Trapped in the Middle - Income Stagnates

Justin Lahart & Kelley Evans:

Are you better off than you were eight years ago? For a growing number of middle-class Americans, the answer is "No."

Here and elsewhere, middle-class earnings aren't keeping up with the cost of living. Rising gasoline and food prices, health bills, child-care and education costs are leaving less to set aside for retirement. With the housing market in turmoil, even the asset many had come to count on -- the value of their homes -- is threatened.It isn't just a reflection of the current economic slowdown and rise in commodity prices: Middle-class incomes have been stagnant for several years. The well-heeled keep doing better, with the wealthiest 1% of U.S. families garnering the largest share of income since 1929.

"This is a squeezing-down cycle, and people are trying to hang on," says Randy Riggs, pastor at First Presbyterian Church in this city in the heart of Pennsylvania Dutch Country. "Five years ago, I had these visions of what the church could do and hoped to raise funds to do so. I can't be a dreamer at the moment." Mr. Riggs says he recently tabled a project to renovate the church's chapel because he sensed he couldn't raise enough money.

More food for thought with respect to taxes and school spending.

Posted by Jim Zellmer at April 21, 2008 8:45 AM
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