The Real Story: Stagnation of the Middle Class Amid Income Inequality
The Stagnation of the Middle Class
A focus on the poles of income distribution distracts from the real story: the stagnation of the middle over the last 50 years. While both the bottom and top percentile earners have seen some changes, the median earners have shown minimal income growth.
Income Distribution Analysis
- Bottom 20 Percent: Government transfers have narrowed the gap with the middle class.
- Top 1 Percent: Estimates may overstate income share growth, affecting inequality perception.
The long-standing issues of gender and racial income disparities further emphasize the need for deeper economic and societal considerations.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.