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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsStates where the middle class is shrinking fastest
https://homes.yahoo.com/news/states-where-the-middle-class-is-shrinking-fastest-194711986.htmlThe American economy is by many measures well on the road to full recovery. The national unemployment rate was 6.2% in 2013, down from 9.3% in 2009; U.S. gross domestic product grew 5% in the third quarter of 2014; and the S&P 500 recently reached its all time high.
And yet the middle class, which historically was the driver of economic growth, is falling behind. The average income among middle-class families shrank by 4.3% between 2009 and 2013, while incomes among the wealthiest 20% of American households grew by 0.4%.
Based on average pre-tax income earned by the third quintile, or the middle 20% of earners in each state, middle-class incomes in California declined the most in the country. Incomes among middle-class Californian households fell by nearly 7% between 2009 and 2013, while income among the states fifth quintile, or the top 20% of state earners, grew by 1.3%....
According to Joe Valenti, director of asset building at the Center for American Progress, the American middle class is essential for economic growth because middle income families are spending relatively large shares of their incomes on goods and services. An additional dollar in the hands of a middle income earner is going to drive a lot more spending than an additional dollar in the hands of someone in that top quintile, Valenti said. While households in the top quintile are able to spend enormous sums of money, at some point theres only so much that an individual can spend, even on all different kinds of luxury goods.
And yet the middle class, which historically was the driver of economic growth, is falling behind. The average income among middle-class families shrank by 4.3% between 2009 and 2013, while incomes among the wealthiest 20% of American households grew by 0.4%.
Based on average pre-tax income earned by the third quintile, or the middle 20% of earners in each state, middle-class incomes in California declined the most in the country. Incomes among middle-class Californian households fell by nearly 7% between 2009 and 2013, while income among the states fifth quintile, or the top 20% of state earners, grew by 1.3%....
According to Joe Valenti, director of asset building at the Center for American Progress, the American middle class is essential for economic growth because middle income families are spending relatively large shares of their incomes on goods and services. An additional dollar in the hands of a middle income earner is going to drive a lot more spending than an additional dollar in the hands of someone in that top quintile, Valenti said. While households in the top quintile are able to spend enormous sums of money, at some point theres only so much that an individual can spend, even on all different kinds of luxury goods.
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States where the middle class is shrinking fastest (Original Post)
KamaAina
Feb 2015
OP
woo me with science
(32,139 posts)1. K&R
HereSince1628
(36,063 posts)2. I'm sorta surprised that it isn't WI, MI or OH.
The states mentioned really aren't the one's I think of as under assault from extreme right wing governments.
Throd
(7,208 posts)3. Sadly, before I read the article, my prediction for #1 was accurate.
As the middle class shrinks or leaves, the contrast between extreme wealth and poverty becomes more apparent here with each passing year.