According to a survey released August 22, 2012, by the Pew Research Center, the median income for the middle class in the U.S. decreased from $72,956 to $69,487 since 2000. In fact, for the first time since World War II, “mean family incomes declined for Americans in all income tiers” with the percentage of Americans who fit into the new normal of the middle class dropping from 61 percent in 1971 to 51 percent in 2011. “Since 2000, due to the decrease in income and wealth, the middle class lost much of its characteristic faith in the future.”
What is more telling is who is included in the middle class, which the report defines as those with incomes between $39,000 and $118,000. In the survey, 49 percent described themselves as middle class, however, the survey illustrates that 32 percent “self-identify themselves as being in the lower or lower-middle class, up from 28 percent in 2008.” And those who self-identify in the upper to upper-middle class dropped from 21 percent in 2008 to 17 percent today.
Among the noteworthy patterns divided by race, age, and gender, “Similar shares of whites (51 percent,) blacks (48 percent,) and Hispanics (47 percent) describe themselves as middle class, despite government data that shows whites have a higher median income and much more wealth than blacks or Hispanics.”
The Pew survey compared America’s rising income inequality to countries like Pakistan, while a 2010 Census Bureau study found incomes for those in the bottom tier fell four times faster than weathered by the wealthiest after the “Great Recession,” according to the National Bureau of Economic Research, which began in December 2007 and ended in June 2009.
Interestingly, Pew found that those who suffered most during the recession - young adults ages 18 to 24, blacks and Hispanics – who see their long-term economic future optimistically (67 percent) in comparison to 52 percent of older adults, and blacks (78 percent) and Hispanics ( 67 percent) were more optimistic than whites (48 percent.)
As the 2012 Presidential candidates court the middle class for votes, these results could significantly affect the election. Statistically, 85 percent say it is more difficult to maintain their standard of living, 62 percent blame Congress, 54 percent blame banks and financial institutions, 47 percent blame corporations, 44 percent blame the Bush administration, and 34 percent blame the Obama administration. As expected, a sizable partisan gap exists as to whether to blame large corporations (Democrats 59 percent vs. Republicans 27 percent) and financial institutions (Democrats 62 percent vs. Republicans 40 percent). “However, similar majorities of both groups blame Congress (Democrats 63 percent and Republicans 58 percent,)” according to the report. “As is true of the population overall, more members of the middle class identify with or lean toward the Democratic Party (50 percent) than with the Republican Party (39 percent), and 11 percent declining to take sides.”