While most Americans continue to identify as “middle class,” the numbers tell a different story. According to a recent Pew study, the percentage of middle class households has shrunk in all 50 states since 2000.
Via Yahoo! News:
A recent analysis from Pew Charitable Trusts’ Stateline blog found that the middle class shrunk in every state in the US between the years of 2000 and 2013 (the most recent data available).
“Middle class” is a tricky concept. Depending on where you live, you can feel middle class earning as much as $250,000 a year — about five times the US median income of $52,250 from the same time period.
In this analysis, Pew defined middle class households as those earning 67%-200% of a state’s median income. So … how much is that?
Below, we took the median income numbers from the US Census Bureau’s 2013 American Community Survey, which Pew used in its analysis and which we’ve listed in the leftmost column. Then, we did the math to figure out how much middle-class earners make in each state, based on Pew’s definition above. The states are listed in descending order based on median income.
Further explanation of these numbers is provided by Business Insider:
According to the Pew Charitable Trust, middle class means earning anywhere between 67% to 200% of your state’s median income.
The Pew Charitable Trust’s Stateline blog recently published a study which looks at how the number of middle class families in America has changed between the years of 2000-2013.
The study found that the percentage of middle class households (as defined above) has shrunk in all 50 states since 2000.
This is especially significant since the median income has also dropped in most states, due to adjustment for inflation.
Does this confirm what you already suspected about the shrinking American economy? Where does your state rank?