A crushing blow to male earnings – The slow decline of the American Middle Class
The contraction of the US middle class continues to roll along. There are major generational rifts that are hitting the economy. For example between 1960 and 2009 the number of men working fulltime has fallen from 83 percent to 66 percent. A large number of people are categorized under “not making formal wages” and this group has tripled from 6 percent to 18 percent. It is a troubling revelation that provides more insight into the reality that half of Americans make $25,000 or less per year. It also sheds some light on the massive number of working poor that are also part of the 46 million Americans now receiving food assistance. The decline in wages is real and the massive impact in net worth is also a big indicator of the crushing blow being experienced by the middle class. The demographics of the workforce Part of the decline is attributed simply to the transition of our workforce:
Source: Washington Post The demographics of the workforce have dramatically changed over time but this only explains part of the issue. If we look at the earnings of men we realize what the dismantling of the blue collar workforce has done to our economy. It is a troubling revelation to see that earnings for men have fallen a stunning 28 percent in 2009 dollars from their spot in 1969:
It is amazing to realize how deep the recession has cut into the wages of working men. Yet this is not a new phenomenon. As you can see from the chart above, the problems started in the 1970s as the manufacturing sector of our economy was gutted. There are two sides to the story when you chase after low wage goods. You typically will find that low wage jobs will also be part of the equation.
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