*from www.money.cnn.com, Mar. 5, 2013 (To view original article click here.)
Take Away #1: Middle-class people are being pinched by stagnating incomes and increased cost of living.
Key Facts and Figures:
- America’s median household income dropped more than $4000 since 2000, after adjusting for inflation.
- Families are struggling to afford childcare and save for costs of college, which continue to climb.
- Elimination of the payroll tax break has shrunk paychecks for middle class.
Take Away #2: Economists say it boils down to two core problems: jobs and wages. The traditional “middle-class job” is disappearing.
Key Facts and Figures:
- Mid-wage occupations like office managers and truck driver accounted for 60% of job losses during the recession, but only 22% of the gains during the recovery.
- Low-wage positions by contrast have soared 58%.
Take Away #3: Middle class weighed down by uncertainty and insecurity and optimism for the future wanes.
Key Facts and Figures:
- More than 40% of those surveyed in a recent Rutgers university study said they were “very concerned” about job security.
- Fewer than one-third believe economic conditions will improve next year, and an equal number think they will get worse.
- Only 19% believe that job, career, and employment opportunities will be better for the next generation.
Take Away #4: Economists say they don’t expect much improvement for the middle class any time soon.
Key Facts and Figures:
- Many cite lack of full-time employment, the downturn in the housing market, and healthcare costs as major issues.
- While the recession is officially over, the recovery is fragile and gains aren’t evenly spread.
- Between 1993 and 2011, the top 1% of America’s earners saw their income soar by 58% while everyone else only got a 6% bump.
*To view original article from www.money.cnn.com click here.