In America, the middle class has shrunk by 11% since 1970's; however, the upper class grew by 7% and lower by 4%.
Your numbers are accurate, Anti, but we have to take a look at the methodology, because statistics can be used to prove pretty much anything.
So, let's take a look at context and precise framing of the research that arrived at these numbers.
It defines middle mass as those earning between two-thirds and twice the U.S. median household income, and upper class as those earning more than roughly double the median; such definition seems dubious to me because, in Polish realities, it would put me comfortably in the upper class which is, frankly, ridiculous, and I don't think this definition works in the US either. Here's why...
- median household income today is higher than in the 1970s, but not by a margin that offsets rising costs in key categories;
- the most important categories have outpaced income growth:
-- housing prices grew far faster than wages
-- healthcare, much faster
-- higher education, explosive growth
-- childcare and health insurance also saw very large increases.
These are
non-optional expenses (well, maybe with the exception of higher education) which means that these days households struggle more with foundational costs. Therefore, even some of those who - according to the research you cited - are in the "upper class" today can afford significantly less when it comes to foundational costs than "middle class" members in 1970s. And that's
after 50 years of liberal capitalism, which we are told is supposed to increase the financial well-being of societies!
So, to sum up - in the US since 1970s, we've had a growing lower class (by about 4%), a hollowed-out middle (by 11%), with much less financial buffer than its 1970s counterpart, and 7% growth in the so-called "upper class" which - in the adopted methodology - consists in significant part of people who can afford
less than middle class members in 1970s could (after half a century of capitalism!).
If this is happening in the richest country of the world and the centre of world liberal capitalism, then it means something is fundamentally wrong with the system.