Lunchtime Must-Read: Tahmi Luhby: America’s Middle Class: Poorer than You Think

Tahmi Lubby: America’s Middle Class: Poorer than You Think: “Americans’ average wealth tops $301,000 per adult…

…enough to rank us fourth on the latest Credit Suisse Global Wealth report. But… Americans’ median wealth is a mere $44,900 per adult… only good enough for 19th place, below Japan, Canada, Australia and much of Western Europe. ‘Americans tend to think of their middle class as being the richest in the world, but it turns out, in terms of wealth, they rank fairly low among major industrialized countries,” said Edward Wolff…. Super-rich Americans skew average wealth upwards. The U.S. has… 49% of those with more than $50 million in assets…. This schism secures us the top rank in one net worth measure–wealth inequality…. Americans… are having trouble building wealth because wages have stagnated for more than a decade. Median household income was $51,017 in 2012, compared to $56,080 in 1999…. There are many reasons why middle class incomes are suffering, including the decline of unions’ power, the shift of jobs overseas and the increasing use of technology in the workplace, said Kenneth Thomas, professor of political science at University of Missouri, St. Louis.
Also, Americans have to pay more out of pocket for basics…

Citing: Giles Keating et al. (2013): Credit Suisse Global Wealth Report 2013