Opinion: February 14, 2022. The American Middle Class is Shrinking

According to this article, the American middle class is shrinking.

This graph (same reference as the article referred above), showed that the people in the 50th to 90th percentile of wealth ownership (middle class) decreased the percent share of total net worth from 35.6% to 27.9% from 1989 till 2021. This occurred while the top 1% of wealth owners increased the percent share of total net worth from 23.6% to 32.1%

On of the reasons that may be related to this is inflation. Inflationary times favor people with assets. Middle class people suffer the effect of hidden taxation and are not protected by progressive taxation.

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.