Since the 1970s, the American middle class has been getting slowly squeezed by rising costs and stagnant wages.
And if the latest Wage Statistics report from the Social Security Administration is any indicator, the American middle class may very well be on its deathbed.
The most unsettling number from the report: roughly 51 percent of American workers earn less than $30,000/year. And the majority of those workers are making significantly less than $30k. According to the report, 38 percent of American workers bring in less than $20k/year.
If you’re wondering, the federal poverty level for a family of four is $24,250. However, it has been estimated that it takes closer to $50k for a family of four to live a comfortable middle class lifestyle in the United States today. According to the 2014 Wage Statistics report, a whopping 71 percent of American workers make less than that.
Keep in mind that these statistics only cover those Americans that are currently employed. Right now, 10% of working-age Americans — roughly 20 million people — are unable to find a job (using the U6 unemployment rate).
It’s also worth noting that approximately 25 percent of Americans have a negative net worth, according to a recent report from Credit Suisse. So if you’re debt-free and have a dollar in your pocket, you’re already more wealthy than one quarter of the country.
Check out the Social Security Administration’s 2014 Wage Statistics report for yourself here.