; I have leukemia and am pursuing alternative medical treatment as all my physician (at a very well regarded cancer center) will do is "watch and wait" until I need chemotherapy; like a previous poster, we have had a flat income for nearly a decade even as insurance and utilities and food costs have soared. Yet we are expected to be able to afford to pay NEARLY HALF of our total take-home income for our daughter's college education. So basically we don't qualify for anything but the most minimal financial aid, because our decades of debt, undertaken primarily to help our daughter to full independence, do not "count" -- for college admissions or for articles like this one.
12
The economy grew, and so did inequality. The people at the top grew richer and richer, and didn't share. They didn't want to, they rarely do, and adopted an ideology to justify it. They've sold it to the rest of us.
Meanwhile, middle Americans, even those with some assets, live in a toxic meadow of smiling menaces -- the investments that could go south (in place of the guaranteed pensions of old), the medical care or long-term care that could bankrupt you even now, for your or a loved one, the possibility for older workers of losing a job and never getting another one above menial level.
Once upon a time the willingness to work hard was all it took to get by. Now you need friends, and inside information, and tricks, and luck. And it is very easy to run out of any of them.
Meanwhile, middle Americans, even those with some assets, live in a toxic meadow of smiling menaces -- the investments that could go south (in place of the guaranteed pensions of old), the medical care or long-term care that could bankrupt you even now, for your or a loved one, the possibility for older workers of losing a job and never getting another one above menial level.
Once upon a time the willingness to work hard was all it took to get by. Now you need friends, and inside information, and tricks, and luck. And it is very easy to run out of any of them.
102
Exactly. You can do all the right things and still get locked out.
2
Ours has become much more of a non-industrial society/economy, tilting heavily towards a full-service economy. Many of the former "blue collar" manufacturing/industrial type jobs have been eliminated from our shores over the past 35 years. While it has resulted in much less expensive consumer type items such as TVs, computers, electronics, etc., these items aren't everyday staples/necessities that have escalated greatly in price. For example, as stated in the article, college tuition, health care, insurance rates (auto, home, health) have all appreciated far beyond the govt claimed level of inflation. Yes, I can buy a new TV every 7 years or so and pay less for a bigger screen, but my health care premiums have quadrupled over the past 10 years, college tuition is ten times what it was 35 years ago, etc.,etc.
The Federal Reserve is living in the past insisting there is no inflation. Has Ms. Yellen been is supermarket lately? The cost of a pound of haddock for example is up 40% over the past year. And on and on it goes with other everyday healthy-type food item.
And consumer service in which there is no outside competition, or which has Washington in its grasp through the machinations of lobbyists, has become very expensive, from health care to tuition to legal services, etc. Doesn't Ms. Yellen comprehend that close to $1 trillion in student debt will cripple these future consumers? I don't think so.
That is why the so-called middle class has fallen so far.
The Federal Reserve is living in the past insisting there is no inflation. Has Ms. Yellen been is supermarket lately? The cost of a pound of haddock for example is up 40% over the past year. And on and on it goes with other everyday healthy-type food item.
And consumer service in which there is no outside competition, or which has Washington in its grasp through the machinations of lobbyists, has become very expensive, from health care to tuition to legal services, etc. Doesn't Ms. Yellen comprehend that close to $1 trillion in student debt will cripple these future consumers? I don't think so.
That is why the so-called middle class has fallen so far.
20
GOP engineered the recalculated CPI to aid business and provide the illusion of low inflation.
1
There is no "middle" in America today. It's been erased.
No middle class, no middle management, no middle of the road politics, no middle age, no middle ground - as we once defined these terms.
Only extremes, brought to you by your Oligarchy.
Steve S
No middle class, no middle management, no middle of the road politics, no middle age, no middle ground - as we once defined these terms.
Only extremes, brought to you by your Oligarchy.
Steve S
363
I listened to Rand Paul yesterday say that it was time "We take back America". I wondered who and what he was talking about. He and his cronies already own it.
7
Steve--Paul and cronies want to take America back to the 1890s when there essentially was no strong middle class or government protections--and everyone was at the mercy of the wealthy. They don't quite own America yet, but they're working on it...
11
I am a married working full-time professional with a Master's degree (my wife is as well) and a respectable job. We are in our early 30's living in Brooklyn and are responsible with money.
We frankly are under constant duress about planning for our future together, starting a family, and how we'll be able to provide an acceptable lifestyle both for ourselves and our future children. We both work very hard but find it increasingly difficult to ignore the perceived disparity between what we're putting in and what we get in return. I'm not sure what level of middle-class this puts us in, but it's never felt secure and the gap between us and some of our Wall Street friends who work 35+ hour weeks seems to get wider and wider.
We frankly are under constant duress about planning for our future together, starting a family, and how we'll be able to provide an acceptable lifestyle both for ourselves and our future children. We both work very hard but find it increasingly difficult to ignore the perceived disparity between what we're putting in and what we get in return. I'm not sure what level of middle-class this puts us in, but it's never felt secure and the gap between us and some of our Wall Street friends who work 35+ hour weeks seems to get wider and wider.
65
Let me guess your biggest expense is not food or shelter but taxes?
Though some of the liberals blame Larry Summers for all the financial crisis and the Great Recession thereafter, he often mentions, " If we were in the same income distribution of 1979, our current income would be app. $1 trillion less for the top 1% and $1 trillion more for the bottom 80%." This shift of income is huge and very serious. And, yet, I don't hear any dangerous anger that may change our society fundamentally, I hear only sighs, laments or rants. From now on, our economy will enter into much harder environment of secular stagnation unless the combined middle classes act politically for terminating the rule of the rich in this country. Decline of growth rates in productivity and working-age population will continue. Hysteresis impact of the austerity by the Republicans will continue to lower growth potential of our economy. Supposedly marvelous internet technology or social media will not enhance our productivity. Asia and other developing area will take more manufacturing or call center jobs away from us. I think liberals had better listen what Larry Summers is warning!
15
How do you know that the income would not be $1 trillion less in the top 1% and $1 trillion more in the 80-99%? That would be the most likely effect.
Nothing will change in the US until income inequality is fixed. What that means is the upper 2-3 % should pay more in taxes to fix our infrastructure, education and feed the poor. And the 2 trillion that US corporations are hiding offshore bring it home, i.e. to the USA.
I am not optimistic. Just look at our do nothing Congress. It is a very sad state, yet the people referred to in this article will continue to keep them in office. Pathetic.
I am not optimistic. Just look at our do nothing Congress. It is a very sad state, yet the people referred to in this article will continue to keep them in office. Pathetic.
173
They are not 'hiding' the 2 trillion. Most of it, in fact, is invested in the stocks of US corporations. The stock certificates may be overseas, but the actual wealth those certificates represent is right here already.
1
401Ks replaced pensions, and we were told by corporate America and many in government that this was a good thing. It's good that you have more "skin in the game," they said. But then workers who never learned how to manage risk suddenly had to manage risk, and were pushed into the financial lake without being taught how to swim. Now we have a looming retirement crisis. Their game, our skin.
Layoffs, outsourcing, and offshoring replaced job security, and we were told that this was a good thing. All part of the "creative destruction" process, they said, which would provide new and better jobs in the long run. Most of us are still waiting for end of the long run, as our incomes stagnate and the economy stagnates as a result. Keynes was right. In the long run, we're dead and nothing more.
Financial markets were deregulated, and we were told that this was a good thing. After all, they said, capital will be freed up, stimulating investment and creating good jobs. The good jobs only showed up on Wall St. The rest of the country had to pay for the bailout.
Time to seriously question and challenge the conventional wisdom preached by many in government, corporate America, and the business media over the last 30-40 years.
Layoffs, outsourcing, and offshoring replaced job security, and we were told that this was a good thing. All part of the "creative destruction" process, they said, which would provide new and better jobs in the long run. Most of us are still waiting for end of the long run, as our incomes stagnate and the economy stagnates as a result. Keynes was right. In the long run, we're dead and nothing more.
Financial markets were deregulated, and we were told that this was a good thing. After all, they said, capital will be freed up, stimulating investment and creating good jobs. The good jobs only showed up on Wall St. The rest of the country had to pay for the bailout.
Time to seriously question and challenge the conventional wisdom preached by many in government, corporate America, and the business media over the last 30-40 years.
333
Thanks for pointing to the loss of the pension system here. What a joke that was: This is Wall Street Joe Public; go invest your own retirement money like the well-connected financial whiz you aren't. Now the rest of what remains of the unions that protected the middle class are being dismantled---fast. What a sorry legacy to leave future generations. How righteous their revolution will be!
56
All true but global corporations and their influence and their dollars are pulling (many) of the political strings.
2
Although some amount of layoffs, offshoring etc. were necessary to keep America competitive, i do like your point on 401ks and deregulation. More could have been done to look out for the little guy while keeping the US a global power. It's a delicate balance however. All too easy to kill the golden goose in the name of equality and fairness. All to easy to empower governments so much that freedom is curtailed without commensurate benefits.
Stress and anxiety are often choices made by those afflicted with them. They are self-inflicted reactions to the difference between how things are versus how we want them to be. Rationally, no one has any realistic expectation to be able to control the variables in life. And yet, we are in thrall to an artificial hierarchy of wealth, power and youth. If we stop and consider, we may be eternally grateful for the blessings we have instead of the ones we don't.
6
No jeff; not really.
11
I am comfortably in the middle class as were my parents. In conversations with my friends who have children who have now entered the job market after college, we do not see a path that generation will have to being part of the middle class; at least as we know it. The biggest problem is not getting a job, but wage stagnation along with college loan payments and exorbitant rents.
In this paper, I have seen glowing articles about the sharing economy, but that is really just about piecing together as many jobs as you can so you can pay your bills. Forget about benefits, paid time off or any hope of owing your own home. Just like global warming is reshaping our environment, income inequality is going to eventually reshape our country. In both cases, things are going to get worse before there is any hope of improvement.
In this paper, I have seen glowing articles about the sharing economy, but that is really just about piecing together as many jobs as you can so you can pay your bills. Forget about benefits, paid time off or any hope of owing your own home. Just like global warming is reshaping our environment, income inequality is going to eventually reshape our country. In both cases, things are going to get worse before there is any hope of improvement.
67
The zero-value of the liberal arts degree in today's economy (outside of uncertain career paths in education) surely marked my own professional trajectory. I listened to the foolish advice from various counselors at university who rhapsodized upon the 'appreciation' employers displays towards folks who are so 'well-rounded' and 'cultured', supposed values only of use to a hypothetical player on the game show 'Jeopardy!' Despite my successful education, my resignation with survival wages depletes any residual feeling of 'belonging' to the middle class. Lack of disposable income really does separate us from entire swaths of society where so many enriching life expériences remain unattainable, relegating us to the daily humdrum.
28
No ae; not zero value. I received a liberal arts degree in science education and have done quite well. See how useless anecdotal stories are?
7
Well Sciencewins, all is said in your nickname. You opted for a degree in science education which opens doors in BOTH education and private industry. For my part, I fully assume responsibility for my ill-advised choices in French and English degrees of ZERO professional outside of the altogether praiseworthy vocation of education. Look up STEM to learn which fields are TODAY more conducive towards lucrative careers more in line with a comfortably middle-class lifestyle.
If I had children, I would not encourage them in any way to earn a degree in the 'humanities' : literature, foreign languages, art history, philosophy, and theology are past times only suited today for dilettante offspring of one-percenters. Not bitter, merely quite lucid.
If I had children, I would not encourage them in any way to earn a degree in the 'humanities' : literature, foreign languages, art history, philosophy, and theology are past times only suited today for dilettante offspring of one-percenters. Not bitter, merely quite lucid.
2
they say our feeling of success is very relative - we compare to our neighbours, etc.
I like to say 'when I was a kid I went outside in the middle of winter to chop the wood to light the fire to heat the stove to cook our breakfast' - tell that to kids these days and they'd just stare at you uncomprehending - 'why wouldn't you just turn the knob ?'
when I was a kid luxury was maybe once-a-month trip to the local Chinese restaurant with a casserole pot - they'd fill it with chow mien which we'd bring home and put on the dining table for dinner - nowadays we eat out at sit-down restaurants twice a week and think nothing of it - I liked the comment about young people today 'my credit card's maxed out - where are we going for dinner ?'
which reminds me of the other phrase about the difference between rich and poor - 'rich people have difficulty understanding, when poor people want to eat, why they don't just ring the bell'
I like to say 'when I was a kid I went outside in the middle of winter to chop the wood to light the fire to heat the stove to cook our breakfast' - tell that to kids these days and they'd just stare at you uncomprehending - 'why wouldn't you just turn the knob ?'
when I was a kid luxury was maybe once-a-month trip to the local Chinese restaurant with a casserole pot - they'd fill it with chow mien which we'd bring home and put on the dining table for dinner - nowadays we eat out at sit-down restaurants twice a week and think nothing of it - I liked the comment about young people today 'my credit card's maxed out - where are we going for dinner ?'
which reminds me of the other phrase about the difference between rich and poor - 'rich people have difficulty understanding, when poor people want to eat, why they don't just ring the bell'
3
Yes, we seem to lose "standard of living" - i.e. ABSOLUTE wealth - in the discussions of income disparity / middle classs - i.e. RELATIVE wealth.
1
When I was shopping for a house for my move from Arizona to Texas in 2006 the realtor explained to me that I should be looking to buy an average priced home in a good neighborhood rather than a top-priced home in a less affluent neighborhood or a starter-home in a more affluent neighborhood. Even if the price and amenities were identical. Thinking it through I could see the point.
We are all 'middle-class' when it comes to that. We hide in the herd. No one wants to be the shabby or shiny standout. The first may be shunned, the latter envied and targeted.
Thus we end up with the 'millionaire next door' and, unfortunately, the family on food stamps and one missed payment away from foreclosure on the same block.
But it has really always been this was, hasn't it?
I think what is changed now is a general change in attitude. The 'middle class' spawned by the greatest generation had unreasonable hope. The 'middle class' today has been bombarded with gloom for decades and has started to take it in without question.
I have no sound advice to give as if it were a universal panacea but can speak to what has worked for me. My personal attitude has made significant progress since I stopped worrying about my own situation and started trying to help others.
It is something I learned from my often struggling lower middle class grandfather, who spent the last thirty years of his life as a volunteer Civil Defense Director in a small California town. A happier man I never knew.
We are all 'middle-class' when it comes to that. We hide in the herd. No one wants to be the shabby or shiny standout. The first may be shunned, the latter envied and targeted.
Thus we end up with the 'millionaire next door' and, unfortunately, the family on food stamps and one missed payment away from foreclosure on the same block.
But it has really always been this was, hasn't it?
I think what is changed now is a general change in attitude. The 'middle class' spawned by the greatest generation had unreasonable hope. The 'middle class' today has been bombarded with gloom for decades and has started to take it in without question.
I have no sound advice to give as if it were a universal panacea but can speak to what has worked for me. My personal attitude has made significant progress since I stopped worrying about my own situation and started trying to help others.
It is something I learned from my often struggling lower middle class grandfather, who spent the last thirty years of his life as a volunteer Civil Defense Director in a small California town. A happier man I never knew.
22
"...how they stack up in relation to their parents, friends, neighbors and colleagues — are just as important as purely economic criteria."
But is it really that important?...and if so, is that necessarily a good thing, when you are basing your own level of happiness and/or your self-perception on how you 'compare' to others?
Let's face it...'society' as a whole is dumb. Who cares what society says or thinks of you, or how you measure up. Do whatever makes you happy. Remember that it's all a game....this notion of what constitutes 'success' or 'happiness'. It's not all about money and status symbols (though surely all the businesses who stand to profit from convincing you otherwise, will never admit that).
But is it really that important?...and if so, is that necessarily a good thing, when you are basing your own level of happiness and/or your self-perception on how you 'compare' to others?
Let's face it...'society' as a whole is dumb. Who cares what society says or thinks of you, or how you measure up. Do whatever makes you happy. Remember that it's all a game....this notion of what constitutes 'success' or 'happiness'. It's not all about money and status symbols (though surely all the businesses who stand to profit from convincing you otherwise, will never admit that).
14
Sorry lisa; who cares? We all do because we're social creatures.
5
I just couldn't help remembering the old song by Mitch Miller and the Gang, "Ain't we got fun." Here goes the first three stanza's:
Every morning, every evening, ain't we got fun?
Not much money, oh, but honey, ain't we got fun?
The rent's unpaid dear and we haven't a bus
But smiles were made dear for people like us.
in the winter, in the summer, don't we have fun?
times are bum and getting bummer
still we have fun.
There's nothing surer:
the rich get rich, and the poor get poorer.
In the meantime, in between time, ain't we got fun?
This song was written in 1937. Seems things haven't changed much!
Every morning, every evening, ain't we got fun?
Not much money, oh, but honey, ain't we got fun?
The rent's unpaid dear and we haven't a bus
But smiles were made dear for people like us.
in the winter, in the summer, don't we have fun?
times are bum and getting bummer
still we have fun.
There's nothing surer:
the rich get rich, and the poor get poorer.
In the meantime, in between time, ain't we got fun?
This song was written in 1937. Seems things haven't changed much!
8
Yup, we were in the Great Depression then. In the summer of 1937, the nation plunged into another recession.
2
I'm not middle class and I know it. I don't own a home. I will never own a home because I'm now too old and before I never made enough to even try. I make too much to qualify for any aid or affordable housing but that's because of how low the cutoffs for those things are. I don't feel secure. I have not felt secure since 1994 which was the first time I lived through 4 months of being unemployed. I lived through about a year of being unemployed back in 1997-98. Then I got to live through it once more in 2013 and a good part of 2014.
I have not taken a decent vacation since 1994. I do not have enough money to retire. I do not expect to live to be as old as my mother or have the health my mother has had. I do expect to be homeless and unemployed because nothing has been done to help the working people in America since the 1980s. I gave up hoping for a better future when I saw costs rising faster than my salary, when companies stopped investing in employees, when the rising costs for education and housing outstripped my modest salary.
I do not feel secure. I do not feel that America is a good place to live. If I were 30 years younger I'd move to another country for a job. I might be treated like a human being rather than a replaceable object. I might be able to work to live rather than live to work.
I have not taken a decent vacation since 1994. I do not have enough money to retire. I do not expect to live to be as old as my mother or have the health my mother has had. I do expect to be homeless and unemployed because nothing has been done to help the working people in America since the 1980s. I gave up hoping for a better future when I saw costs rising faster than my salary, when companies stopped investing in employees, when the rising costs for education and housing outstripped my modest salary.
I do not feel secure. I do not feel that America is a good place to live. If I were 30 years younger I'd move to another country for a job. I might be treated like a human being rather than a replaceable object. I might be able to work to live rather than live to work.
455
hen3ry...You are not alone, many of us Boomers bought into the 'go to college, you'll be secure' mantra of the 60s and early 70s. Meanwhile, the Golden Age our parents enjoyed passed by...
38
Americans for hen3ry 2015 !
25
Sad truth is, if you lived in a country with better social provisions, you would have had a better shot. I think Americans need to get their head around the idea that we must choose: sacrifice a greater portion of the extraordinary wealth of a few in order to ease the anxiety of those who are struggling.
69
selfish, unscrupulously manipulative, blind to unfairness as long as they benefit from it, greedy, and self-centered.
This isn't sour grapes, because I've done fine. And there are exceptional ultra-wealthy Americans who have seen their bizarre levels of wealth as an obligation to make the world a better place.
But generally, low class--yachts, mansions, massive PAC contributions and all.