Pew Report has it that the middle class in United States is gradually shrinking and no longer the majority.
According to Forbes, it is difficult to see this as a problem. The middle class is said to be shrinking “because the portion of the population in the lowest income tier is falling” while “the portion in the two highest is growing”. What this means is that we now have a fewer poor people and more rich people.
More rich people, fewer poor people may means that our economy is on the right track since this trend is what we would wish to see happen.
Forbes reports that “the portion of the population in the two lower groups has risen by 20% over these years being measured” while “the portion moving into the two upper groups has risen by 50% over the same period and can be interpreted to mean that more people are getting richer”
Below, is the PRIOR statistic of the middle class in America
Below is the CURRENT statistics
According to Forbes, “It is worthy to note that Pew has used the Current Population Survey Social and Economic Supplements as their source. This includes market income but not taxation nor benefits (Social Security is money income in this definition) and does not include welfare benefits in kind (EITC, Section 8, SNAP and so on). And those benefits in kind have very definitely increased in size to that lower end of the income distribution and also as a portion of the redistribution that is done to those lower in come households. The CPS overstates the poverty rate and understates poor household consumption, something that affects these numbers too”. ~ New Tidbits With FAB