84 Statistics Showing The Collapse Of The Middle Class Is Real
The middle class in America is being systematically destroyed.Â Once upon a time the United States had the largest and most vibrant middle class in the history of the world.Â The rest of the globe looked at us in envy and wondered what we were doing right.Â But now everything seems to be going wrong for the middle class.Â Millions of our jobs have been shipped out of the country and competition for the remaining jobs is keeping wages at depressed levels.Â Meanwhile, the cost of living just keeps going up and up and middle class budgets are being stretched and strained like never before.Â Millions more Americans fall out of the middle class and into poverty every single year, and government dependence is at an all-time high.Â Finding a solution to the decline of the middle class is absolutely central to fixing the economic problems in this country.Â Without a large, thriving middle class this would not be America.Â The truth is that people from all over the world want to come here because they want to work hard, buy a house, raise a family and provide a better future for their children.Â This has traditionally been “the land of opportunity”, but now the middle class is rapidly declining and none of our politicians seem to have any solutions.Â With each passing day, the American Dream is slipping through the fingers of millions of hard working American families.Â We owe it to them to get this thing fixed.
The following are 84 statistics that prove that the decline of the middle class is real and that it is getting worse….
1.Â According to the Pew Research Center, 61 percent of all Americans were “middle income” back in 1971.Â Today, onlyÂ 51 percentÂ of all Americans are.
2.Â The Pew Research Center has also found thatÂ 85 percentÂ of middle class Americans say that it is harder to maintain a middle class standard of living today compared with 10 years ago.
3.Â 62 percent of middle class Americans say that they have had toÂ reduce household spendingÂ over the past year.
4.Â TheÂ averageÂ net worth of a middle class family in America was $129,582 in 2001.Â By 2010 that figure had dropped toÂ $93,150.
5.Â According to the Federal Reserve, theÂ medianÂ net worth of all families in the United States declined “from $126,400 in 2007 to $77,300 in 2010“.
6.Â Back in 1970, middle income Americans brought home 62 percent of all income in the United States.Â In 2010, middle income Americans only brought homeÂ 45 percentÂ of all income.
7.Â After you adjust for inflation, median family income in the United States has fallenÂ by about 6 percentÂ since the year 2000.
8.Â Real median household income has decreasedÂ by more than 4000 dollarsÂ since Barack Obama entered the White House.
9.Â Amazingly,Â more than half of all AmericansÂ are now at least partially financially dependent on the government.
11.Â If you can believe it, one recent survey found thatÂ 28 percentÂ of all Americans do not have a single penny saved for emergencies.
12.Â The United States was once ranked #1 in the world in GDP per capita.Â Today we have slippedÂ to #12.
13.Â The total value of household real estate in the U.S. has declined from $22.7 trillion in 2006 toÂ $16.2 trillionÂ today.Â Most of that wealth has been lost by the middle class.
15.Â Since the year 2000, incomes for U.S. households led by someone between the ages of 25 and 34 have fallenÂ by about 12 percentÂ after you adjust for inflation.
16.Â In 1984, the median net worth of households led by someone 65 or older wasÂ 10 timesÂ larger than the median net worth of households led by someone 35 or younger.Â Today, the median net worth of households led by someone 65 or older isÂ 47 timesÂ larger than the median net worth of households led by someone 35 or younger.
18.Â There are nowÂ 20.2 million AmericansÂ that spend more than half of their incomes on housing.Â That represents a 46 percent increase from 2001.
19.Â The average American household spent approximatelyÂ $4,155Â on gasoline during 2011, and electricity bills in the U.S. have risen faster than the overall rate of inflationÂ for five years in a row.
20.Â Over the past decade, health insurance premiumsÂ have risen three times fasterÂ than wages have in the United States.
21.Â Health insurance costs have risenÂ by 23 percentÂ since Barack Obama became president. According to the Bureau of Economic Analysis, health care costs accounted for just 9.5% of all personal consumption back in 1980.Â Today they account for approximatelyÂ 16.3%.
22.Â Back in 1983, the bottom 95 percent of all income earners had 62 cents of debt for every dollar that they earned.Â By 2007, that figure had soaredÂ to $1.48.
23.Â Total home mortgage debt in the United States is nowÂ about 5 times largerÂ than it was just 20 years ago.
24.Â Total consumer debt in the United States has risen byÂ 1700 percentÂ since 1971.
25.Â Recently it was announced that total student loan debt in the United States has passedÂ the one trillion dollar mark.
26.Â One study found thatÂ approximately 41 percentÂ of all working age Americans either have medical bill problems or are currently paying off medical debt.
27.Â According to a report published in The American Journal of Medicine, medical bills are a major factor inÂ more than 60 percentÂ of the personal bankruptcies in the United States.Â Of those bankruptcies that were caused by medical bills, approximately 75 percent of them involved individuals that actually did have health insurance.
28.Â According to a report released in 2010, AmericansÂ spend approximately twice as muchÂ as residents of other developed countries do on health care.
29.Â According to one recent survey,Â approximately 10 percentÂ of all employers in the United States plan to drop health coverage when key provisions of the new health care law kick in less than two years from now.
30.Â According to one recent survey, approximatelyÂ one-third of all AmericansÂ are not paying their bills on time at this point.
31.Â The wealthiest 20 percent of all Americans now controlÂ 84 percentÂ of all the wealth in America.
32.Â Right now, over 50 percent of all stocks and bonds are owned by justÂ 1 percentÂ of the U.S. population.
34.Â 40 years ago, the top 1/10,000th of all U.S. households brought in about 1 percent of all income.Â Today, they bring in aboutÂ 5 percentÂ of all income.
35.Â Today, the wealthiest 1 percent of all Americans own more wealth than the bottom 95 percentÂ combined.
36.Â TheÂ wealthiest 400 familiesÂ in the United States have about as much wealth as the bottom 50 percent of all Americans do combined.
37.Â The six heirs of Wal-Mart founder Sam Walton have a net worth that is roughly equal to theÂ bottom 30 percentÂ of all Americans combined.
38.Â At this point, the poorest 50 percent of all Americans collectively ownÂ just 2.5%Â of all the wealth in the United States.
39.Â The following is how income gains in the United States were distributedÂ during 2010….
-37 percent of all income gains went to the top 0.01 percent of all income earners
-56 percent of all income gains went to the rest of the top 1 percent
-7 percent of all income gains went to the bottom 99 percent
40.Â The U.S. economy lostÂ more than 220,000 small businessesÂ during the recent recession.
41.Â The percentage of Americans that are self-employed fellÂ by more than 20 percentÂ between 1991 and 2010.
42.Â Overall, the number of “new entrepreneurs and business owners” droppedÂ by a staggering 53 percentÂ between 1977 and 2010.
43.Â In 2010, the number of jobs created at new businesses in the United States wasÂ less than halfÂ of what it was back in the year 2000.
44.Â The average pay for self-employed Americans fell byÂ $3,721Â between 2006 and 2010.
45.Â In the United States today, there are 240 million working age people.Â Only aboutÂ 140 millionÂ of them are working.
46.Â Since the year 2000,Â the United States has lost 10%Â of its middle class jobs.Â In the year 2000 there were about 72 million middle class jobs in the United States but today there are only about 65 million middle class jobs.
48.Â Right now, approximatelyÂ 25 millionÂ American adults are living with their parents.
49.Â According to one study, between 1969 and 2009 the median wages earned by American men between the ages of 30 and 50 droppedÂ by 27 percentÂ after you account for inflation.
50.Â According to U.S. Representative Betty Sutton, America has lost an average ofÂ 15 manufacturing facilities a dayÂ over the last 10 years.Â During 2010 it got even worse.Â That year, an average ofÂ 23 manufacturing facilities a dayshut down in the United States.
51.Â At this point,Â one out of every fourÂ American workers has a job that pays $10 an hour or less.
52.Â Today, aboutÂ one out of every fourÂ workers in the United States brings home wages that are at or below the poverty level.
53.Â If you can believe it, the United States actually has aÂ higher percentageÂ of workers doing low wage work than any other major industrialized nation does.
55.Â At this point, onlyÂ 24.6 percentÂ of all jobs in the United States are considered to be good jobs.
56.Â Right now, approximatelyÂ 48 percentÂ of all Americans are either considered to be “low income” or are living in poverty.
57.Â ApproximatelyÂ 57 percentÂ of allÂ childrenÂ in the United States are living in homes that are either considered to be either “low income” or impoverished.
58.Â In the United States today, somewhere aroundÂ 100 million AmericansÂ are considered to be either “poor” or “near poor”.
60.Â It is being projected that when the final numbers come out later this year that the U.S. poverty rate will be the highest that it has beenÂ in almost 50 years.
61.Â It is also being projected that aboutÂ half of all American adultsÂ will spend at least some time living below the poverty line before they turn 65.
62.Â Today,Â one out of every sixÂ elderly Americans lives below the federal poverty line.
63.Â It was recently reported that 1.5 million American families liveÂ on less than two dollars a dayÂ (before counting government benefits).
64.Â According to the U.S. Census Bureau, the percentage of “very poor” roseÂ in 300Â out of the 360 largest metropolitan areas during 2010.
65.Â According to one recent poll,Â 18.2 percentÂ of all Americans have not been able to buy enough food to eat at some point during this past year.
66.Â Households that are led by a single mother have aÂ 31.6%Â poverty rate.
67.Â In 2010,Â 42 percentÂ of all single mothers in the United States were on food stamps.
68.Â At this point, approximatelyÂ 22 percentÂ of all American children are living in poverty.
69.Â According to the National Center for Children in Poverty,Â 36.4 percentÂ of all children that live in Philadelphia are living in poverty,Â 40.1 percentÂ of all children that live in Atlanta are living in poverty,Â 52.6 percentÂ of all children that live in Cleveland are living in poverty andÂ 53.6 percentÂ of all children that live in Detroit are living in poverty.
70.Â Since 2007, the number of children living in poverty in the state of California has increasedÂ by 30 percent.
71.Â Child homelessness in the United States has risen byÂ 33 percentÂ since 2007.
72.Â There are 314 counties in the United States whereÂ at least 30% of the childrenÂ are facing food insecurity.
73.Â ApproximatelyÂ one-fourthÂ of all American children are enrolled in the food stamp program.
74.Â It is projected thatÂ half of all American childrenÂ will be on food stamps at least once before they turn 18 years of age.
75.Â Since Barack ObamaÂ became president, the number of Americans living in poverty has risen by 6 million and the number of Americans on food stamps has risen by 14 million.
76.Â According to the U.S. Census Bureau,Â 49 percentÂ of all Americans live in a home where at least one person receives benefits from the federal government. Â Back in 1983, that number was below 30 percent.
77.Â Federal housing assistance outlays increased by a whoppingÂ 42 percentÂ between 2006 and 2010.
78.Â ApproximatelyÂ 50 millionÂ Americans do not have any health insurance at all right now.
79.Â Back in 1965, only one out of every 50 Americans was on Medicaid.Â Today,Â approximately one out of every 6Â Americans is on Medicaid.
80.Â It is being projected that Obamacare will addÂ 16 million more AmericansÂ to the Medicaid rolls.
81.Â Overall, the amount of money that the federal government gives directly to the American people has risenÂ by 32 percentÂ since Barack Obama entered the White House.
82.Â According to a recent report producedÂ by Pew Charitable Trusts, approximately one out of every three Americans that grew up in a middle class household has slipped down the income ladder.
83.Â If you can believe it,Â more than 100 million AmericansÂ are enrolled in at least one welfare program run by the federal government at this point.
84.Â In the United States today,Â 77 percentÂ of all Americans are living to paycheck to paycheck at least some of the time.
So what do all of you think about the decline of the middle class?
Feel free to post a comment with your thoughts below….
Written By Michael Snyder
Michael has an undergraduate degree in Commerce from the University of Virginia and a law degree from the University of Florida law school.Â Â He also has an LLM from the University of Florida law school. Michael has worked for some of the largestÂ lawÂ firmsÂ inÂ WashingtonÂ D.C., but now is mostly focus on trying to make a difference in the world.