Quote of the day – September 13, 2012
The new census statistics, coming out just two months before the presidential election, should fuel the ongoing debate over the shrinking middle class, income inequality and a gnawing fear that for many, the American dream is receding out of reach. This week, the Pew Research Center said a third of Americans now identify themselves as lower class or lower-middle class, up from a quarter four years ago. Among young adults, the percentage who see themselves as occupying the bottom of the heap is even higher.
For many economists, the most troubling statistics were those on income inequality underscoring the middle-class squeeze. The 60 percent of households earning between roughly $20,000 and $101,000 collectively earned 46.6 of all income, a 1.5 percent drop. In 1990, they shared over 50 percent of income.
In contrast, the census data show, the top fifth rose 1.6 percent in 2011 after several years of decline during the recession. The biggest gains went to the top 5 percent, who earn more than $186,000; their share of income jumped almost 5 percent in a single year.– An excerpt from Carol Morello‘s piece for the Washington Post: “Census: Middle class shrinks to an all-time low”