The State of the American Middle Class

The share of Americans who are in the middle class is smaller than it used to be. In 1971, 61% of Americans lived in middle-class households. By 2023, the share had fallen to 51%, according to a new Pew Research Center analysis of government data. As a result, Americans are more apart than before financially. In a sign of overall economic progress, the increase in the share of Americans who live in upper income households was greater than the share who lived in lower income households, a sign of overall economic progress. But the growth in income for the middle class since 1970 hasn’t kept pace with the income growth for the upper tier and the share of total U.S. household income held by the middle class has plunged. Not only do a smaller share of Americans live in middle class households today, the incomes of middle-class households have also not risen as quickly as the incomes of upper-income households.