The Middle Class has Declined Because the Middle Class has Become Richer

[Toro]

It appears that the percentage of those in the middle class has declined, but not because there has been an increase in those in the lower class. The authors say its because more in the middle class have moved up to the upper class.

The claim that ordinary Americans are stagnating economically while only "the rich" are gaining is also incorrect. True enough, membership in the middle class seems to be declining—but this is because more American households are moving up.

The Census Bureau in 2012 compiled data on the percentage of U.S. households earning annual incomes, measured in 2009 dollars, in different income categories (for example, annual incomes between $25,000 and $35,000). These data reveal that between 1975 and 2009, the percentage of households in the low- and middle-income categories fell. The only two categories that saw an increase were households earning between $75,000 and $100,000 annually, and households earning more than $100,000 annually. Remarkably, the share of American households earning annual incomes in excess of $100,000 went to 20.1% in 2009 from 8.4% in 1975. Over these same years, households earning annual incomes of $50,000 or less fell to 50.1% from 58.4%.

Donald Boudreaux and Liya Palagashvili: The Myth of the Great Wages 'Decoupling' - WSJ.com

 

[Rshermr]

Cmon, Toro. You can do better. I do not read stuff from far left or far right talking heads. This is all about an opinion piece by two libertarians who never saw a worker they did not think was overpaid.

 

[DGS49]

The fundamental point is this: Anyone who talks about economic circumstances based on certain income categories over time is painting a false picture. Whether it is dishonest or not is for the reader to decide.

For years, Leftists have whined about the "Bottom 20%" and the "Top Quintile," while ignoring the fact that over a period of years most of the people in the "Bottom Quintile" have graduated to the second, third, and fourth Quintiles, and even the top quintile in some cases. And the people at the very top are constantly churning as well.

So to say that the bottom 20% today are worse off than the bottom 20% five years ago is bullshit, because those PEOPLE are different from the bottom 20% of five years ago.

 

[Rshermr]

The fundamental point is this: Anyone who talks about economic circumstances based on certain income categories over time is painting a false picture. Whether it is dishonest or not is for the reader to decide.

For years, Leftists have whined about the "Bottom 20%" and the "Top Quintile," while ignoring the fact that over a period of years most of the people in the "Bottom Quintile" have graduated to the second, third, and fourth Quintiles, and even the top quintile in some cases. And the people at the very top are constantly churning as well.

So to say that the bottom 20% today are worse off than the bottom 20% five years ago is bullshit, because those PEOPLE are different from the bottom 20% of five years ago.

Great opinion. BS, but opinion none the less. Perhaps you have a link showing those climbing out of poverty at such great speed.
It is not the left, me boy, producing studies. But good try.

 

[Toro]

Cmon, Toro. You can do better. I do not read stuff from far left or far right talking heads. This is all about an opinion piece by two libertarians who never saw a worker they did not think was overpaid.

The Census Bureau in 2012 compiled data on the percentage of U.S. households earning annual incomes, measured in 2009 dollars, in different income categories (for example, annual incomes between $25,000 and $35,000). These data reveal that between 1975 and 2009, the percentage of households in the low- and middle-income categories fell. The only two categories that saw an increase were households earning between $75,000 and $100,000 annually, and households earning more than $100,000 annually. Remarkably, the share of American households earning annual incomes in excess of $100,000 went to 20.1% in 2009 from 8.4% in 1975. Over these same years, households earning annual incomes of $50,000 or less fell to 50.1% from 58.4%.

That's from the Census Bureau. There is no editorializing.

So, are they right or wrong?

 

[TakeAStepBack]

Have they adjusted their income margins for inflation. There is little doubt that in 1975 there were less people in the 100k and over crowd. Purchasing power was also exceptionally better than it is today. So it would make sense that over the years following 75 more people moved into a category such as 100K.

a gallon of gas was around ,44 cents and a new car could be purchased for around 4K. which, was actually sticker chock at the time. A new home ran on average about 35K.

 

[Toro]

Have they adjusted their income margins for inflation. There is little doubt that in 1975 there were less people in the 100k and over crowd. Purchasing power was also exceptionally better than it is today. So it would make sense that over the years following 75 more people moved into a category such as 100K.

a gallon of gas was around ,44 cents and a new car could be purchased for around 4K. which, was actually sticker chock at the time. A new home ran on average about 35K.

Yes. The data is measured in 2009 dollars.

 

[Bombur]

Cmon, Toro. You can do better. I do not read stuff from far left or far right talking heads. This is all about an opinion piece by two libertarians who never saw a worker they did not think was overpaid.

The Census Bureau in 2012 compiled data on the percentage of U.S. households earning annual incomes, measured in 2009 dollars, in different income categories (for example, annual incomes between $25,000 and $35,000). These data reveal that between 1975 and 2009, the percentage of households in the low- and middle-income categories fell. The only two categories that saw an increase were households earning between $75,000 and $100,000 annually, and households earning more than $100,000 annually. Remarkably, the share of American households earning annual incomes in excess of $100,000 went to 20.1% in 2009 from 8.4% in 1975. Over these same years, households earning annual incomes of $50,000 or less fell to 50.1% from 58.4%.

That's from the Census Bureau. There is no editorializing.

So, are they right or wrong?

Of course household income grew, more women are working.

None of this really establishes trends in what workers are being paid. There is no doubt that the large increases in the female workforce and their education has helped modern households earn more money.

 

[william the wie]

Sounds good to me at least no commingling of terms that refer to wealth and income. Net worth seems to be the worrying problem.