The problem with that politicalchic is that it shows the middle class vanishing ... The fact that it's evolving into the lower end of 'wealthy' not withstanding
If the poor don't lift themselves up, then yes, those that are willing to do the work to succeed will continue to pull further and further ahead of the couch potatoe crowd
Nonsense. You've got blinders on, Firehorse.
1. Mathematics is a factor in understanding the economy, as well: one must understand that
any average, or mean, of incomes in the top 20% will always be much higher than the median income in this group, for the simple reason that the top group has no ceiling…i.e., it is everyone with incomes above the 80% percentile. Of course, this description can be applied to any “top” group…1%, 5%, etc.
a. The median will consequently always provide a much more accurate reflection of the typical income earner in any top income group than any average or mean. So, changes in the “average” incomes of a top group are always misleading, and greatly exaggerates the level of typical income of top income groups.
b. “Mean income for the top 10% is about two-thirds larger than median income…” Reynolds, “Income and Wealth,” p. 21.
c. According to Federal Reserve data regarding incomes of different subgroups, the average or mean income of the top 10% households seems to increase much more from 1989 to 2004 than the average or mean of the next highest 10%, or of any lower income group. This would lead one to believe, mistakenly, that income inequality is growing, with the rich getting rich faster than any other group.
But when the more accurate median income is considered,
the income of the top 10% grew virtually at the same rate from 1989 to 2004 as the bottom 20%, and as the second lowest 20%. Reynolds, “Income and Wealth,” p. 20-21.
2. The statistical illusion known as ‘the vanishing middle class’ is produced by defining the middle class by some fixed interval of income.- say, between $35k and $50k- and then by counting the number of individuals are in that interval over the years. The fallacy fails to note that the incomes of Americans have been rising over the years. So, as the statistical distribution of folks shifts to the right, the number of folks in the original income bracket, declines- contrary to the waves of journalistic and political rhetoric.
Sowell, 'Economic Facts and Fallacies,' chapter five.
3. Over the decades, the percentage of American families with incomes over $75k has tripled. Alan Reynolds, “Income and Wealth,” p. 49.