The Middle Class Is Going Extent All Over America

The great shrinking of the middle class that has captured the attention of the nation is not only playing out in troubled regions like the Rust Belt, Appalachia and the Deep South, but in just about every metropolitan area in America, according to a major new analysis by the Pew Research Center.

Pew reported in December that a clear majority of American adults no longer live in the middle class, a demographic reality shaped by decades of widening inequality, declining industry and the erosion of financial stability and family-wage jobs. But while much of the attention has focused on communities hardest hit by economic declines, the new Pew data, based on metro-level income data since 2000, show that middle-class stagnation is a far broader phenomenon.

The share of adults living in middle-income households has also dwindled in Washington, New York, San Francisco, Atlanta and Denver. It's fallen in smaller Midwestern metros where the middle class has long made up an overwhelming majority of the population. It's withering in coastal tech hubs, in military towns, in college communities, in Sun Belt cities.

The decline of the American middle class is "a pervasive local phenomenon," according to Pew, which analyzed census and American Community Survey data in 229 metros across the country, encompassing about three-quarters of the U.S. population. In 203 of those metros, the share of adults in middle-income households fell from 2000 to 2014.

 Pew defines middle-income households here as those making between two-thirds and twice the national median household income. For a three-person household in 2014, that means an income between about $42,000 and $125,000.  The fact that median incomes have declined over this same time frame also means that the bar to get into the middle class is actually lower now than it was in 2000. Pew's metro-level data are also adjusted for household size and local cost of living.

The shrinking middle class is in part a reflection of rising income inequality in America, and of the same underlying and uneven economic forces that have fueled the rise of Donald Trump. And as the middle class has been shrinking, median incomes have fallen, too. In 190 of these 229 metros, the median income dropped over this same time.

As the middle class has shrunk, Pew points out, the lower and upper classes in America have grown in size and significance. In some metros, the middle class is dwindling primarily because families are falling out of it and into the lower class. The share of households in this bottom tier has skyrocketed since 2000, for instance, in Goldbsoro, North Carolina, a railroad junction with an Air Force base.

But in other places, the shrinking middle class is actually a sign of economic gains, as more people who were once middle class have joined the ranks at the top. This has been the case in booming energy hubs like Midland, Texas.

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