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U.S. Middle Class Has Disappeared Into Higher-Income Groups; Recent Stagnation Explained By Changing Household Demographics?

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Over the last few years, I've featured a series of posts analyzing the distribution of US household incomes by the shares of various income categories, see the most recent post here. In those posts, I alternatively calculated the category "middle-income" as: a) $25,000 to $75,000, b) $35,000 to $75,000 and c) $50,000 to $100,000 based on Census Bureau data on household income available here. Regardless of the exact measure of "middle-income," I was able to show that the share of "middle-income" American households has been declining since the mid-1960s - not because more households were falling into a "lower-income" category, but rather because more and more US households were moving into an "upper-income" category.

A recent New York Times article has re-visited this topic, and the article's title reveals their rather pessimistic conclusion that the "Middle Class Shrinks Further as More Fall Out InsteadRead More …