Economic Charts

The Middle Class Continue To Shrink, Inflation Crushing People

Updated: Jun 23, 2024 | Published: Jun 23, 2024
Verified Investing
By Verified Investing
The Middle Class Continue To Shrink, Inflation Crushing People

Over the last two decades, those that fall into the middle income bracket are the only group to shrink. The high earnings are gaining and more Americans are falling into the low income bracket.

Why are some making more money and the rest being left behind?

The Federal Reserve has enabled asset markets to inflate. This rewards those that have investments. Just since 2009, the S&P 500 is up 700%. In addition, those that owned a home in 2009 have seen their home value double.

This compares to those that did not have investments (low income) have not made anything, those that did not own a home, have not made anything, all while inflation has surged.

Note that the data set above showing that the upper income bracket has grown 2.5%. This is very misleading because in the last 20 years, inflation has doubled prices, but income has not doubled. So those considered in the upper income are really the new middle class. This means per the stats above, the middle class group is now the low income and the low income is poverty level.

This creates an even greater disparity per the numbers above, with the super wealthy in the upper tier, the upper income is the middle class and everyone below is low income. Scary stuff if this trajectory continues.