PBS - The State of America's Middle Class in Eight Charts

1/7/14
PBS.ORG VIDEO TV SCHEDULE
The State of Americas Middle Class in Eight Charts | Two American Families | FRONTLINE | PBS
PROGRAMS DONATE SHOP KIDS PARENTS TEACHERS
Search
Search This Site
Search PBS
W ATCH
S CHEDUL E
CONNECT
TOPICS
ABOUT
S HOP
TEACHER CENTER
SU PPOR T PR OVI DED B Y
FRONTLINE > Business / Economy / Financial > Two American Families >
The State of Americas Middle Class in Eight Charts

July 9, 2013, 3:11 pm ET by Jason M. Breslow and Evan Follow @jbrezlow Wexler
E -M AIL THIS
Tweet
For many middle-class families, the American Dream can feel as though it's slipping away. For others, it can seem lost for good. Consider Terry and Tony Neumann and Claude and Jackie Stanley -- the two Milwaukee couples featured in tonight's episode of FRONTLINE, Two American Families (check local listings here). In 1992, both Tony and Claude had recently lost their manufacturing jobs. For the next 20 years, our cameras followed them and their families as they struggled to avoid poverty. When they could find work, it was often for longer hours, less pay and no benefits. Bills piled up, tensions rose and relationships became strained. Of course, their story is far from unique. Over the last several decades, the middle class has struggled to keep pace with smaller paychecks, mounting debt and shrinking opportunities for steady work. The following eight charts offer a brief snapshot:
#1: Wages are down

Middle class incomes have shrunk 8.5 percent since 2000, after enjoying mostly steady growth during the previous decade. In 2011, the average income for the middle 60 percent of households stood at $53,042, down from $58,009 at the start of the millennium.
www.pbs.org/wgbh/pages/frontline/business-economy-financial-crisis/two-american-families/the-state-of-americas-middle-class-in-eight-charts/
1/18
1/7/14
#2: Less income for the middle class

Partly as a result of lower pay, the middle classs share of the nations total income has been falling. In 1980, the middle 60 percent of households accounted for 51.7 of the countrys income. By 2011, they were less than half. Meanwhile, the top fifth of households saw their slice of the national income grow 16 percent, to 51.1 percent from 44.1 percent.
#3: Union positions are shrinking

One factor behind the decline in income has been a drop-off in the number of workers earning union salaries. In 2012, the median salary for a unionized worker stood at roughly $49,000. The median pay for their non-union counterparts was just shy of $39,000. Since 1983, however, the share of the population belonging to a labor union has gone from one-in-five workers to just over one-in-ten.
2/18
1/7/14
#4: More workers stuck in part-time jobs

A second factor weighing down pay is the rise in the number of Americans stuck in part-time jobs. In 2012, more than 2.5 million Americans worked part-time jobs because they could not find a full-time position, the most since 1993.
3/18
1/7/14
#5: Fewer jobs from U.S.-based multinationals

Part of the challenge for job seekers is that U.S. multinational corporations having been hiring less at home. These large, brand-name firms employ roughly a fifth of American workers, but from 1999 to 2008 they shed 2.1 million jobs in the U.S. while adding more than 2.2 million positions abroad.
#6: Rising debt

Predictably, the economic pressures facing the middle class have left families deeper in debt. . In 1992, the median level of debt for the middle third of families stood at $32,200. By 2010, that figure had swelled to $84,000, an increase of 161 percent.
www.pbs.org/wgbh/pages/frontline/business-economy-financial-crisis/two-american-families/the-state-of-americas-middle-class-in-eight-charts/ 4/18
1/7/14
#7: Families are saving less

The rise in debt has meant fewer families have the ability to put away money for things like retirement or a childs tuition bills. In 2001, more than two-thirds of middle class families said they were able to save money in the preceding year. By 2010, that figure was below 55 percent.
5/18
1/7/14
#8: Net worth has plunged

The impact on family net worth the amount by which assets exceed liabilities has been painful. In 2007, median net worth peaked at $120, 600. Then came the financial crisis, which pushed millions of Americans into joblessness and home foreclosure. By 2010, net worth had plummeted 36 percent, to $77,300.
E -M AIL THIS
Tweet
RELA TED
6/18
1/7/14
July 12, 2013 / 5:09 pm
July 10, 2013 / 5:03 pm July 9, 2013 / 10:24 pm July 9, 2013 / 9:25 pm
What Does the American Dream Mean to You?
Photos: Milwaukees Industrial Past
Is There Hope for the Middle Class? Live Chat Transcript
Whats Happened to the Two American Families?
Comments for this thread are now closed.
6 Share Login
73 comments
Best Community Debbie Tillis Tay lor
6 months ago
The reason we do not have decent paying manufacturing jobs is they have been sent to other countries in order to give higher profits to the already wealthy. Not everyone can go to college. That is a fact, and it is ignorant to say that all you need to do is take advantage of funding options. Not everyone has the mental ability to start a business and/or come up with the money to start a business. It isn't possible for all citizens to be wealthy for a variety of reasons. You must have the working class. If you don't, who will do the work? Who will build the houses, pick-up the trash, run the cash register, answer the phone for you to make your doctor's appointment, teach our children, run our transportation, sell the cars many people can't afford, etc. It is also a must that people doing this work make a wage that enables them to provide a decent living for their family and afford to buy the products they make. My husband retired from a railroad job two and half years ago. He made a wage that allowed me to stay home and raise our children and made another job available since I didn't need to take it. When we graduated from high school, in the early seventies, there were many job options that paid a wage that a man could support his family on. These jobs have disappeared or been so downsized that they hire a fraction of the workers. We will become a country of workers that can not afford a good life for our families, with both husband and wife working. We will be a country of slave labor. Many people are there. We spend billions and billions of dollars in the name of fighting for "Freedom" and standing up for citizens in other countries all the while stripping our own citizens of the very basic right to take care of our families. The very people fighting our wars can not afford to care for their families properly. Many people want to place the blame on those who are getting government help while never admitting that those who control the money in this country are not at all to blame. It is a good thing, for the slave labor, that the right to bear arms still stands.
89
Share
Dan
Debbie Tillis Taylor 6 months ago
As to your last sentence (Debbie), looking towards America from here in Canada, I think that you are headed for a revolution. Certainly you are becoming like Mexico with gated communities of the rich and the poor living outside the walls in slums. But, alas, history - including your own - will tell you that armed resistance seldom accomplishes more than bloodshed, You will be better off electing representatives, at all government levels, who will truly fight for you - with words and a pen rather than a sword. I haven't visited the United States since 2001 because it now feels like a police state. Very sad.
29
Share
Mic hele Hogan
Dan 6 months ago
In theory, and as a life-long Quaker, I agree with you about armed revolution. But things have reached such a state in the US that representatives who truly represent people and not corporations have absolutely no chance of getting elected. Corporations donate as much money as they like to campaigns - they are 'people' after all, with free speech rights! - and of course that is much more than even a huge group of poor people can muster. Corporate-owned media ridicule anyone with the interests of the middle-class at heart - remember Howard Dean? - or persecute them until they give up their ambitions. And media also perpetuate the idea of racial discrimination, blowing up any instance of it to national proportions - remember the Harvard professor drinking beer with Obama? - to prevent the less wealthy from realizing that whatever the color of our skin or national origin, we are all in this together, with a common, corporate enemy. We have lost our voice, and, frankly, right now, I don't see the way out. It's terrifying.
15
Share
Dan
Michele Hogan 6 months ago
I fully understand the desperation and anger - and must add that Canada is not really better off, as we have the same problem of middle class erosion - but I say emphatically: another Revolution or Civil War will not acheive the results you want. It would be better to look at examples like Gandhi or Lech Walesa, and explore a "passive resistance". Stop shopping at stores that sell foreign-made goods, stop consuming the corporation's products (like oil), have a small garden, refuse to accumulate debt and just do without, and cultivate a sense of family and community, working together to inspire others - like the Stanleys are doing. Democracy is the most powerful force humankind has ever created. If the representatives you elect don't do their job, find another that can. It will take time, but it will work.
1/7/14
12
Share
Debbie Tillis Tay lor
Dan 6 months ago
Dan, My guns comment was sarcasm, sorry I should have noted that. My point is that those who tend to be for the wealthy are also the ones who want us to have the right to own any type of weapon and will not support background checks. They seem to think that those who are opposed to voter ID are crazy. I mean who in their right mind would not support voter ID, yet I say who in their right mind would not support background checks for gun owners. Also, I believe it would be great if we could elect representatives who will "truly" fight for us, however, I have no delusions that if there is such a person that they stand a chance of getting anything done. I don't know what you are referring to in "it feels like a police state". I have lived long enough to see the middle class dwindle down to nothing. My definition of the middle class is one working adult making enough money to support a family. I am the eldest of six. My father worked and supported our family with his check. He was not a college graduate. Sorry I gave the impression that I am up for a revolution. Far from it. I am saying that the majority of our population has lived free since our arrival some 200 years ago. When people feel they have nothing left, when you strip them of their pride and integrity, things will get ugly and they will use their 2nd Amendment right to take as many as they can with them, and we know they have the right to stand their ground. -more sarcasm. As I said in my original post, my husband retired from the railroad. We have lived a decent middle class existence. Not everyone wants a huge home or many huge homes. The majority only want to live and enjoy the simple things of life. Products and services have gone up and wages and jobs have gone down. Yes, wages are up from the 70s but not in comparison with prices. Money runs this country. That is the way it is and in time it will lead to the destruction of this country. Many years ago I told my father that the meek will inherit the earth, from scripture. His response was, with a laugh, "yep, after the rest of us tear it up". I was greatly offended, mainly because it was scripture I was quoting to him. Today, I can say his comment was point on.
5
Share
Dan
I hear you, Debbie. I also hope that those in the Occupy Movement see that their objective is flawed: they should not be seeking to tear down the 1%, but rather to elevate the 99%. You cannot fight for a negative. An example would be the Civil Rights movement where the objective was not to have white people become subject to discrimination but rather to have equality for all. When individuals have lashed out at "the system" or "the government" through violence, we rightly see them as crazy, and their victims are innocents. There have been plenty of recent examples in Oklahoma City, in Colorado, New York, and so on. I know that you were not advocating that, however I hope that no one else feels the need to take those measures ever again. I do still believe that if people unite and assert their beliefs for better working conditions, results will happen. That led to the creation of unions in the first place, and can lead to their resurgence in the future after decades of decline. Also, a more important movement would be the re-establishment of community and family, and I think that is why we all admired the Stanleys and their faith. The power of the masses is insurmountable.
3 ldfrmc
Share
Well stated. But, like Dan also says, you fail to recognize the power of ballots over bullets, a pen over a sword. I am as frustrated. We do not need a college education to VOTE, to WRITE, to SPEAK - to produce the kind of American Revolution that is our hallmark: Not threats, or violence, or arms - but VOTES, WORDS and DEEDS. No bullet will ever make the lines on a chart reverse direction. Waiting to use the first amendment is a very poor excuse, even for anyone who did not go to college. Using the fifteenth amendment (right to vote) requires work. We know how to do that, no college required.
3
Share
Debbie Tillis Tay lor 2 S c ot t Thor

Share
ldfrmc 6 months ago
My guns comment was sarcasm, sorry I should have noted that. Read my comment to Dan.
I agree that not everyone is "college material", but anyone with average intelligence (the majority of the population) can finish college. There are a multitude of ways to pay for college outside of racking up CC debt. It won't be easy, but working FT and going to school is one option, finding employers who have tuition reimbursement is another (I got both a BS and MBA mostly paid for by my employers at the time).
3 4
Share
Scott Thor 6 months ago
The college graduate pool is flooded. Many unable to find jobs. My daughter has a Master's Degree and jobs available to
1/7/14
her, which are few, pay no more than she was making before her degree. Now she has over $50,000 in student loans to pay and there was nothing available to her to help pay her way. She was always just above or just below whatever, to qualify and as I said we were middle class living a decent life but no where near paying for college educations for two children. College tuition is as insane as is medical cost.
7
Share
S c ot t Thor
I agree that college tuition is out of control. I recently finished a doctoral degree at a private university, and have been blessed with a thriving consulting practice that has made the ROI for the degree well worth it, but I would venture to guess I'm an anomaly. My advice to those who are considering college is that you have to do the math on whether it's worth it. In the long run there is no question a college degree is going to lead to higher earnings than just a HS diploma, but paying for it may take a decade or two of loan payments. The alternative is to look for options you can afford to pay cash for. Often people choose a college based not on what they can afford, but instead on reputation and/or name recognition, when in many cases this has no impact on earnings after you get the degree.
3 Jim Thy k es on
Share
6 months ago
Right-wing philosophy has waged war, and won, against the thing they hate most; fair wages. They took away the lowest rung of working folk by 'importing' illegal aliens from Mexico and central America. When I was a young man (73 now) agricultural field work, building construction work, all jobs of this ilk was the domain of blacks and poor whites. When business thought this segment was making too much wage they simply recruited workers from the forementioned countries. In doing this, they wiped out a whole class of the American work force, and created the 'illegal alien' problem. Then they (the right) have the unmitigated gaul to bitch about the problem they are responsible for. When unionized manufacturing ( ununionized as well) became too expensive they closed operations and went offshore. They called this run away 'multi-nationalism', which again, was running from the fair-wage and union busting. Recently, with manufacturing unions almost totally decimated, these same folks started dismantling public sector unions like teachers, fire fighters, police, nurses, etc. Now we are being forced to take enormous wage cuts, plus forego pensions and healthcare. And oh by the way; they HATE PBS and FRONTLINE!! They are ruining our nation. Wake up before it's too late...it might be already.
32
Share
js k dn
Jim Thykeson 6 months ago
There is certainly a powerful minority of the Republican Party establishment, often termed as its donor class, that promotes illegal immigration or some functional equivalent of suppressing wages through the importation of workers from other countries. But you are deluding yourself to ignore the pivotal role of Democrats, the media, including PBS, and Democrat interest groups like ethnic identity advocates and unions in opposing the kind of effective enforcement that is necessary to control illegal immigration. PBS is an advocate of the illegal immigrants and their right to be here. The reality is that many people in the working class have had their economic opportunities severely diminished by the elites in this country, both left and right, including Bill Moyers and company. In market economies employers pay what they have to pay and worker's labor market bargaining power is a function of the available supply of willing employees. This Frontline program even had a brief reference to the one time in the last few decades when such tight labor conditions existed, in the late 1990's, and you can see it in chart #1. The dot-come bubble had made the economy flush and the Federal Reserve seemed to have changed its thinking on the Phillips Curve or NAIRU (Non-Accelerating Inflation Rate Of Unemployment) and potential employees had choices. Globalization certainly hurt the manufacturing areas of the country. While those pressures won't completely go away, persistent, large trade deficits tremendously aggravate the problem. Policies that didn't allow such deficits would have a large effect on reducing employment in this country. It's one thing to have free trade, as in the exchange of good and services from this country with those produced elsewhere. It's another to allow continuing, massive debt-financed purchases by this country of what people in other countries produce. There are jobs that simply can't be off-shored but those jobs are subject to domestic labor market forces. If you look at who has been getting the jobs, you'll find that they have been going disproportionately to immigrants. Reuters hired researchers at the Center for Labor Market Studies at Northeastern University to review of U.S. Bureau of Labor Statistics and Census Bureau data find out who was getting jobs for 2008-10. Over the past two years, as U.S. unemployment remained near double-digit levels and the economy shed jobs in the wake of the financial crisis, over a million foreign-born arrivals to America found work, many illegally. From 2008 to 2010, 1.1 million new migrants who have entered America since 2008 landed jobs, even as U.S. household employment declined by 6.26 million over that same period. http://www.reuters.com/article...
1/7/14
Steven Camarota did a study covering 2000 to 2013 that gives a longer term picture of the trends. http://cis.org/immigrant-gains... We have massive numbers of working age people who are not in the workforce. The latest BLS employment numbers shows the additional number of working-age persons not in the workforce over the last year exceeded the number of additional jobs added over the same period. Yet this situation is cast aside as the elites push amnesty and greatly increased immigration, and that includes the liberal media elites.
10
Share
I completely agree Jim. As a railroad worker, my husband was a union worker. He was set up to be a supervisor and worked as a supervisor for nine years at which time they sent in a hatchet man to set the majority of the supervisors back to their tools. The supervisors that had protection as union workers. These are the people they wanted to shake loose. My husband continued to pay his union dues while he was a supervisor so went back in his place of seniority. If he had not kept up his dues he would have lost nine years and possibly laid off. That was in '92'. I told him hang on with everything you have. They were doing a major shaking. For those of you who work for a corporation that has given you the impression you have a job for life. Don't believe it. It was a lesson my husband learned. He was emotionally devastated. He would not have had a job if it had not been for the union protection. My husband thought this railroad would always have his back. They told him they would. My father told my husband don't believe. They will stab you in the back. Again, my father was right. Living brings wisdom. Not because our brain gets somehow smarter, but because we live an hopefully learn. Just a note on unions. Unions can be great thing, I do however believe they need some changes. Workers should not be protected when they are lazy, sorry workers. I have seen employers powerless in getting rid of bad workers. Some things need to be changed within the unions for sure. It is a shame that unions are needed to force business to do right by workers. This comment meant for those to whom it applies.
5
Share
Roger A rt uro Delgado 2

Share
you've got that right. Outstanding brief analisis..Thks !
Claudia W
Jim,I am a 65 year old Conservative Republican who just retired after 40 yrs in Health Care. Nursing for 40 yrs has taken a toll on my body,my neck and sholder are shot, I didn't quit and get on Disability,I stuck it out and now am ready to draw my S.S. Everything you said you were against,me too ! Everything you blamed on my party,you are flat out wrong. I can tell you don't have any Republican friends,you would know better. Most of the best people I've ever met are life long Republicans. And as for not liking PBS and FRONTLINE.... I've spent a small fortune on purchasing shows from FRONTLINE and PBS... i cry all through the animal shows on my local Oregon public Broadcasting,and love the politics and world news on FRONTLINE. Their programs on the government and are simply brilliant. I grew up in California and watched my beloved state start to crumble. All my school years years I never saw any Blacks or Mexicans. But by the time I left in 1976 I really was depressed. Everybody you meet down there has either just arrived and can't speak English,or doesn't work and are on Medical Marijuana. We had the best of everything all thru the majority of those years. I worked at Douglas Aircraft for 2 years starting at 17 yrs old,then onto college. I remember the older workers were always laughing at Detroit paying 25 bucks an hr hanging doors. They used to say..'no way can they keep this up paying that kind of wage for such a lightweight job.The machine did all the work" Hummmm,that was back in 1967 ! That guy had a crystal ball. Of course Douglas Aircraft then merged with McDonald and finally became a parking lot.
1/7/14
i loved that job ! 17 yrs old driving a brand new Barracuda. Oh well.. Nursing became my heart and soul for almost 40 years. I didn't vote for Obama,I can assure you! I love George Bush and Laura,and owe no apology for that. History will judge them. In closing,I want to tell you who did a dirty deed on the public that will haunt America for years. I'm used to seeing people who cut their heart medicine in half,they can't afford it. Then I see them for heart attacks and cva's . Back to the dirty deed that just gets buried. Obama signed a back door deed with Canada that forbids cheaper drugs in America. Meaning we pay the highest price for our meds with no place to go. One of my meds is 110.00,and I take 2 others. All the time I worked it was 10 bucks per script. And I doubt we will ever fix this. He sucessfully buried it and it was done without any conversation from opposition. Well,I shared a bit of my life with you..I don't get mad when I talk to Dems/Libs, I just try and prove ir with facts. No personal attacks,no blaming the entire Democratic Party like you blamed mine. Good Luck from a Conservative Republican
1 E TNIK S
Share
6 months ago
TO MAINTAIN A STRONG MIDDLE CLASS WE HAVE TO RESOLVE THE ISSUE OF MONEY CREATION WHAT IS HE WARNING US ABOUT? "I believe that banking institutions are more dangerous than standing armies... If the American people ever allow private banks to control the issue of currency, the banks and corporations that will grow around them, will deprive the people of their property until their children wake up homeless on the continent their fathers conquered" Thomas Jefferson MONEY CREATION To understand Jefferson's warning we have to clarify a few points that most people don't know. 1- The US government does not create the money supply. The money supply in the current Fractional Reserve Banking System we use, is done by private banks as they give credit 2- 95% of the money in circulation is not printed. It exists as a digital number in computers. 3- The money created as loans doesn't include the money needed to pay the interest, so the economy has a constant scarcity of funds. 4- The US central bank is NOT owned by the US government. 5- Once the loans are paid back to the banks it DISAPPEARS, that money ceases to exist and is out of circulation. 6- To replenish the vital money supply, NEW debts have to be created by bank lending 7- If governments, businesses and individuals pay back loans and don't do new borrowing (austerity) THEN THE MONEY SUPPLY DECREASES and forces more bankruptcies, less tax revenue, less government services and ruin the economy 8- Banks only need 10% deposit to lend out money they don't have. To solve this problem, we need to change the current system from a Debt-Based money system, to an Asset-Based currency system controlled by the communities, not by for-profit banks, as it is today. this video explains it: http://www.youtube.com/watch?v... And this video: http://www.youtube.com/watch?v... WE'RE AT A CROSSROADS www.pbs.org/wgbh/pages/frontline/business-economy-financial-crisis/two-american-families/the-state-of-americas-middle-class-in-eight-charts/
11/18
1/7/14
The State of Americas Middle Class in Eight Charts | Two American Families | FRONTLINE | PBS WE'RE AT A CROSSROADS The system is crashing like all ponzi schemes do eventually. Unless we change the way we create the currency, we won't solve the Middle Class erosion.
27 2
Share
B renda Cowles
6 months ago
I truly believe the U.S. is in a not-so-slow decline as the middle class foundation has been eroded over the past 30 years. Many factors have played into this process including finance de-regulation, corporate malfeasance, the unending focus by this country on supporting the military/industrial complex, loss of quality jobs, tax policies that favor corporations, incoherent political system, etc. This decline is occurring in such a way that it has eaten into the very heart and soul of the average American. This loss of hope has made people feel like they cannot affect any change. I, for one, have contacted my senators/house representatives, written to the White House, and expressed my frustrations and offered suggestions for improvement, with only canned responses. No one is listening to the average person. The conservative response is to blame people for their lack of a strong work ethic, lack of desire for advanced education, and "big government"; all of these responses represent a complete lack of understanding with what is actually occurring and only result in continued stalemate and inaction to make improvements. If people, both conservative and progressive, don't come together to address these issues, then this decline can only continue. I, personally, don't see that happening for many years, if ever, and, by then, it may be too late.
10 Mik e
Share
6 months ago
I have been convinced since the ( "Greed is good..") days during the early 1990's that too much access to our government and national assets had set off an international and domestic feeding frenzy. After the ultra wealthy and corporation heads engorged themselves by taking every liquid asset, business, and holdings available they then realized that they could return labor back to the days of controlled serfdom (european slavery). They have deliberately hollowed out our middle class, stolen our dreams, cancelled our liberty, and they actively prohibit our golden symbol of abundence (the cornicopea filled with food and work's rewards) from filling and giving to all Americans. It is ever more apparent to me that we will have to go to war with the rich just like the French did with their foolish goverment, their banks, and their greedy lawyers. You rich corporates and government had better change our economy for the better and for all OUR people only! First comes awareness, then meetings, followed by armed insurrection. If you listen you can hear the growing thunderous storm approaching.
10 Chupuk
Share
6 months ago
If I got this right, when Debbie lost her home, she had lived in it for 24 years and owed $96,000. I'm guessing that they did not pay much more for the house when it was new, meaning that very little of their payments actually paid down the primary loan balance, meaning that it all went into the pockets of the Bank or Mortgage company. This is all about simple exploitation of the under-privileged (most of us) by the over-privileged new aristocracy in this country called the Banking and Financial Services Industry. The methods have changed, but this is no-less than the same feudal system practiced in bygone eras. WAKE UP!! Make no mistake, we are working and dying for this new aristocracy that are untouchable from any form of authority. It has become apparent that the Congress, Executive Branch and major Government agencies are now firmly in their pockets and simply exist to do their bidding . It would seem that nothing less than revolution is capable of fixing this mess that is destroying this country.
15 1
Share
c hwolvert on
Chupuk 6 months ago
After 24 years she owed 96,000 and it later sold for 38,000. I suspect the original loan was for a lot less than +96k; most likely they kept refinancing and adding more and more debt to the loan over those 24 years.
6 dvb
Share
6 months ago
Have you noticed the many empty seats lately at major league baseball games? Part of the reason for this drastic decline is that the middle class have been squeezed out of enjoying the great American Pastime. Fathers with their sons and families can no longer afford the exorbitant prices changed to watch players with their multi-million dollar contracts play ball. Congress has not taken any action about the doubling of interest rates on student loans. This does not affect the elite; however, those in the middle class seeking higher education will be saddled with enormous debt. Even now, most graduates cannot find a job in their field, and end up in low paying or part-time jobs that keep them at arms-length from health benefits, and struggling financially. The big banks were bailed out by the government, but have you tried to apply for a loan modification because you lost your job or experienced a steep decline in your income? The bank will extend the term of your loan until you are in your 90s, and ruin your credit score in the process (thats if you make it through month after month of paperwork). No problem for the elite; their mansions are paid off, while the middle class struggles to put food on the table and gas in their cars. Large corporations march into bankruptcy courts to wiggle out of paying union pensions and health care benefits to their employees and, unfortunately, the courts oblige after allowing huge severance packages for the top executives. Those at the top who need it the least get rewarded, while those at the bottom are simply forgotten. The salaries of most CEOs in this country make the Presidents www.pbs.org/wgbh/pages/frontline/business-economy-financial-crisis/two-american-families/the-state-of-americas-middle-class-in-eight-charts/ 12/18
1/7/14
The State of Americas Middle Class in Eight Charts | Two American Families | FRONTLINE | PBS rewarded, while those at the bottom are simply forgotten. The salaries of most CEOs in this country make the Presidents salary look pale. The figures cannot even be compared.
The United States has spent billions rebuilding Iraq. In contrast, FEMA couldnt manage to get trailer homes sent to New Orleans. Families who lost everything after recent hurricanes and tornadoes are still homeless, and struggling to get their insurance companies to pay for damages while they must continue to pay their mortgages, as well as property tax increases levied after the storms. We have gone so global that Americans seem to come last. Corporations continue to reap profits on the backs of women and children in Third World Countries. Prices have gone up while quality has gone down. The American Dream of owning a home in the United States has all but disappeared thanks to the outsourcing of jobs. If Im not mistaken, these same corporations avoid taxes by doing their business in other countries. Corporate greed has been tearing away the very fiber of the American worker. The mom and pop businesses are gone. Wealthy foreigners now run most convenience stores, restaurants, and gas stations. The profits go back to their countries, not ours. We are quickly becoming a country of the haves and have-nots because those with power and money are heard, while the cries of the middle class are mute.
9
Share
Dave Holden
6 months ago
Full circle: Ship jobs overseas so couple has no income, sell house to immigrants so couple has no place to live. Umm... someone explain how our government is representing US citizens in all this?
6 Jud
Share
6 months ago
As a retired corporate recruiter who in the late 1980's and early 1990's did business with Milwaukee manufactures including AO Smith, Allen Bradley, Master Lock, Rockwell International and Johnson Controls, I am outraged because the pain suffered by dislocated workers and their families can be avoided. What makes this situation so disgusting is that we know how to prevent these problems Just look at the successful career and retirement coaching methods used by the auto industry. Where is the leadership? Where is the sense of responsibility? Where is our collective commitment to treating our fellow human beings with dignity and respect?
4
Share
c laudedais y
6 months ago
Two American Families was an excellent, if tragic story about two families struggling through the years to make it in America. I think they represent thousands of families in this country who we never hear about, who have been dealing with job layoffs, foreclosures and low wages for the last decade. It's unlikely the second generation of these families will do any better and perhaps even worse. The dream of owning a home in this country is becoming a dream, rather than a reality based goal. While the stock market continues it's upward climb from the big recession (depression), the average American isn't any better off. With low paying jobs and struggling to survive to put food on the table and a roof over their heads, things still look pretty dark at the end of the tunnel. A college education is a good thing to enrich one's mind, but there are very few jobs available for twenty year old college graduates that will help pay gigantic student loan costs or support finding a place to live away from the family. Many manufacturing jobs once available to people who chose not to go to college have now been shipped out of the country.These jobs only provide more profit for the corporations, horrific working conditions in unregulated countries and often inferior products. The rich do not want anything done that will change their lifestyle, while the middle and working classes have almost disappeared in this country due to huge wage inequalities. Both families, though working really hard at all kinds of jobs, continue to struggle financially even as they grow older. Where they once might have hoped for retirement, now they know they have to keep working until they physically can't anymore. Unfortunately, our politicians will say almost anything to be elected and then once they win, it is easy to see they do what the corporations want, not the average American. Most all of our elected representatives in government, are wealthy themselves and most have never faced life challenges like the families in this program. Maybe a way for revolution without violence, is for everyone in the country not to send in their tax returns next April. Something revolutionary needs to happen in the United States because at this point, it's only working for the wealthy as the rest of us face lifelong struggle.
4 P . Ny m 10 3

Share
6 months ago
Share
End the Fed and end the income tax.
rads enior
6 months ago
Everyone's $. 02 is still $. 02 excepting the top 1% have more $. 02 than everyone else. Net worth plunged 36% while multi-national companies increased employees overseas and excess monies were moved off-shore. The average income has decreased while TEARepublicans languish in repeated anti-abortion bills that will go nowhere. Lest there be any doubt who's side the TEA-Republicans are on! The 2014 Mid-term is a-coming! As is 2016, and 2018! V.O.T.E.(Vote Out The Encumberance)
3
Share
S c ot t Thor
6 months ago
13/18
1/7/14
S c ot t Thor
6 months ago
These graphs paint an interesting picture! As the US economy continues to shift away from high paying manufacturing jobs and more toward lower paying service jobs the outlook is not good for those who would have enjoyed the "good life" with only a HS education. Part of the problem is that there is an ever-greater emphasis on education, and those with no post HS degree, certification, etc. are going to struggle in many cases. Their best hope, assuming they can't go to college, which I would argue is not a valid argument with all the funding options available, is to take on an entrepreneurial mindset and dream big while living on a realistic budget while doing so. Some of the problem is self-inflicted, I would argue, especially as it relates to debt. Sure, the bankers may have taken advantage of some ignorant people by giving them mortgages, CC's, etc. that they should never have received, but one graph that is missing is the shift away from personal responsibility to reliance on government help. I would argue that graph would show a major downward trend in responsibility. So what then is the solution? Tax the wealthy more? Shift a greater percentage of the income to those in the middle? I'm not sure that who has the money will make all that much a difference. I do know that anyone who believes the federal government should get more tax dollars because of their stellar track record for handling our money needs to be slapped with the reality that they are the last role model we should look up to regarding controlled and responsible spending.
9 5
Share
K at ray 447
Ah, yes, the knee-jerk extreme right-wing voice, re: "shift away from personal responsibility to reliance on government help." This argument doesn't even qualify as a valid argument - it has no basis in reality whatsoever. It is a shameful thing to even think, let alone vomit into your keyboard. Did you actually watch the program?? You seem to have taken absolutely nothing away from it. What is the solution? Good question. Stuff I would do? Whatever was necessary to repeal NAFTA. Whatever was necessary to bust up the huge banks, and allowing the incestuous incursion of Wall Street into main street. Prosecute every "entrepreneur" who very nearly destroyed the economy of the entire world - like, tomorrow. Tax the ever-loving crap on every dollar made by any individual over $1 million. Personally, I think if you've made a million bucks this year alone, the rest of the country needs a big chunk of it more than you do. Figure out how to slap HUGE fines on every multi-national holding trillions of $$ overseas to avoid taxes. If they want to fold up shop and move overseas, fine - let them - THEY ALREADY HAVE DONE THIS - Let's just make it official and revoke their citizenship on their way out the door. Make it illegal for the US military to HIRE corporations to do any job they are perfectly capable of doing for themselves at a fraction of the cost - simply increase the pay for regular soldiers and watch what happens to recruitment/retention rates. End multi-billion $ corporate welfare...NOW. Gee, should I go on? There are so many it fairly boggles the mind. Our country has gotten so stupid, its breath-taking, and all you can do is make baseless accusations against people who are hurting the most? Don't look now - you're a BIG part of the problem, my friend.
28
Share
Meg E lder 4 Gues t
Katray447 6 months ago
AMEN!!! I second everything you said Katray447. NAFTA was the biggest blunder in US HIstory.
Share
so you want a graph showing the "shift away from personal responsibility..."? What does that mean and please EXPLAIN who determines personal responsibility? Heritage Foundation maybe? Are you also posting as chowoleverton?
22
Share
S c ot t Thor
Guest 6 months ago
I wasn't proposing we literally start measuring personal responsibility, but I do believe that some of the problem is from people who believe the government is going to fix the problem. The story last night showed a number of people taking responsibility for their lives, which I really enjoyed seeing. The problem that ran common to each person was their lack of education. It also didn't seem like any of them were thinking past finding the next job, which would lead to a repeat of the same cycle all over again. If I was in their position I'd be thinking about how to get out of that cycle instead of continuing to live in it.
1/7/14
3
2
Share
Redac t ive1
Scott, you seem to be a thoughtful---and even moderately compassionate---person, so you might not realize that it's arguably borderline arrogant of you to opine that "[i]f I was in their position I'd be thinking about how to get out of that cycle instead of continuing to live in it": it's unjustified to assume that none of the members of either of these families thinks about breaking the cycle---and, especially with respect to those who might not have had the educational or other opportunities for advancement that some of us have enjoyed---it's even more unjustified to assume that thinking about bettering one's situation is a panacea.
10 Meg E lder
Share
Redactive1 6 months ago
Not to mention the reality that there are many jobs that still need to be filled in our society for which a college degree is superfluous. We need a strong working class, we need that working class to be paid a living wage in which they can support a family. There will always be a portion of our citizens who are looking for handouts....but there are soooooo many people who are out of work, or working 2 or even 3 jobs, many people forced into parttime jobs to make ends meet. When you look at the enormous profits made by CEO's and billionaire corporate leaders, when you see an exponentially increasing divide between the working class and the corporate elite, can't you admit that there is a bigger problem than simply "personal responsibility?"
Share
t ex rat 13

Share
It affects people with degrees, too.
Monac o
texrat 6 months ago
Your right, unemployment does effect people with degrees; however, it happens far less - particularly for someone with a master's degree. In fact, according to the Bureau of Labor Statistics, the unemployment rate for households with a professional degree is only 2.1% versus 12.4% for families without high school diplomas. Bottom line... education does play a huge factor in unemployment rates. http://www.bls.gov/emp/ep_char...
2 Ric k
Share

Share
http://www.huffingtonpost.com/...
ldfrmc
The federal government does "get more tax money" when the minimum wage provides enough for working people to live, to buy what they need, to save a little for the future. People working and earning (your unstated "personal responsibility"), buying and saving puts work-money into the economy - then government "gets more tax money". Did you actually watch the Frontline Program? People must have a job and a job that pays a living wage to be "personally responsible" for themselves, their families and their government. If you do not think you are part of government (society), what do you think you are?
Share
arobins on
6 months ago
The Middle class is not suffering because manufacturing jobs went overseas; the middle class is suffering because the class beneath them are suffering stagnation and low wage earnings. The Middle Class will continue as an indebted class as long as their base continues to earn subsistence wages. The Middle Class represents roughly only 10% of the economy where as their base represents 80% of the economy. Increased wages for the bottom 80% will filter up to the Middle Class. Ronald Regan with his trickle down economic approach robbed the Middle and destroyed the other 80% bargaining power at the table, following the Air Controller's Strike. Americans have been told that we are poor because we lost manufacturing, If this was the case why are the corporations richer then in anytime in history? Presently, the corporations are hording enough liquidity to pay the National Debt? If it was true why does 1% of the American population control 80% of the Resources? No; the middle class is poor; because the class beneath them are poor.
2 Jak e 2
Share
6 months ago
Share
Graph #5 is the KEY to the current disaster our country is facing. All the other graphs flow from Graph #5.
Donnmaria Tuc k er K illinger
6 months ago
15/18
1/7/14
Donnmaria Tuc k er K illinger
6 months ago
I was impressed with both families and wish them well for themselves, their in a nice and safe area is becoming more difficult. Too many landlords want to 'get rich' at their tenants' expense. Companies sending their manufacturing ovetseas and unions are responsible for many of our problems along with a Congress full of wealthy people who promise their consiguents the world abd staft them when in office. We need to lower or eliminate the income tax or tax the people who have the most money and can find ways to avoid paying taxes. I wish both families, their children and grandchildren success in their efforts. To own your own home has always been the American dream. I believe for the average person it has become the impossible dream. Even renting a house or an apartmet
3 1
Share
Meg E lder
Donnmaria Tucker Killinger 6 months ago
Excuse me? How are unions the problem exactly? As unions have grown smaller and smaller our standard of living for the majority of Americans has gotten worse. I don't understand your logic.
3 Dana
Share
6 months ago
Thank you to the two families who opened their lives and homes. After some reflection I have the opinion that we are now a part of a global economy. The poverty level globally has come up. And our middle class is now competing not just with each other in this country but globally. I think our expectations need to align. Other countries are better suited to accommodate with the family unit, several generations living and growing older together. We have become too self centered and need to swing back to a more traditional model of the family unit, work ethics, working together to grow together. Great piece of journalism. Thank you.
4 3
Share
part erre
Dana 6 months ago
I've watched a very interesting series of DVDs about family life in countries around the world. It is astounding to see the children around the world doing all their schoolwork in English, and learning other languages as well. The kids and parents are happy and grateful to go to school. They're not whining about rules, homework, etc. I watched this with my kids and say "see, that's why you want to study math and science". Because the 2nd graders in Egypt are learning it too, in English.
Share
Dr. S
6 months ago
More Americans need to vote. They can vote to end the fake free marketeers, which really believe in captured markets by captured politicians with campaign money and lobbying. If politicians were more afraid of the voters than their money sources, America can be a better place. They could bring back Glass Steagall, end false right to work states, raise the minimum wage, wasted money and blood on wars we will loose, and kill a bunch of faceless foreign civilians and gain nothing from, not even cheaper oil, or total elemination of mortal enemies. As long as we don't vote, we have no say in America.
3 2
Share
fargo44
Dr. S 6 months ago
Sounds like a recipe for disaster to me doc. That's the kind of approach used in Detroit, which has been under complete control of the democratic party for the last 51 years (as in half century). It went bankrupt yesterday. QED
2 ponic han
Share
6 months ago
My take on the 8 Graphs. 1. Nothing really surprising there. Peaks in the late 90s and the mid-2000s correspond with the dot.com bubble and the housing bubble. Both of these bubbles probably pushed up incomes to a non-sustainable level. Yet looking at the trend overall you see steady growth in wages since 1980 even after the current hit we are still considerably above where we were 30 years ago. 2. Probably the most troubling graph of the lot. Income distribution is a tough one and the trend should not be diverging like is shown. 3. Union membership shrinking is a direct result of the mix of jobs currently available in the US. Not sure how I feel about this. I would think that the goal would be to create jobs that can support a middle class lifestyle regardless of whether or not they are union based or not. 4. Absolutely nothing surprising about this graph. The trend lines for the current recession look identical to previous recessions. You can see the inverted impact of the dot.com and housing bubbles in the graphs. Again the current recession does not look any more severe than previous recessions. 5. Feels like a misleading graph. Only using US multinationals would only tell half the story What about Toyota, Honda, Siemens, and the multitude of other non-US multinationals? If their graphs look the same then yes there is something to think about. With Globalization I would expect the trend for US multinationals to be exactly as shown on the graph over the last 30 years. I would also expect the graph to be inverted for non-US companies as they ramped up their presence in the US over the last 30 years. I would expect the actual overall
see more
Share
16/18
1/7/14
Chery l Hans on
6 months ago
This is an important story. A book well worth reading is "The Price of Civilization: Reawakening American Virtue and Prosperity" by Jeffrey D. Sachs. He reminds us that we do need safety nets, and that judgment of those in hard times is not the American Way.
1 E TNIK S
Share
6 months ago
Wealth Inequality In America http://www.youtube.com/watch?v...

1 baron95
Share
6 months ago
What a biased piece of journalism. It purposefully stop many of the graphs (like household wealth) in 2010. When the 2012 data has been published by the FED showing that household wealth has fully recovered and topped 2007 levels. Similarly, the income distribution hart shows only the 40%-60% range to make the changes look massive. On a proper 0-60% scale, the changes come across as very modest. The union vs non-union pay chart, again,misleadingly is not adjusted for part-time workers which is almost non-existant in union employment, and it also is not adjusted by occupation. Union workers in the US are primarily government, manufacturing and transportation, and overwhelmingly full time. What is the non-union average salary for FULL time workers in government, manufacturing and transportation? Answer, there is no gap. Average middle class income, again, misleading because it does not include benefits (like medical insurance and 401K paid by employers). When those are folded in, the median income is nearly flat. There are real challenges to working families in America. But tabloid/sensationalistic features like this, completely discredits the cause. Put honest data in,and the nation can have an honest dialog.
6 14
Share
Load more comments
Su b s cri b e
Ad d D i s q u s to yo u r s i te
In order to foster a civil and literate discussion that respects all participants, FRONTLINE has the following guidelines for commentary. By submitting comments here, you are consenting to these rules: Readers' comments that include profanity, obscenity, personal attacks, harassment, or are defamatory, sexist, racist, violate a third party's right to privacy, or are otherwise inappropriate, will be removed. Entries that are unsigned or are "signed" by someone other than the actual author will be removed. We reserve the right to not post comments that are more than 400 words. We will take steps to block users who repeatedly violate our commenting rules, terms of use, or privacy policies. You are fully responsible for your comments.
NE X T ON FR ONT LINE
T OD AY'S ST OR IES
To Catch a Trader
January 7th
January 7, 2014 / 3:30 pm
January 7, 2014 / 10:33 am
January 6, 2014 / 11:56 am
Chart of the Day: The SAC Advantage
SAC In Spotlight As Insider Trading Trial Opens
Isnt This Illegal?
Join our newsletter

e-mail address Subscribe
Follow @frontlinepbs FRONTLINE on
17/18
1/7/14
Funding for FRONTLINE is provided through the support of PBS viewers and by the Corporation for Public Broadcasting. Major funding for FRONTLINE is provided by the John D. and Catherine T. MacArthur Foundation. Additional funding is provided by the Park Foundation, the Wyncote Foundation, and by the FRONTLINE Journalism Fund.
Supporting Investigative Reporting
FRONTLINE Watch FRONTLINE About FRONTLINE Contact FRONTLINE Privacy Policy Journalistic Guidelines PBS Privacy Policy PBS Terms of Use Corporate Sponsorship FRONTLINE is a registered trademark of WGBH Educational Foundation. Web Site Copyright 1995-2014 WGBH Educational Foundation PBS is a 501(c)(3) not-for-profit organization.
18/18

PBS - The State of America's Middle Class in Eight Charts

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

PBS - The State of America's Middle Class in Eight Charts

Uploaded by

Copyright:

Available Formats

1/7/14

PBS.ORG VIDEO TV SCHEDULE

Search This Site

The State of Americas Middle Class in Eight Charts

#1: Wages are down

#2: Less income for the middle class

#3: Union positions are shrinking

#4: More workers stuck in part-time jobs

#5: Fewer jobs from U.S.-based multinationals

#6: Rising debt

#7: Families are saving less

#8: Net worth has plunged

What Does the American Dream Mean to You?

Photos: Milwaukees Industrial Past

Is There Hope for the Middle Class? Live Chat Transcript

Whats Happened to the Two American Families?

Comments for this thread are now closed.

Debbie Tillis Taylor 6 months ago

Mic hele Hogan

Dan 6 months ago

Michele Hogan 6 months ago

Debbie Tillis Tay lor

Dan 6 months ago

Debbie Tillis Taylor 6 months ago

Debbie Tillis Taylor 6 months ago

Debbie Tillis Tay lor 2 S c ot t Thor

ldfrmc 6 months ago

Debbie Tillis Taylor 6 months ago

Debbie Tillis Tay lor

Scott Thor 6 months ago

Debbie Tillis Taylor 6 months ago

Jim Thykeson 6 months ago

Debbie Tillis Tay lor

Jim Thykeson 6 months ago

Roger A rt uro Delgado 2

Jim Thykeson 6 months ago

you've got that right. Outstanding brief analisis..Thks !

Jim Thykeson 6 months ago

Chupuk 6 months ago

End the Fed and end the income tax.

Scott Thor 6 months ago

Meg E lder 4 Gues t

Katray447 6 months ago

Scott Thor 6 months ago

Guest 6 months ago

Scott Thor 6 months ago

Redactive1 6 months ago

Scott Thor 6 months ago

It affects people with degrees, too.

texrat 6 months ago

Scott Thor 6 months ago

Scott Thor 6 months ago

Donnmaria Tuc k er K illinger

Donnmaria Tucker Killinger 6 months ago

Dana 6 months ago

Dr. S 6 months ago

Wealth Inequality In America http://www.youtube.com/watch?v...

Load more comments

January 7, 2014 / 3:30 pm

January 7, 2014 / 10:33 am

January 6, 2014 / 11:56 am

Chart of the Day: The SAC Advantage

SAC In Spotlight As Insider Trading Trial Opens