Federal Reserve Bank of Boston’s Post

Here's the minimum annual income required to be middle class in NY, NJ and CT NEW YORK CITY - A new study has figured out the minimum annual income required for a family of four to be considered middle class in each state – and the NYC area shouldn't be surprised that these numbers are sky-high for the Tri-State. The middle class is capturing a lower share of income than in the 1960s, 1970s, and 1980s, according to Oliver Rust, head of product at independent inflation data aggregator Truflation. Rust said during an interview with Consumer Affairs that in the two decades since the mid-2000s, the portion of the country that is middle class has shrunk from roughly 60%. Instead, there has been a steep increase at the extreme bottom and top of the economic spectrum. Inflation has surged in the past few years, peaking at 9% in June 2022. That means some families who were middle class in 2020 may no longer be in that category. The Pew Research Center says the share of adults who live in middle-class households fell from 61% in 1971 to 50% in 2021. #economy #middleclass #newyorkiptv https://lnkd.in/gWqCqkdA

Please note that selected text and all graphics used in this series are © Pew Research Center, 2024. All Rights Reserved. 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. This is a very significant drop and a seismic shift in the financial fabric of the United States. As you can clearly see on the bar chart the I reproduced from their May 2024 research, the share of Americans in the middle class has fallen since 1971. As a result, Americans are more apart than before financially. From 1971 to 2023, the share of Americans who live in lower-income households increased from 27% to 30%, and the share in upper-income households increased from 11% to 19%. Notably, the increase in the share who are upper income was greater than the increase in the share who are lower income. In that sense, these changes are also a sign of economic progress. But as the Pew work also notes, "the middle class has fallen behind on two key counts. The growth in income for the middle class since 1970 has not kept pace with the growth in income for the upper-income tier. And the share of total U.S. household income held by the middle class has plunged." Plunged indeed, as we will clearly see in more data from the Pew report.

The median age of the U.S. population rose to a record high in 2022, a demographic trend that has implications for the economy and government programs like Social Security and Medicare. https://ow.ly/75oL50Sc0N5 Contact the Capstone Financial Group for more details: Call (866) 74-PEACE….that’s (866) 747-3223 #economy #financialadvisor #investing #markets

Are you in the American middle class? Find out with our income calculator-by BY JESSE BENNETT, RICHARD FRY AND RAKESH KOCHHAR About half of U.S. adults (52%) lived in middle-income households in 2018, according to a new Pew Research Center analysis of government data. Roughly three-in-ten (29%) were in lower-income households and 19% were in upper-income households. Our calculator below, updated with 2018 data, lets you find out which group you are in – first compared with other adults in your metropolitan area and among American adults overall, and then compared with other adults in the United States similar to you in education, age, race or ethnicity, and marital status. STEP 1: See where you are in the distribution of Americans by income tier. Enter the location that best describes where you live, your household income and the number of people in your household. The calculator adjusts for the cost of living in your area. #economy #inflation #newyorkiptv https://lnkd.in/exh2Q5_R

Households and incomes in the U.S. have changed drastically over the past 5-10 years—yet survey questions remain the same. With rising single-parent, multi-generational, and blended households, along with stagnant real incomes and inflation eroding buying power, it’s time to rethink how we measure "household income." 📊   Quest's Research Director, Scott Worthge, partnered with Fordis Consulting: Market Research Solutions to investigate these changes and identify simple adjustments that can lead to better insights. Check it out ⬇️ #householdincome #consumerinsights #mrx #consumerstudy

The median age of the U.S. population rose to a record high in 2022, a demographic trend that has implications for the economy and government programs like Social Security and Medicare. https://ow.ly/osTF50Sc0N6 Contact the Capstone Financial Group for more details: Call (866) 74-PEACE….that’s (866) 747-3223 #economy #financialadvisor #investing #markets

📈 Florida's consumer spending is outpacing much of the nation, growing by 8.1 percent in 2023—the highest increase in the country, according to the Bureau of Economic Analysis (BEA). 📈 This surge, driven by spending on health care, housing, utilities, and food services, reflects the Sunshine State's strong, resilient economy. 🏥🏡💡🍽️ In North Port, with a growing population 👥 and an average median income of 78,500 dollars 💵, our residents are part of this trend, contributing to local economic growth. As consumer demand rises, it presents opportunities for local businesses to thrive and meet the needs of our community. 🔗 Read the full report here: https://lnkd.in/e8w2cUze #NorthPort #EconomicGrowth #FloridaEconomy #ConsumerSpending

Recent research by the Pew Research Center has confirmed what many Americans have suspected: the middle class is shrinking and has been since the 1970s. Middle-class households once accounted for 62% of the nation’s income — now they’re 43%. Meanwhile, the upper-class share has grown from 29% to 48%, the study finds. The middle class has long been the engine of our economy; a disappearing middle class does not bode well for our economic future. Good paying jobs, stable communities, and economic opportunity should be priorities to reverse this trend. https://lnkd.in/ePxc7iEn

Minnesota ranks fourth of the top five states to move to, according to a new study. ConsumerAffairs measured factors such as affordability, economy, education and health, quality of life and safety. The study noted Minnesota’s low unemployment rate (the nation’s seventh lowest) and low poverty rates. Overall, Minnesota finished with the eighth-highest economy score. https://hubs.li/Q02LlW5F0

Based on data from the U.S. Bureau of Economic Analysis, New Jersey's median personal income ranked 4th in the nation at $137,252, about 23% higher than the national median #income. The state's total personal income grew by $230.4 billion, or 47.5%, since 2012. The BEA has recently begun publishing state-level data on the distribution of #personalincome across households, giving R/ECON researcher Will Irving the opportunity to more closely examine the distribution of income and income #inequality in New Jersey compared to the nation over the last decade.