We all know (or should know) this story in its broad outlines. But this piece, “The Death of the Great American Middle Class”, found on Steve Keen’s DebtWatch site has some details that are worth reviewing and sharing.
A good indicator of the strength of the middle class in a country is the proportion of all the income in that country that goes to the Middle Sixty. For example, one problem in Mexico is the lack of a strong middle class. In Mexico, the Middle Sixty take home just 46.6% of Mexico’s income, even though they make up 60% of Mexico’s households. In Mexico, so much of the nation’s income goes to the Top Twenty that there’s very little left for the Middle Sixty, or for the poor.
The amazing thing is, by this measure even Mexico has a stronger middle class than the United States. The Middle Sixty in America take home just 46.3% of America’s income. This is by far the lowest figure of any major developed country.