WASHINGTON, April 9, 2008
Middle Class Feeling The Financial Squeeze
Study: More Middle-Class Americans Say They Aren't Better Off Than They Were 5 Years Ago
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(CBS/AP)
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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 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. About one in five 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:
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See all 95 CommentsPosted by enriquecalie
You are probabl correct. You treat both sides of the aisle equally, something few posters are willing to do. Many Democratic and Republican legislators are wealthy and problably remain unfazed by the economic problems facing this country.
Poor yuppies.
BTW, we didn''t lose 80,000 jobs last month. We actually lost 147,000. Distortions, deceptions and lies. http://www.moneyandmarkets.com/Issues.aspx?NewsletterEntryId=1640
Make any sense? Can anybody figure out where all the money is going? Into the hands of the already rich, who have had their taxes slashed since Bush took office.
We are being hosed.
Here are some interesting facts about the economy under Bush:
www.epi.org/content.cfm/bp195
I am so glad you have all this delusional knowledge.
because it is clear in reality JackKnows Nothing, About me or the facts of life. It also seems you can''t read a posting correctly. We were talking about skilled jobs, Try learning fundamental reading skills 101, before you shout your mouth off.
We also need to place tarriffs on foriegn goods. This would influence americans to buy american and whoever dominates the American market is going to have the most money. It is time to let other coutries fend for themselves and take back our country for us.
It amazing how Americans scream about Undocumented Aliens taking jobs such as house cleaning, landscaping, farming, construction, restaurants, janitorial and many others that American do not want.
However, Americans are very quiet when high-pay, high-tech and professional jobs that American do want and need are outsourced and insourced (H1B visas).
Middle Class Americans have no other options but to change your Expensive LifeStyle since the Forces of Capitalism is already lowering your standard of living anyway.
The ultimate solution to this Middle Class Financial Squeeze issue is for Americans to change their expensive LifeStyle. Once Americans make their lifestyle less expensive, then their standard of living should come down. Once their standard of Living comes down, then they can afford to live on a cheap foreign H1B visa worker wage. Once middle class American can live on a cheap H1B worker wages, then there is no Capitalism Forces demanding cheaper foreign workers or outsourcing of our jobs.
So Idiot Middle Class Americans, lower your Standard of Living by changing your Expensive LifeStyle.
Bush has betrayed us with with an illegal war that is costing $10 billion each and every month... http://www.nationalpriorities.org/costofwar_home , a corrupt Federal Reserve that is bailing out the banks and robbing Americans... http://www.courtfool.info/en_Cost_abuse_and_danger_of_the_dollar.htm , http://viewzone.com/pipeline.html , and neocon Zionists with an agenda for world domination...http://www.atimes.com/atimes/Middle_East/JD10Ak04.html , http://therealnews.com/web/index.php?thisdataswitch=0&thisid=1321&thisview=item . If you want the truth, don''t exist our media to help you http://www.lifeaftertheoilcrash.net/ . Inform yourself and be prepared... http://www.youtube.com/watch?v=IOZ4G7080Jc .
It''s not all about managing money properly. You can get to a point where there is simply not enough money to make it on.
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Posted by concorde5 at 12:16
I am not arguing that fact, you are 100% correct.
I am just saying what jobs remain here. More and more American citizens are being forced out by illegals and lower pay.
Second, by simpsonman19
I admire what you are doing, just don''t condemn all others because they are in debt.
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See all 95 Comments