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Posts Tagged ‘blue collar jobs decline’

The Pew Research Center recently published a report called “The American Middle Class is losing ground.” They cite data from the U.S. Census Bureau and the Federal Reserve Board of Governors to determine household incomes to suggest the Americans who once made up the majority of hardworking, moderate income Americans comprise now less than half the adult population.

Share of adults living in middle-income households is falling

Approximately 120.8 million American adults are considered “middle class”, which Pew defines as their income is 50-66% the media income based on household size.

Who is “middle income” and “upper income”?

 

These findings emerge from a new Pew Research Center analysis of data from the U.S. Census Bureau and the Federal Reserve Board of Governors. In this study, which examines the changing size, demographic composition and economic fortunes of the American middle class, “middle-income” Americans are defined as adults whose annual household income is two-thirds to double the national median, about $42,000 to $126,000 annually in 2014 dollars for a household of three.3 Under this definition, the middle class made up 50% of the U.S. adult population in 2015, down from 61% in 1971.

Basically what’s happened is that those who once comprised the solid middle class of Americans- people who made enough to live comfortably but not enough to live luxuriously- had eroded. An increasing number of people either move into the top 10% (often known as the ‘professional’ class due to the high number of post-graduate degrees this group has earned) or into the bottom 30%, the ‘working poor’, families struggling to pay for even the most basic of expenses.

Older people, married couples and black adults improved their income status more than other groups from 1971 to 2015

 

 

 

 

 

 

 

 

Black adults, many of whom start with little or nothing, have gained because the number who were well-to-do in 1971 was very small. Those with less than a bachelor’s degree have been hurt economically, as have younger adults and the unmarried (many of whom are young). Older, married White couples are the most likely to do well, though not having children has helped some married couples.

Predicting the future is tough, but the data suggests America already is a class-based system, and will become even more so as the earnings between college graduates (particularly those with a master’s or doctorate or equivelant) increase much faster than those near the bottom (fast-food workers, construction workers, those whose jobs can be more easily replaced via computer or immigration) can keep up, which will widen income inequality. The Minimum Wage argument will actually serve to hasten this gap, as business owners obtain the means and desire to replace so-called ‘low-skilled’ workers with automation.

The positive is that the number of ‘upper middle’ and ‘highest’ has grown as a percentage, which suggests that for some there is economic mobility that was not present in 1971.

What do you think? What does the data suggest about American earnings and our future?

 

 

 

 

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image: innotribe.wordpress.com.

We published a podcast and a new article featuring CRI Policy Director Dave Stevenson where he criticized the EPA and DNREC for their continued efforts to enforce their unneeded regulations on Delaware residents and business owners of large industrial factories.

DNREC is another example of a government agency which exists primarily to exist. Right now they alternate between: warning of the dangers of Sea Level Rise with Apocalyptic warnings that most of Delaware will be underwater within 85 years (really 45 just to get the ball rolling) unless we “do something”. And the “something” ALWAYS is more government regulation over our lives; and creating new regulations so those who work there making regulations can assure the public they are, in fact, working.

It’s for this reason DNREC will not be pleased if you knew that we as a state have met all our EPA air quality requirements for 2030, and it’s only 2015. Due to a mixture of government regulation over pollutants, a switch from coal to natural gas and in some places nuclear power, and new innovations in technology which reduce pollutants produced, we have succeeded in making our air clean and safe to breath, even for those with respiratory problems. Normally, this would call for a celebration or a recognition of accomplishments, and a refocus by the government to make sure pollution levels are kept manageable- by both the public and private sector. In other words, act as an arbiter, which is what government is primarily there for, to take on a role there is no way the private sector could reasonably do fairly.

However, if you think DNREC’s leaders will shake hands, hold a pizza party for their employees, and close up shop, or at least reduce their budget, you’ve just fooling yourself (perhaps you’re waiting to be added to Delaware’s medical marijuana list?). This report, which is already out, will not be published by DNREC until next year. Expect them not to acknowledge our success at cleaning the air, and instead to continue pushing for new regulations on the private sector. The agency wants as few people to know that we’ve a) met our environmental goals and b) we really don’t have any major problems DNREC can do anything about. Admitting to either a or b above means admitting they can operate on a smaller budget. And you know how government agencies feel about having their budget cut.

The problem with what DNREC is doing is, the regulations are making Delaware an increasingly expensive place to live and for large industrial companies to maintain factories. Case in point, the closing of the Evraz Steel Plant, the Chemours Edge Moor plant and the fact that neither the GM nor the Chrysler plants were ever re-used by manufacturers to create the kind of blue-collar jobs Delaware once relied heavily on. Paycheck Protection for workers and tax code reform are important. But energy prices are a major, if not the primary, reason Delaware has lost about half of its private sector union membership and seen wages stagnate or decline for most private sector workers.

It’s a shame that good, hard-working people are going to suffer higher electric bills, reduced access to clean, alternative energies, and loss of job opportunities as businesses find operating in Delaware (without government handouts) simply too expensive all so certain state agencies can continue to justify their jobs and spending. However, unless DNREC backs down on some of their new proposed regulations, that’s what going to happen. And in that case, Dave will continue to double down on DNREC, and we at CRI will continue to stand for energy policies which keep our environment clean and lower government regulations.

CRI does not claim any credit for photo and we don’t endorse or not endorse Dominos Pizza.

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