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The American Middle Class Is No Longer the World’s Richest

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  • The American Middle Class Is No Longer the World’s Richest

    The American Middle Class Is No Longer the World’s Richest

    The American middle class, long the most affluent in the world, has lost that distinction.

    While the wealthiest Americans are outpacing many of their global peers, a New York Times analysis shows that across the lower- and middle-income tiers, citizens of other advanced countries have received considerably larger raises over the last three decades.

    After-tax middle-class incomes in Canada — substantially behind in 2000 — now appear to be higher than in the United States. The poor in much of Europe earn more than poor Americans.

    The numbers, based on surveys conducted over the past 35 years, offer some of the most detailed publicly available comparisons for different income groups in different countries over time. They suggest that most American families are paying a steep price for high and rising income inequality.

    Although economic growth in the United States continues to be as strong as in many other countries, or stronger, a small percentage of American households is fully benefiting from it. Median income in Canada pulled into a tie with median United States income in 2010 and has most likely surpassed it since then. Median incomes in Western European countries still trail those in the United States, but the gap in several — including Britain, the Netherlands and Sweden — is much smaller than it was a decade ago.

    In European countries hit hardest by recent financial crises, such as Greece and Portugal, incomes have of course fallen sharply in recent years.

    The income data were compiled by LIS, a group that maintains the Luxembourg Income Study Database. The numbers were analyzed by researchers at LIS and by The Upshot, a New York Times website covering policy and politics, and reviewed by outside academic economists.

    The struggles of the poor in the United States are even starker than those of the middle class. A family at the 20th percentile of the income distribution in this country makes significantly less money than a similar family in Canada, Sweden, Norway, Finland or the Netherlands. Thirty-five years ago, the reverse was true.

    LIS counts after-tax cash income from salaries, interest and stock dividends, among other sources, as well as direct government benefits such as tax credits.

  • #2
    The rest of the world exitig the dark ages.
    "The DPRK is still in a state of war with the U.S. It's called a black out." - Che explaining why orbital nightime pictures of NK show few lights. Seriously.

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    • #3
      30 years of idiotic economic policy will do that.
      To us, it is the BEAST.

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      • #4
        America is performing dismally in several categories of social progress. Fascinating the areas where America is behind and who its neighbors are:

        “As a lifelong member of the Columbia Business School community, I adhere to the principles of truth, integrity, and respect. I will not lie, cheat, steal, or tolerate those who do.”
        "Capitalism ho!"

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        • #5
          Originally posted by Sava View Post
          30 years of idiotic economic policy will do that.
          More like 30 years of workers being less and less capable.
          I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
          - Justice Brett Kavanaugh

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          • #6
            Originally posted by Kidicious View Post
            More like 30 years of workers being less and less capable.
            Due to bad policy (wrt to education)
            “It is no use trying to 'see through' first principles. If you see through everything, then everything is transparent. But a wholly transparent world is an invisible world. To 'see through' all things is the same as not to see.”

            ― C.S. Lewis, The Abolition of Man

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            • #7
              Originally posted by pchang View Post
              Due to bad policy (wrt to education)
              That's true. We were better off with the USSR for an enemy. Maybe things will change for the better now.
              I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
              - Justice Brett Kavanaugh

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              • #8
                The irony of using lottery proceeds to fund education is almost off the charts. Unfortunately, lottery proceeds are not a real replacement for general tax funds (even if politicians have done so to get re-elected by keeping taxes lower).
                “It is no use trying to 'see through' first principles. If you see through everything, then everything is transparent. But a wholly transparent world is an invisible world. To 'see through' all things is the same as not to see.”

                ― C.S. Lewis, The Abolition of Man

                Comment


                • #9
                  That's the result of not being threatened by a powerful enemy or one that can be presented as powerful.
                  I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
                  - Justice Brett Kavanaugh

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