A Rapidly Shrinking American Middle Class

The richest 1% of all Americans have a greater net worth than the bottom 90% combined… Which about says it all.

(A) 15 Mind-Blowing Facts About Wealth And Inequality In America

Click to view the charts.

#1 The gap between the top 1% and everyone else hasn’t been this bad since the Roaring Twenties
This chart shows average income of the top 1% as a multiple of average income of the bottom 90% (via The Nation)
#2 Half of America has 2.5% of the wealth
#3 Half of America has only 0.5% of America’s stocks and bonds
#4 Look at the wealth gap grow!
#5 The last two decades were great…if you were a CEO or owner. Not if you were anyone else
#6 Real average earnings have not increased in 50 years.
#7 And savings rates are sinking.
#8 Despite the myth of social mobility, poor Americans have a SLIM CHANCE of rising to the upper middle class.
#9 Republican tax cuts have significantly increased the wealth gap.
#10 Meanwhile, income tax is getting lower and lower for the rich.
#11 America spreads its wealth FAR LESS than other developed countries.
#12 America’s income spread is nearly twice the OECD average.
#13 The income gap is NOT growing in other countries, like France.
#14 Inequality is worst around Wall Street and Oil Land.
#15 If you aren’t in the top 1%, then you’re getting a bum deal.
Normalized to 1979, the top 1% have seen their share of America’s income more than double. The bottom 90% have seen their portion shrink.

(B) 34 Signs That Point To A Rapidly Shrinking American Middle Class

Do you ever get the feeling that the middle class in America is shrinking? Well, you are not imagining things

(1) Only 42% of all jobs in the U.S. are middle income jobs
That’s a 10 percent drop from 1980
(2) Similarly, more than 40% of all jobs are now low income jobs
And that’s up from less than 30 percent in 1980
(3) Only 63.5% of men are working
That’s full or part-time. This is actually up from 63.3 percent in December 2009, the lowest national percentage since 1948
(4) Just 81.2% of men ages 25-54 are working
In 1969, almost all men (95 percent) between ages 25 and 54 were employed.
(5) For 64% of America, a $1000 expense means a loan
The majority of us would need to borrow the money if an unexpected $1000 dollar purchase had to be made
(6) 40% of all wealth is owned by the top 1%
The wealthiest 1 percent have almost half the total wealth in the country.
(7) The poorest 50% of all Americans control just 2.5% of the wealth in the U.S
(8) The top 1% owns 50% of stocks and bonds as well
(9) The bottom 90% have an average $31,244 per year income
(10) Meanwhile, the top 0.1% earn $5.6 million on average
That’s $5.6 million, every year.
(11) The median wage for men 30-50 has dropped by 27%
That’s after accounting for inflation, from 1969 to 2009.
(12) Only the top 5% of U.S. households can match rising housing costs
Costs have been rising steadily since 1975, and only the top 5 percent have enough additional income to keep up
(13) We have the lowest employee compensation in 50 years
That’s relative to our gross domestic product during the economic downturn.
(14) Health care costs account for roughly 16.3% of all personal spending.
It was just 9.5 percent back in 1980.
(15) Credit card debt is more than 8x larger today
Total credit card debt was 1/8 as much in the 1980s
(16) Despite adding 30 million people to the population, there are fewer payroll jobs now than in 2000
(17) In 11 years we lost 10% of middle class jobs
In 2000 there were about 72 million middle class jobs in the U.S., and today there are about 65 million middle class jobs
(18) At a recent “National Hiring Day” held by McDonald’s only about 6.2 percent of the one million Americans that applied were hired
Obtaining a low wage job is about as hard as getting into an Ivy League: roughly 7 percent of all those that apply to get into Harvard are accepted
(19) 40 weeks for a new job
An average unemployed worker in the U.S. needs an average of 40 weeks — more than 9 months — to find a new job
(20) Higher wage industries account for 40% of job loss and 14% of job growth
Compare that to lower wage industries, which account of 49 percent of job growth and 23 percent of job losses
(21) Half of all American workers earn $505 a week or less
(22) College tuition has risen 900% since 1978
(23) Over 100,000 janitors and 317,000 food servers in the U.S. today have college degrees
(24) Despite their education, 17 million college graduates are doing jobs that do not even require a college degree
(25) 36 percent of Americans say that they don’t contribute anything to a retirement plan
According to a recent survey by CareerBuilder.com
(26) 1 of 50 to 1 of 6 on Medicaid
In 1965, only one out of every 50 Americans received Medicaid. Today, it is one out of every 6
(27) More than 45 million Americans are on food stamps
This is an all-time record — way up from a 2007 count that put the number of users at 26 million
(28) 74% food stamp increase since 2007
(29) 1 out of every 4 American children are on food stamps
(30) 18.4% of personal income comes from government transfer payments
Back in 1980, the number was at 11.7 percent
(31) Food pantry and soup kitchen attendance is up 46% over the last 5 years
The number of Americans attending food pantries and soup kitchens has increased by 46% over the last five years.
(32) 1 out of every 6 elderly Americans now lives below the federal poverty line
(33) In the U.S., over 20 percent of all children are now living in poverty
Compare that number to the UK and France, where childhood poverty is well under 10 percent
(34) The richest 1% of all Americans have a greater net worth than the bottom 90% combined
Which about says it all.

(C) The 20 Cities That Have Completely Missed The Recovery
#20 Dayton, OH     #19 Portland, OR     #18 Phoenix, AZ     #17 Grand Rapids, MI
#16 Sacramento, CA     #15 Stockton, CA     #14 Orlando, FL     #13 Modesto, CA
#12 Lakeland, FL     #11 Riverside, CA     #10 Youngtown, OH     #9 Miami, FL
#8 Boise City, ID     #7 Jacksonville, FL     #6 Tampa, FL     #5 Palm Bay, FL
#4 Bradenton, FL     #3 Cape Coral, FL     #2 Las Vegas, NV     #1 Detroit, MI

(D) The 20 Cities Where Housing Is Worse Than It Was Last Year

The housing market continues its double dip trajectory, confirmed by the latest Case-Shiller data. The U.S. national index plunged 5.88% year-over-year. The 20-city composite declined 4.5% year-over-year versus expectations of 4.7%.
Now prices in all 20 cities are in decline year-over-year.

Check out the interactive charts tracking the double dip for each metropolitan area and how it stacks up to the national average.


What was Barack Obama saying before he was elected?


About benvitalis

math grad - Interest: Number theory
This entry was posted in Economics and tagged , . Bookmark the permalink.

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