Income Polarization/ the Shrinking Middle Class

Income Polarization/ the Shrinking Middle Class
Author: Basso Lee
Publisher: LAP Lambert Academic Publishing
Total Pages: 224
Release: 2010-02
Genre:
ISBN: 9783838340098

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Over the last thirty years the American economy has changed in fundamental ways. Instead of the security and egalitarian economic gains foretold by the postwar era, income inequality and job insecurity have increased. Increasingly fluid, global borders are eroding the social pact between capital and labor and the move away from manufacturing and toward services employment produces jobs that provide vastly less security and benefits for a great many workers. In short, America is moving toward a new and postindustrial economy. Many people thrive in this new economy and many more are left fearful. But we know little about how this transformation will play out in the political arena.The individual-level anxiety accompanying America s transition to a postindustrial, globalized economy has not been explored in any systematic way. What is the nature of the relationship between perceptions of the postindustrial economy and political beliefs and opinions? It is to this question that this dissertation speaks.

AMERICA'S SHRINKING MIDDLE CLASS

AMERICA'S SHRINKING MIDDLE CLASS
Author: VAHAB AGHAI, Ph.D.
Publisher: Author House
Total Pages: 341
Release: 2014-08-29
Genre: Political Science
ISBN: 1491870761

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What does a middle class nation do without a middle class? An abundance of evidence suggests that we here in the United States are about to find out. America's Shrinking Middle Class documents trends that have been building not just since the Great Recession, but for over four decades. In 1970, the share of U.S. income that went to the middle class was 62 percent. By 2010 that figure had fallen to 45 percent. In that same year, the median income for middle class Americans had gone from $72,956 to $69,487 a decline of nearly 5 percent in just one year. A shrinking middle class would mean a shrinking economy and an America dominated by a growing lower class. Life would be less comfortable, less prosperous, and less secure. With less money coming in to government and businesses alike, tax burdens would become onerous. One example: Obamacare. It could cost the average taxpayer nearly $6,000 in extra taxes and create a total of 20 new taxes or tax hikes. For a weakened and shrinking middle class, it could be a fatal blow.

Income Polarization in the United States

Income Polarization in the United States
Author: Ali Alichi
Publisher: International Monetary Fund
Total Pages: 36
Release: 2016-06-28
Genre: Business & Economics
ISBN: 1475522568

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The paper uses a combination of micro-level datasets to document the rise of income polarization—what some have referred to as the “hollowing out” of the income distribution—in the United States, since the 1970s. While in the initial decades more middle-income households moved up, rather than down, the income ladder, since the turn of the current century, most of polarization has been towards lower incomes. This result is striking and in contrast with findings of other recent contributions. In addition, the paper finds evidence that, after conditioning on income and household characteristics, the marginal propensity to consume from permanent changes in income has somewhat fallen in recent years. We assess the potential impacts of these trends on private consumption. During 1998-2013, the rise in income polarization and lower marginal propensity to consume have suppressed the level of real consumption at the aggregate level, by about 31⁄2 percent—equivalent to more than one year of consumption.

The Shrinking Middle Class

The Shrinking Middle Class
Author: Emanuel Collado
Publisher: iUniverse
Total Pages: 125
Release: 2010-03-22
Genre: Business & Economics
ISBN: 1450219675

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The middle class of our society has an important roleacting as the glue that holds the upper and lower classes together. But what will happen if the middle class crumbles? The Shrinking Middle Class is a comprehensive study of the economic meltdown and its long-term effects on the middle class. Emanuel Collado is a self-made businessman who focuses the results of his extensive research into a trend first detected in the 1980s. He provides fascinating case studies of middle class families, alarming statistics, and causes of the current economic crisis that both the United States and the world face. As Collado compares past decisions with current issues, he offers explanations for why America has such a disparity in our society and where the social fabric is being skewed to expand at both ends and grow thinner in the middle. Not so long ago, being middle class meant a reliable job with good pay, a home, access to health care, good education for youth, and a dignified retired life. Collado provides an in-depth look into why the United States is becoming a two-class society and what we can do now to prevent it from happening.

Income Polarization in the United States

Income Polarization in the United States
Author: Ali Alichi
Publisher: International Monetary Fund
Total Pages: 36
Release: 2016-06-28
Genre: Business & Economics
ISBN: 1475522509

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The paper uses a combination of micro-level datasets to document the rise of income polarization—what some have referred to as the “hollowing out” of the income distribution—in the United States, since the 1970s. While in the initial decades more middle-income households moved up, rather than down, the income ladder, since the turn of the current century, most of polarization has been towards lower incomes. This result is striking and in contrast with findings of other recent contributions. In addition, the paper finds evidence that, after conditioning on income and household characteristics, the marginal propensity to consume from permanent changes in income has somewhat fallen in recent years. We assess the potential impacts of these trends on private consumption. During 1998-2013, the rise in income polarization and lower marginal propensity to consume have suppressed the level of real consumption at the aggregate level, by about 31⁄2 percent—equivalent to more than one year of consumption.

Hollowing Out: The Channels of Income Polarization in the United States

Hollowing Out: The Channels of Income Polarization in the United States
Author: Ali Alichi
Publisher: International Monetary Fund
Total Pages: 66
Release: 2017-11-15
Genre: Business & Economics
ISBN: 1484328299

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Data show that middle-income households have continued moving down, and less so up, the income distribution in the United States since the 1970s—a phenomenon that is often referred to as the polarization or “hollowing out” of the income distribution. While the level of income polarization is generally lower in the richer states (i.e., those with higher median household income levels), there have been wide variations in the changes in income polarization over time across states. The paper develops two indices to measure income polarization including a novel hollowing-out index. Another important contribution of the paper is to examine the proximate causes of income polarization. The econometric analysis is done at both state and household levels. The results suggest that technology, measured by job routinization, and international trade, measured by job offshoring, can fully explain the non-trend rise in income polarization, with broadly equal contributions. Household characteristics, including age, education, race, and gender have also been important drivers but with a net countervailing effect on income polarization. This is mainly thanks to the rising education level of households, which has led to better incomes.

The Middle Class Consensus and Economic Development

The Middle Class Consensus and Economic Development
Author: William Easterly
Publisher: World Bank Publications
Total Pages: 48
Release: 2000
Genre: Capital humano
ISBN:

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A higher share of income for the middle class and lower ethnic polarization are empirically associated with higher income, higher growth, more education, better health, better infrastructure, better economic policies, less political instability, less civil war (putting ethnic minorities at risk), more social "modernization," and more democracy.

Income Inequality

Income Inequality
Author: Janet C. Gornick
Publisher: Stanford University Press
Total Pages: 541
Release: 2014-08-01
Genre: Social Science
ISBN: 0804786755

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This state-of-the-art volume presents comparative, empirical research on a topic that has long preoccupied scholars, politicians, and everyday citizens: economic inequality. While income and wealth inequality across all populations is the primary focus, the contributions to this book pay special attention to the middle class, a segment often not addressed in inequality literature. Written by leading scholars in the field of economic inequality, all 17 chapters draw on microdata from the databases of LIS, an esteemed cross-national data center based in Luxembourg. Using LIS data to structure a comparative approach, the contributors paint a complex portrait of inequality across affluent countries at the beginning of the 21st century. The volume also trail-blazes new research into inequality in countries newly entering the LIS databases, including Japan, Iceland, India, and South Africa.

The Coming Class War and How to Avoid It

The Coming Class War and How to Avoid It
Author: Frederick R. Strobel
Publisher: M.E. Sharpe
Total Pages: 232
Release: 1999-05-07
Genre: Business & Economics
ISBN: 9780765638526

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Strobel and Peterson offer a clear, accessible analysis of the worsening distribution of income and wealth in America. In addressing the decline of the middle class, the authors determine that the middle class has not only continued to shrink, but that the majority of economic benefits have become concentrated into fewer and fewer hands. There is a close analysis of the linkage between economic and political power, as well as the increasing inability of the growing lower and shrinking middle classes to voice their economic views in Washington. The result is a uniquely American form of class conflict, which adds to our historic racial tension, and new clashes along gender and generational lines. Widening income disparities further split society. Single issue politics often emerge as a refuge for those voters unwilling or unable to deal with these complicated and seemingly insoluble issues. To prevent further class conflict in the coming quarter century, the authors outline strategic changes in policy, including a plan to strengthen social security. Anyone with an interest in current economic issues and problems will find this book helpful in understanding how the worsening income and wealth distribution came about, the consequences inherent in this situation, and suggestions for the future. Frederick R. Strobel is the William G. and Marie Selby Professor of Economics at the New College of the University of South Florida in Sarasota. This is his second book on middle class decline. He has written numerous articles on economics and economic policy, which have appeared in a wide variety of business and professional journals, including Business Week, Chicago Tribune, and American Banker. Wallace C. Peterson is the George Homes Professor of Economics Emeritus at the University of Nebraska in Lincoln. This is also his second book on middle class decline. He is the author of many other works on economic policy, including the award-winning newspaper column Money in America. He is the past president of several academic associations, including the Midwest Economics Association, the Association for Evolutionary Economics, and the Association for Social Economics.

The Shrinking American Middle Class

The Shrinking American Middle Class
Author: Joseph Dillon Davey
Publisher: Springer
Total Pages: 197
Release: 2012-09-14
Genre: Business & Economics
ISBN: 1137295074

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The United States lost one third of its factory jobs in the past decade as jobs were outsourced offshore, mostly to Asia. Jobs that require a college degree are next to go. China will award six times as many degrees this year as they did ten years ago and any job that can be digitized will be 'tradable'. Estimates of the number of vulnerable jobs range from a low 11 million to a staggering 56 million 'middle class' jobs. The median United States household income has already dropped by seven percent since 2000 and without dramatic changes in the American workforce that trend will become a disaster for middle class Americans.