A Nation Adrift: Studies Confirm The Slow Sinking of the US Middle Class

by Nomad

Due to economic policies of going back 30 years, studies show, the American middle-class is withering on the vine. While the US may still be the richest country in the world, that wealth has not trickled down to the middle class at all, compared to other nations. The effects of this shrinkage of the middle class could spell big trouble in America's future. 

Falling Behind

Most of us have known for quite some time now but a New York Times article has recently confirms the fact. According to an analysis of the numbers based on surveys reviewing the last 35 years, figures show that across the lower- and middle-income tiers, citizens of other advanced countries have received considerably larger raises over the last three decades.
In other words, the impact of income inequality based on flawed policy is driving Middle-class families to the point of extinction.

The numbers, based on surveys conducted over the past 35 years, offer some of the most detailed publicly available comparisons for different income groups in different countries over time. They suggest that most American families are paying a steep price for high and rising income inequality.

Hardly startling news, of course, but the proof is fairly conclusive when compared to other countries. 
If studies are anything to go by, then it isn't that America overall is being poorer, only that the middle-class is withering away. The top half of the income scale is still wealthier than any other nation. Indeed, when it comes to global economic growth, America is still a powerhouse, but that's not the problem. The problem is the middle class is clearly not benefiting. 

While America might remain the most wealthy country in the world, the actual distribution of that wealth has changed considerably since our parents' day. As a New York Times article explained:

With a big share of recent income gains in this country flowing to a relatively small slice of high-earning households, most Americans are not keeping pace with their counterparts around the world.

And a comparison of nations makes pretty grim reading. While median income has risen in other countries, in the US, adjusting for inflation, median income per capita has remained virtually unchanged since 2000.

The same measure, by comparison, rose about 20 percent in Britain between 2000 and 2010 and 14 percent in the Netherlands. Median income also rose 20 percent in Canada between 2000 and 2010, to the equivalent of $18,700. Other income surveys, conducted by government agencies, suggest that since 2010 pay in Canada has risen faster than pay in the United States and is now most likely higher. Pay in several European countries has also risen faster since 2010 than it has in the United States.

The cause of the decline are obvious but that doesn't mean they are easy to fix. There will be no quick fixes. It will take compromise and concerted effort to reverse the trend. 

That's something that seems to be in short supply in Washington.