So is the US middle class really a lot richer than you thought?

Question

Today a group called The Third Way (which calls itself left-of-center) released a research report saying that Democrat populism is bogus, and that the US middle class is clearly getting richer and is FAR better off than people have been claiming, with 55% more average income than often cited -- and for the typical family, ZERO credit card debt.

This will NOT make the Europeans happy.

Is this group of left-wing democrats shilling for the evil Republicans or are they correct?

See:
http://www.third-way.com/press/release/32

Meg: your data 1) is 3 years old and so fails to consider the strong real income growth of the last three years; 2) is compromised because it overstates inflation during the period (trust me); 3) ignore the fact that the average number of people per household has fallen during that period; and 4) is not an apples-to-apples comparison of 1-earner families because the constitution of 1-earner families has changed over the 30 years from traditional nuclear family with male bread winner more towards divorcees and younger singles. Surprised you didn't catch those important details. Nice try.

Answer 1

This is true for 2 worker families, and with the increase in the number or working women the median family now has 2 workers. However the median income for families with only one worker has shown almost no increased over the last 30 years, and 30 years ago the median family only had one worker. By picking and choosing which number to compare it is possible to find data that will support almost any statement about income distribution.
see graph at http://www.visualizingeconomics.com/2006/10/29/income-by-number-of-earners/

The trends in income has been going on for the last 30 years, so it is unlikely that any changes that has occurred since 2004 has had a significant effect. The data on problems posed by changing demographics as well as a lot of other information on the income distribution are shown on other graphs at the same site. http://www.visualizingeconomics.com/category/graph/
If you want to compare apples to apples you will find that the income of 2 worker families has gone up only half the amount claimed in the article, and much of that is due to the increase in the wages of working women as they chose higher paying careers.

Answer 2

Could be. What we Americans consider poor is middle to upper middle class in most of the world.

Answer 3

I don't think we really have a middle class. We have a class of peoples who live well at the moment but are only one severe medical disaster away from bankruptcy. With no or inadequate health insurance it takes a severe injury or illness and all is gone.

Answer 4

They are full of cr*p!

EVERYONE I know (middle-class, 25-40) has massive credit card debt. I know no one, who doesn't. While the cost of housing has gone from $200,000 to $400,000 in the last 5 years, a 200% increase (where I live), my wages have only gone up 8%.

These guys sound far left of center, its just propaganda.

Answer 5

thats somewhat sterotypical!