Interesting data here from the Seattle Times: The incredible shrinking middle class
While we all know things are harder – not economically better – the data doesn’t appear to show this. In fact, it’s showing that during the last 40 years, while the middle-class has shrunk, people have become more affluent not poor.
Look at the numbers: During the last 40 years, there are 20% fewer adults in the middle class and 25% more who are in the lower middle-class. However, there are also 20% more in the upper middle-class than 40 years ago and many more in the upper tier, which has also grown by more than 200%. In other words, while some middle class people have lost ground, many more have gained ground. Yes, I tend to look at the glass as being half empty. I know it is. I see it all around me. I don’t have to look at any data to know it is true. But this information would appear to show that there’s a lot more upper middle and rich people than ever before in the last 40 years.
Go back to 2001 and you’ll see that while the middle-class has dropped by 4% since then while the upper middle and top tier grew by 3%. The lowest tier grew by 2%. More people moved into the upper brackets than the lower brackets since that time. I’m sure it’s off by the 1 percent due to rounding. This would appear to be a net-positive news and showing more upward mobility from the middle class than downward mobility.