People walk outside past the New York Stock Exchange (NYSE) building at the close of the day in New York City. ; Credit: Spencer Platt/Getty Images
For the first time since the 1970s, middle-class Americans are no longer the majority.
A study out earlier this month from Pew Research shows that there are now as many Americans in the middle class as there are in the tiers above and below it. 120.8 million adults were in middle-income households while 121.3 million were in the upper and lower income tiers combined.
What does this mean?
In terms of economic progress, it means people who were once considered middle-class are either making more money and have moved into the upper-income tier, or have fallen out of the middle class into poverty. Either way, growing upper and lower tiers mean the middle-class is fighting for an even smaller slice of the economic pie.
The Pew study showed 49 percent of U.S. total income went to upper-income households in 2014 while just 43 percent went to middle-income households. For comparison, those numbers were 29 percent and 62 percent, respectively, in 1970.
We can also look at the impact of the shrinking middle class through the lens of America’s political and cultural narrative.
The data would seem to suggest that while the U.S. has traditionally been known for its optimism, the strain of staying optimistic in the face of issues like political discord in Washington, national security, or race relations that are weighing on the country’s collective consciousness and eroding confidence that things will get better.
Still, others disagree with Pew’s findings, saying that it’s impossible to give a blanket definition of the ‘middle-class,’ and therefore you can’t accurately measure who’s moving or not moving on the economic ladder.
What are the social, political, cultural, and economic implications of a shrinking middle class?
Guests:
Michael Lind, policy director of the Economic Growth Program at the New America Foundation, which he also co-founded. He is the author of numerous books, including his most recent, “Land of Promise: An Economic History of the United States” (Harper, 2013)
David Madland, senior fellow and strategic director of the American Worker Project at the Center for American Progress, a left-leaning economic think tank. He is the author of “Hollowed Out: Why the Economy Doesn't Work without a Strong Middle Class” (University of California Press, 2015)