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THE MIDDLE CLASS IS DISAPPEARING:
A recent report just found that The total population of the middle class in “the U.S. has dropped from 61% in 1971 to 50% in 2021.” It’s also said that “the average wealth of the middle 40% had dropped by 7%, or $27,000, since March of last year,” which equates to the largest drop on record since the 2008 Great Financial Crisis.
Less than a year ago, Fortune also stated that the “middle class is bracing for its next financial blow,” and according to Yahoo, the former backbone of America is finally “at the end of an era,” with middle-class wealth having peaked in February of 2022.
HOWEVER, not everyone agrees, and depending on the data you look at, the middle class might not be shrinking in the way that you think:
According to the Brookings Institute, the middle class isn’t disappearing – it’s just INCREASING: As they say, the bottom 1/5th has 25% more income in 2007 than they did in 1979, when you account for “government transfers, the value of health insurance, and the decline in household size.”
They also found that the middle FIFTH increased by 37% throughout that same timeframe and that the middle-class TODAY is a LOT better off than the middle class of the 1970s, given the abundance of government programs and assistance.
As they say, “The middle class is not shrinking or becoming impoverished. Rather, changes in workers’ skills and employers’ demand for them, along with changes in families’ size and makeup, have caused the incomes of the well-off to climb much faster than the incomes of most Americans.”
A separate study also reported that, yes – the middle class is shrinking – but only because they’re moving into higher-income groups. From 1971 through 2021, the middle class shrunk as a disproportionate amount became “upper-class.”
It’s also true that, while the United States has the smallest middle class of similar nations…we also have the largest “affluent class” and “poverty class” – suggesting that, perhaps…people are either just getting richer, or they’re getting poorer.
So, overall, it does appear as though the middle class IS slowly disappearing – but the good news is that, according to the statistics, there’s now a greater likelihood of moving up into a HIGHER income bracket than at any other point in history.
That’s why, I think it’s so important to double down on your career skills, stay out of consumer debt, live below your means, invest consistently and, if you have the appetite for risk, possibly start that side hustle business you’ve always wanted to do.
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Almost like the top 20% of american owns 90% of the wealth. Oh wait they do.
This is thanks to the Plandemic!!!
The miserable usa regime has collapsed
All empires collapse within 250 years!!!
Bro how much you charge for a call I am an real estate investor and I think it will be cool to talk to you
Nothing new. People have been saying this for decades lol. Yawn..
Grahams hands never EVER stop moving – once you’ve seen it, you cant unsee it
All the knowledge, glad I found you Graham.🤝
These are all wise advise, Except the fact that Life goes on and you get older day by day, and what you could do with money today you don’t even want to do 30 years from now when you the “absolute “ number in your investment accounts are higher, and not necessarily their buying power or “value”.
Adding to that is major market moving events are controlled by governments and let’s put all hands together as deep states. So unless you’ve already passed the net worth threshold of say $100 mil, today as a US resident, you are going to be kept on your toes and could go relatively broke anytime by the events outside your control; sort of like death 😂
Wow, holy crap, I thought it peaked in 2007 before that recession
Bidenomics
Embrace BRICS, reject federal. Make JFK proud 😊
Thank you!
Bidens america
As a European, I’m so confused why I would need a credit card.
Biden and his labor department are looking at killing the 1099, independent contractor (or as they call it “gig worker”) by treating professionals like Uber drivers and making everyone become w2. And dummies are eating it up as if this is going to be good for them.
Majority of most people’s money goes to rent/mortgage.
The Western Civilazation returninh to Medieval Times bcoz of Leftist Policies!
Nicely done… there are also the demographics in the US impacting the middle class.
Aye, as the old saying goes: ” to everyone who has, more shall be given, and he will have an abundance; but from the one who does not have, even what he does have shall be taken away.” St. Matthew the tax collector was right then and he’s right now such is the nature of the capitalist system.
partially your fault for not talking smack on democrats
We are legit in a silent depression rn
If you’re not sure which political administration is ruining our economy in the USA, the middle class isn’t the problem. You are.
I guessed middle class is beoming rich and not middle class anymore.
Middle class is the worse class to be in as there no help for them or their kids . They have no choice but to put themselves to work to maintains their bills . I find it disgusting to any peoples , potus , politicians to think middle class don’t need him they comfy but reality check here that they are the most hardest working class ever and never have once there were there anything for them so they have the rights to be upset how our tax money being spend bc it’s their money that they worked so hard for ! Our country is corrupted bc how funds are given is not fair for everyone . Is like saying why should our money give out to peoples that don’t contribute? They needs to work like most of us n the lower say I don’t have that opportunity etc .. in the end what we really need is how we can make both classes move one level up
Too much hyptothetical…..just to save taxes one should be self employed? Not all can be self employed dude. And in order to save taxes being self-employed what if someone doens’t want to invest into anything un-necessarily?
Fear mongering to get views?
Bunch of bots in here
Even if you are poor in America u are considered rich in most part of the world
It’s been slowly disappearing for decades. It’s just hard to keep hiding it now with where we’re at.
THANKS TO THAT HOBBIT AT FTX, NO ONE TRUSTS YOU FOR ANYTHING. UNSUBSCRIBED.
I have to write a paper on this lmao right on cue my friend. How do I cite your work?! 😁
Hey graham I don’t know if you have done this for 2023 yet, but can you make a video on what we can invest in now or next year?
Did you move out yet?
Can you make a video of how the US dollar is devaluating, and in what way this could affect every American.
And what happens in history when the middle class disappears. Civil war ?
Bringing up the bottom means we are all at the bottom.
The US population also doubled to increase demand for products and depress wages
It’s corporate greed. If you own a large business that’s your dream. For the majority of the people working for you that’s not their dream. The owners owe everything to their employees yet they don’t care and pay slave wages for making their dream possible.
The ELEPHANT in the room is how you define middle class. We don’t have a set standard definition so just about everyone thinks that they are middle class from the working poor to people with net worth over a million. The fact that the working poor are the fastest growing segment of the population (according to 2020 census) means they will eventually takeover as the new middle class.
I DECLARE BANKRUPCY!!!!!!!!!!!!!!!!!!!!!!
So you’re saying that Nixon and Ragan killed the middle class and made people’s lives worse huh?!?! I agree!
The big governmentists turned this country into a banana republic
BIDENOMICS
This video is a masterclass in understanding the financial challenges facing the middle class today.
Your breakdown of the historical changes and the current tax structures was incredibly insightful. The strategies you provided for improving one’s financial situation are practical and actionable.
I’m curious, in your research, did you come across any specific policies or systemic changes that you think could help reverse the shrinking of the middle class?
Also, what are your thoughts on the role of education in empowering individuals to make better financial decisions?
The binary of the haves and the have not begin. The oppressed and the oppressors. This is not going to end well.
You need to look pre 1960s and you’ll see the introduction of government programs screwed the economy and then what you see now is that people have been programmed to survive off of the government program which makes it far worse for the middle class.
Taxes and fees have risen beyond reasonable levels. We must fight this and stop allowing politicians to steal from us and give to non-allies
Why the middle class is shrinking. Because the democrats are ruining this country.
This feels like a bit of a bad faith video. The middle class started disappearing in that time because of Trickle Down Economics. Everybody is still waiting for that trickle. Also, I make 30% more than my dad did a decade ago when he bought his first house BY HIMSELF. No dual income, just him. Now, I couldn’t afford his first house, not even a literal shack for my first house. To anybody that says the Middle Class isn’t dying will get a huge F*** You from me.
Tied to inflation minimum wage would be around 19, productivity is around 23-24
Fantastic thumbnail and video title as always
According to the Brookings Institute, if we pad our numbers we end up with the lower class doing better in 2007 than in 1979. I do not buy it. There is no government assistance for the middle class.
too many greedy landlords, greedy politicians, greedy CEOs. Greed is killing us all
Internet and e-commerce has lifted a lot of ppl out of middle class and sometimes even poverty, while some of big companies and brands ran out of business or currently struggling, a lot of smaller e-commerce stores and a lot of content creators are thriving. Big nationwide brands/companies closed their doors coz they can’t adapt fast enough, while entrepreneurs are quickly adapting and make their profits.
So much blabbing to fantasize that the end of the fiat system may be postponed. Pathetic.
Very well informed video, I watch your content consistently and learn so much thank you for giving back and sharing your thoughts and knowledge
This guy uses more energy waiving his hands and fingers around. His hands and fingers are in a performance all their own. Then there’s the leaning back and forth. Don’t forget to fold your hands together and do it all again. Rinse and repeat. Throw in some facial expressions that close the gaps and it is like a dance routione choreagraphed for the upper body only. All while exlpaining a barrage of details on financial matters. Voice inflections for an audio show. Some kind of vocal effect would be appreciated for enhanced audio absorption.
Just reacting off the title but bruh the middle class disappeared almost 20 years ago now.
Your example starring MR. BURNS was…… “Excellent.”
*FIRST WORLD PROBLEMS* lol
Hmmmm. I found it strange how he fails to mention AI and the rise of MASSIVE AUTOMATION replacing jobs. (Amazon, anyone?) THAT will be the death of The Middle Class. Mark your calendars— October 2029.
One thing we can definitely say about this presentation on the rise and fall of the Middle Class in America. And that is:
This guy REALLY knows how to talk with his hands. Ka’chava…!!!
end
I’ve done my own research the other day. And middle class is being pushed into extinction. 💔 Speaking of the devil (IRS). My plan is to leave US for a while after I hit my financial goal. I don’t like how they TAX me.
You show upper-income as $100,000+ from 1970 to present. But for $100,000 in buying power today, you would need about $300,000+. so the upper wealthy class isn’t growing a glowingly as you show. A multimillionaire can deduct a plane from his taxes, working poor and middle class deductions for medical and other expeses is limited. If you earn $40-75,000 the medical bills you need to rack up to be able to claim the deduction, you’re on your way to bankruptcy and the grave.
the term “Middle class” doesn’t mean anything.
it’s literally an undefined term.
The “middle class” can mean anyone making from $11,000 to $480,000 a year.
it’s used so broadly it basically encompasses everyone.
First! 🙂
That’s when economies collapse 🥶
Trudeau is rolling out his basic income plan. He will likely use inflation to pay for it and melt the middle class and poor together. Marxism only has the poor in servitude and the super wealthy barons and elites.
Wow this so sad lord!
HI GRAHAM LIKE ALWAYS GREAT CONTENT BRO 💯
I HAVE A QUESTION IS INVESTING IN REAL ESTATE RIGHT NOW LIKE FOR RENTAL PROPERTYS A GOOD INVESTMENT?
Youtubers views are disappearing/dropping. Should we be concerned? Youtubers are going away like Dino.
The middle class is an imaginary class.
By the way, you didn’t tell us something that we didn’t already know.
If you outsource all your call centers to India, your technology manufacturing to China and your automobile manufacturing to Japan .. They will get the money your workers were going to get..
Right? The foreign countries come up a fraction in wealth middle America dives down. When are we going to get a fish tank update.
As a new business owner at 21. This is very helpful. Graham is so helpful with financial advice and have been watching for over a year. Thank you
Great content! That’s what a 1031 exchange is for. No depreciation recapture if you 1031 and follow the rules of buying a new property at equal or more value in a timely manner
Good video… Lets not forget corporations lobbying (bribing) politicians for favorable legislation and tax treatment… The fact that our public education system doesnt teach skills, with which, to earn a good living, corporate off shoring of jobs, and the class warfare that has been largely successful, as spoken of by Warren Buffet, and as blue printed by Supreme court Justice, Lewis Powell, in his 70s infamous, Powell Memorandum… (look it up) To name just few more people never talk about
I think 2023 is the 53rd annual Memorium sir.
Stop making doomsday videos. It’s annoying.
We, the middle class, love to wasting our hard earned money because we enjoy working longer and harder. We can basically afford anything at any price, homes, luxury cars, expensive restaurants, vacations, and Starbucks, and anything that takes our money away.
Thanks, Joe Biden.
This is Reagan’s fault…
You voted for this and Brandon delivered.
Wait… the trickle economics is not working? But…. But they said it would come down to us! At one point people will bring the guillotine back and get all of it back. History shall repeat itself.
Or we could overthrow the current order and install a democratic economy where everyone has the same benefits. As we should. Instead of competing people into an early grave for no reason other than clout and greed
It’s a plan that’s been in place for a long time. Now it’s all downhill from here. If you followed the conspiracy trail you’d know exactly what’s happening. You’ve been warned forever.
There are still people that can’t afford their bills. I would still consider them lower class. If you can afford all your bills, and still have a decent savings. You are not lower class.
No it’s your popularity and passion is what’s disappearing
Hi Graham! I learn so much from your content but im so confused on one thing.. so i’m 19 & opened up a roth IRA last year. I maxed out the amount i could invest this year but then realized… am i supposed to be investing in stocks in a regular trading brokerage account instead?
50 years of anti labor and Robber Barron capitalism.
There is only the Rich and the Poor……there is no Middle Class anymore
When pensions went ahead and the 401k became prominent, it detached the companies from their employees and since the labor unions decreased, voter turnout also decreased.
اذكر الله
Starbucks in the us is cheaper than the rest of the world
I go to Starbucks just to chill out and hung out,not to drink coffee
Unpopular opinion, Middle Class never existed
I highly recommend, “The System: Who Rigged It, How We Fix It” by Dr. Robert Reich the former Labor Secretary. 💯
So when Taylor swift breaks up again I need to get in line
Computer adoption in late 70s and early 80s came at time productivity and wages started diverging notably, and is magnified today.
you know, this thumbnail is so depressing. I fear of losing everything just one day.
I’m shocked Goldsboro, NC made this video. As someone who lives there though, it’s an apt place to include.
I forget where I heard it, but there is this idea that when everyone is bailing, it’s time to buy in; when everyone is buying, it’s time to sell.
Welcome to Costco, I love you.
letting monopoly’s win and not boycotting is why smh