![]() ![]() Pew Research Center’s income calculator is the quickest way to find the answer to that question.īut after you find out how you stack up, you may find the more important question is what do you do with that information so you can safely keep ascending that ladder. For many households, where they stand on the income ladder comes down to a feeling rather than numbers.īut how can you know if your feelings line up with reality? It is provided without warranty of any kind.The lines that divide Americans by economic class have always been blurry. This article provides information only and should not be construed as advice. This free service helps you save on interest payments Millions of Americans are in massive debt in the face of rising rates. Mitt Romney says a billionaire tax will trigger heavy demand for this physical asset - get in now before the super-rich swarm What to read nextĪmericans are paying nearly 40% more on home insurance compared to 12 years ago - here's how to spend less on peace of mind Those with crystal balls will want to take their best guesses - though, if you fall on the wrong side of the middle-class equation in the months ahead, crystal may become a luxury you can no longer afford. ![]() It’s fair to ask, then, whether the ranks and average income of the American middle class will shrink - especially when continued inflation and a possible recession enter the picture. In fact, this happened around the world, pushing many middle class families into poverty. Could COVID keep middle America down?Ī 2021 Pew study found that the pandemic not only stalled economic growth: It also froze the numbers in America’s middle class. And depending on where you live, the same middle class income may mean living in relative comfort or enduring a tight squeeze. Read more: 10 best investing apps for 'once-in-a-generation' opportunities (even if you're a beginner)Įven among the middle class, disparities exist.Īs of 2022, Pew identified a middle-income household as anywhere between $30,000 (for a single adult) to $67,000 (for a household of five). As of 2016, the gap had widened even further. In 1970, Pew Research found those in the upper class made more than twice what middle-income Americans made, and more than six times those in lower income households. Meanwhile, the fortunes of the middle class have paled in comparison to those in higher earnings brackets. For this reason, the 2000s are sometimes referred to as “the lost decade.” Pew figures show that the recession’s “lingering effects” left median incomes largely unchanged from 2000 to 2016. From a ‘lost decade’ to a growing gapĪrguably, no factor impacted the shifting ranks of the American middle class more than the Great Recession. To have the same effective income as $74,000 in 2010, you’d need to make roughly $101,000 in 2022, based on this CPI inflation calculator. Today, that figure sits at about $90,000 - which seems like a big leap until you account for how much buying power a dollar has today versus a dozen years ago. How much are middle-income Americans making?Īs of 2021, the American middle class remained stable at 50%, according to a Pew Research Center study released in April.That’s largely unchanged from 2011 figures.īut how do the percentages translate to earnings and earning power? Pew statistics show that for middle-class Americans, average incomes jumped 6% from $74,000 in 2010 to about $78,500 in 2016. Give your bank account a boost this week with these 3 easy money moves The US dollar has lost 98% of its purchasing power since 1971 - protect your retirement nest egg with this stable alternative 'Hold onto your money': Jeff Bezos issued a financial warning, says you might want to rethink buying a 'new automobile, refrigerator, or whatever' - here are 3 better recession-proof buys And as they’re forced to pinch their pennies, the 52% of American households that make up the middle class may be wondering if they’ll get relief anytime soon. While the average income continues to increase yearly, buying power has dropped and salaries haven’t seemed to keep up. Although the inflation rate has eased a bit from 8.2% in September, The BLS also found that the average hourly earnings have decreased 2.8% compared to last year. That not-so-great news is compounded by the fact that by comparison, the average American isn’t making enough to keep up. The latest inflation data from the Bureau of Labor Statistics showed there was an 7.7% increase in prices year over year. If Americans feel the need more than ever to stretch their dollars, it’s not hard to figure out why. ![]()
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