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.

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.

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.

Three broad factors appear to be driving much of the weak income performance in the United States. First, educational attainment in the United States has risen far more slowly than in much of the industrialized world over the last three decades, making it harder for the American economy to maintain its share of highly skilled, well-paying jobs.

A second factor is that companies in the United States economy distribute a smaller share of their bounty to the middle class and poor than similar companies elsewhere. Top executives make substantially more money in the United States than in other wealthy countries. The minimum wage is lower. Labor unions are weaker.

Finally, governments in Canada and Western Europe take more aggressive steps to raise the take-home pay of low- and middle-income households by redistributing income.

Full article here: www.nytimes.com...

Personally, I did not find it much surprise. I believe if certain other factors were considered in, besides the only after-tax income, the difference might be even worse. In most other advanced nations after paying the taxes, there are not significant health costs or university costs to count in, as taxes themselves cover these.

Generally the three main factors seem quite reasonable and are possibly the main reasons for the decline of the middle class.

I hope this is fine posting a comment in the NY Times section. That what I was referring to myself as well. You get what you pay for with your taxes:

After spending a year in Finland I can tell you that we are even worse off here in the US than most American think they are. Taxes on the middle class are not that much higher in other countries than they are here. Only the very rich benefit from our tax system. As the article show incomes are the same or only slightly higher here than in other countries. But when you add the following: subsidized child care, excellent free education including higher education, free high quality health care, great roads, reliable and extensive public transportation you quickly see that life for most people in the US is much much harder than it is in many other countries. After a year abroad our daughter who is 13 now does not want to live here any more and is planning to move out of the US after she finishes high school. If more Americans really understood how badly off they are compared not just to the 1% here but also to the average person in most other countries they would plan to leave too.

a reply to: Cabin

The top 1% control the majority of our money these days.

The really sad thing about the vanishing middle class is that they are the heart and soul of any country, they support everything,

You loose the middle class who pays for it all ????????

Its odd but the very people that are in support of this administration and its destruction of the work force are the first that will loose there free ride...just like Greece.

a reply to: Battleline

Who needs the middle classes or any class for that matter when our government aka Illuminati overlords love us and only have our best interests at heart. LoL

My heart bleeds for them it really does

Said it before and I'll say it again, screw the debt ceiling, we want a wealth ceiling on the 1% and the middle class

Immigrants.. Supply and Demand in the labor pool. More poor people needing work = larger supply/lower pay

Less people fighting for jobs = more pay and better bargaining power.

if the immigrants were not in the US, the pay and lifestyle for everyone from lower middle class on down would be much HIGHER.. undeniable

originally posted by: HanzHenry
Immigrants.. Supply and Demand in the labor pool. More poor people needing work = larger supply/lower pay

Less people fighting for jobs = more pay and better bargaining power.

if the immigrants were not in the US, the pay and lifestyle for everyone from lower middle class on down would be much HIGHER.. undeniable

Percentage of Population Foreign Born (Immigrants):

USA: 14.3 %
Canada: 20.7%

Damn those immigrants!

ive lived close to 40% of my adult life abroad...and every time I return to the usa I think wtf am I doing here..its so frustrating attempting to talk with my fellow Americans about some things Ive seen abroad. They immediately dismiss it as im anti American or I dont know what im talking about. Even my own mother will say things that are totally wrong regarding America.

When I tell people things like..wouldn't you enjoy free or very cheap ...health care...school...college...day care...maternity leave...they always respond..."well what are the taxes like?"...they are high indeed...but when you compare the difference from our taxes to theirs..they arent that different!

We spend so much on taxes in America and I dont see what they are doing with it...in fact I noticed the same stretch of highway 3 of the last 10 years has been worked on...I swear to the lord above they are working on this road between certain mile markers every 3 years....what flipping road needs to be worked on every 3 years..and the worst part is..there is a type of road that will last a very very long time that they wont use cause it woudl basically put everyone out of the job.

a reply to: HanzHenry

The amount of immigrants is pretty high in most advanced nations, roughly 10-16%. US has similar amount of immigrants to other advanced nations, yet the middle class is weakening. Clearly the immigrants are not the main problem.

en.wikipedia.org...

Stop blaming immigrants for the woes of your country, it's illogical short-sightedness.

You want to know what the difference is between the USA and all the other 1st world countries ?

Two words: Military budget

This is why every other 1st world nation manages to get a "better bang for their buck" in terms of standard of living for their poor and middle class citizens despite the fact that they pay higher tax rates.



Yes folks, it's that plain and simple.

You guys just do not get. The oligarch system does not have a middle class. It took 20yrs but that economic level is gone. Now they will have to go to what use to be the upper middle class to pay their taxes do their bidding.

a reply to: CranialSponge

Lol, nah Americans blame two things Immigrants but most of all Socialisme; socialists are the new commies lol.

In Europe we have social economical welfare, that pillar of our government is the most important, even though there has been a decline much because of the European union.

This socialism we have in Europe is what gives us this overal cheap living costs. But in America socialisme is a bad word.

Obama can sit back, smile, and say, "My job is done!"

2nd

originally posted by: MOMof3
You guys just do not get. The oligarch system does not have a middle class. It took 20yrs but that economic level is gone. Now they will have to go to what use to be the upper middle class to pay their taxes do their bidding.

right, the oligarchs system in simple terms means 1/5 of the middle class moves up the ladder, and 4/5 of us move far down.

those 1/5 will pompously preach how they are better and deserving, and self back slap for having been in front of a chair when the music stopped.

a reply to: HanzHenry

Why is this such a shock to people?

We've been saying for years that the government will screw people over!

NOW people are shocked that it's actually happening?????

a reply to: HanzHenry

Actually, I feel sorry for those who have been in the upper middle class. I think they truly worked to get there, not born there. I almost made it til my husband got sick and disabled. I don't need lots of money now. But I was hoping my grandchildren would make it. They won't even be able to go to college.

originally posted by: peck420

originally posted by: HanzHenry
Immigrants.. Supply and Demand in the labor pool. More poor people needing work = larger supply/lower pay

Less people fighting for jobs = more pay and better bargaining power.

if the immigrants were not in the US, the pay and lifestyle for everyone from lower middle class on down would be much HIGHER.. undeniable

Percentage of Population Foreign Born (Immigrants):

USA: 14.3 %
Canada: 20.7%

Damn those immigrants!

wrong pal, all those illegals DIRECTLY lower the wage scale. I am an engineer, was an electrician and LIVED it.

The employers are paying them OFF THE BOOKS to avoid the taxes, workers comp, unemployment, etc. And since the workers are invisible, the working conditions, overtime laws, etc. are skirted.

AND, the illegals can afford to do the pay for less because they are invisible, and the welfare fraud their anchor baby momma's get is safe and sound. I worked on the jobsite with illegals that got EVERY welfare benefit in their household, and were better off at $12/hr due to it than we were at $22/hr.

SUPPLY and DEMAND.. FFS

more workers = LESS bargaining power and LOWER pay.. can you HONESTLY DENY THAT?

a reply to: HanzHenry

Were the illegals allowed to join your union?

They would not even think about the Laborers Union my husband was in for 40 yrs. Had to read and write english and join the union. Illegals hate unions.

originally posted by: Cabin
a reply to: HanzHenry

The amount of immigrants is pretty high in most advanced nations, roughly 10-16%. US has similar amount of immigrants to other advanced nations, yet the middle class is weakening. Clearly the immigrants are not the main problem.

en.wikipedia.org...

An immigrant doctor is not the same as an immigrant factory worker or fruit harvester.
An immigrant who owns and runs their own business, is not the same as one who uses social services..

Were talking about 2 very different types of immigrants. Now i'm not blaming anyone but the crooks in the gov. who allow this to happen, open border, war on drugs, ect..

Try being an American and move to china, coming from nothing, with nothing, they have so many workers, they can choose to pay most of them next to nothing, to where, if they didn't have all those 'dumb non-dr. cogs' in the wheel it would stop spinning.

Also American middle class are paying for europes poorer and lower income people to live better, as we spend ALL the money having to protect not just america, but them too...

a reply to: starfoxxx


there are factories in central Ilinois that were bought out by multi national corps. They bus in illegals, lodge them at those old ran down motels (the bates motel types), and split the factories into an American side and an immigrant side. Only the forklift operators go back and forth.

I know because of family there, I worked at one for awhile while in college between military stints. There are no more jobs for people there, the only americans are the ones that have been there for over a decade. They are being whittled away too, some laid off here and there.

Jobs that paid $20/hr in the 90's with a starting pay of $13/hr in the late 80's. That pay has not gone up since then. The illegals are making $9-11/hr and get EBT cards when they have an anchor baby. The mothers have multiple last names due to their culture so they choose one to out down. And they live rent free in the motels!

Imagine, starting pay in 1988 was $13/hr: house was $30,000; new car $15,000, gas $0.89/gal, groceries $150/mo etc,

if the immigrants WERE NOT ACTING as strike busting scabs, the corps would HAVE TO pay Americans more to do the job, or the work would not get done.

Just like in the fields. The Farmer is at the MERCY of those that pick the food. Either the farmer pays a decent wage or the food rots on the vine. The farmer WILL PAY what the workers require IF there wasn't some other group willing to do it for LESS