Posted on 04/09/2008 5:03:37 PM PDT by AndyJackson
Study: Middle-Class Americans Increasingly Downbeat About Their Short-Term Economic Progress
WASHINGTON (AP) -- More and more middle-class Americans say they aren't better off than they were five years ago, reflecting economic pressures amid growing personal debt, a study released Wednesday found.
Their short-term assessment of personal progress, according to the study, is the worst it's been in nearly half a century.
The survey by the Pew Research Center, a Washington-based organization, paints a mixed picture for the 53 percent of adults in the country who define themselves as "middle class," with household incomes ranging from below $40,000 to more than $100,000.
It found that a majority of all Americans said they haven't progressed in the last five years. One in four, or 25 percent, said their economic situation had not improved, while 31 percent said they had fallen backward. Those numbers together are the highest since the survey question was first asked in 1964. Among the middle class, 54 percent said they had made no progress (26 percent) or fallen back (28 percent).
Asked about their financial experiences in the past year, 53 percent of middle-class people said they had to cut spending because money was tight. Nearly one in five, or 18 percent, said they had trouble getting or paying for medical care, while 10 percent reported they had been laid off or otherwise lost their jobs.
Looking ahead to the coming year, half of the middle class surveyed said they expected to have to cut more spending. Among those employed, one in four, or 25 percent, expressed worries that they would be laid off, that their job would be outsourced or that their employer would relocate in the coming year, while 26 percent were concerned that they would see cuts in salary or health benefits.
Middle-class prosperity overall also lagged compared with richer Americans. From 1983 to 2004, the median net worth of upper-income families -- defined as households with annual incomes above 150 percent of the median -- grew by 123 percent, while the median net worth of middle-income families rose by just 29 percent.
At the same time, most middle-class people remained upbeat when asked to measure their progress over a longer timeframe, although their level of optimism lagged behind their richer counterparts. Two-thirds, or 67 percent, of middle-class Americans say their standard of living is better than the one their parents enjoyed at the age they are now.
In contrast, 80 percent of richer people said they exceeded their parents' standard of living. Among the lower class, only 49 percent reported better conditions.
"It's been a lousy run for the American economy and people feel it," said Paul Taylor, director of Pew's Social & Demographic Trends project and lead author of the study. He noted that people's pessimism largely tracks annual median household income, which has seen little gain in recent years. Middle-class people also may be disproportionately feeling the pinch because they tend to borrow more heavily against their homes to support their lifestyles, Taylor said.
"Still, over a span of a generation, it's been a pretty good run, even as there are some recent pressures that I think people are feeling," he said.
The Pew poll involved telephone interviews with 2,413 adults, conducted from Jan. 24 to Feb. 19. The margin of sampling error was 2.5 percentage points.
Among the other findings:
--Nearly eight in 10 of all people, or 79 percent, said they believe it has become more difficult compared with five years ago for the middle class to maintain their standard of living, up from 65 percent in 1986.
--Among the middle class, no consensus existed on who was to blame for their economic problems. Twenty-six percent blamed the government, 15 percent faulted the price of oil and 11 percent said the people themselves were responsible. Others faulted foreign competition and private corporations for economic woes.
--Politically, 58 percent of middle-class Americans said they believed the GOP favors the rich, while nearly two-thirds say the Democratic Party favors the middle class (39 percent) or the poor (26 percent).
--Some demographic groups have improved their income status between 1970 and 2006, while others saw declines. Among the winners were seniors ages 65 and older, blacks, native-born Hispanics and married adults. Losers included young adults (ages 18 to 29), the unmarried, foreign-born Hispanics and people with a high-school education or less.
Pew Research Center: http://pewsocialtrends.org/
Here's hoping that you bounce back real soon.
That’s okay Lauren. He deserves support from folks who agree with him. You take care.
If workers ask for a decent wage {not an outrageous one} it's called greed. If corporations close up and move to China they are called good for our nation and praised by fools that think of themselves as are economic gurus. If CEO running the companies doing this draw millions in yearly salaries they too are called good. The displaced workers by the so called economy gurus are told hope you find another trade.
It's funny some will call those sounding the alarm Marxist yet they themselves will help enable and even kiss the feet of the Communist government of China for providing what amounts to slave labor or the corrupt one of Mexico send illegals here for our jobs as fast as our factories are closing down.
And will crash by February 1, 2009, from their tax hikes and new laws.
LOL, can’t argue with that logic.
No; it’s the enviro-nazis that don’t allow us to build new refineries, drill offshore and in Alaska, etc. Won’t let us cut trees for wood. And the idiots that let them dictate our policies in BOTH PARTIES.
Condensed version:
Life is hard. Waaaaaaaaaaahhhhhhhhhhhhhhhhhh!!!!!!!
Nicely said. I think a lot of us here share those thoughts.
I'm a couple years older than that and as far as I can see, the definition of "middle class" is not what it used to be.
Middle class once meant; every 2 kids of same gender share a bedroom. Used cars, or buy a new plain-Jane Ford/Chevy and keep it till it's ready to drop. One land line phone in the house. Meat loaf for dinner, peanut butter for lunch, eating out is for birthdays and holidays. Pay off the mortgage early and invite the neighbors over to celebrate when you "burn the mortgage". Cash=wealth.
Middle class now means; little Dylan, Britney, Tristan, and Hayley each have their own 300 square foot suite with private bath and plasma. Lease a new BMW/Hummer/Volvo every three years, and don't forget the time payments on that bass boat and the Harley. Everyone has their own cell phone including little Emma in pre-school. Prepackaged dinners and dinner at a restaurant three days a week. Invite the neighbors over to celebrate when you take out a new home equity loan to build a pool or add a new garage filled with ATV's and jet skis. Debt=wealth.
Learn to live under definition (1) above and you'll be fine.....
The media has accurately predicted 36 of the last 2 recessions. (I think, paraphrased from Zig Ziglar.)
I read a stat that said over 40% of Americans spend more than they earn!
You can’t live like that for long!
The 8th commandment isn’t in place to keep your neighbor’s ass safe from your greed.
It’s to protect YOU.
I love the short statement that reveals a mountain of truth.
Very good.
Not to change the subject, althought it will, this is how I see the McCain suggestions that we needed to take another course in Iraq a year and a half ago.
You criticize enough times, and you’re going to be absolutely right once in a while.
A appreciate the comment. Very good.
Guaranteed financial peace:
1) spend less than you earn
2) avoid debt
3) build in liquidity (savings)
4) have a long term plan
5) Remember you’re just taking care of what God allows you to
I agree and I think it is a blast being wierd!
You’re a Marxist. Everybody in my graduating class is already retired or dead.
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