If November’s election was any indication, the middle-class revolt is very real… but what’s the real reason behind this genuine resentment?
Our middle class has been shrinking substantially since the 1960s and ’70s. And today, their share of wealth is the lowest in the world, at a mere 19.6%!
But what exactly is to blame for their demise?
Could it be the outsourcing of manufacturing jobs to China and other Asian countries?
Maybe the flood of illegal and legal immigrants into U.S. jobs?
Or possibly the growing wealth of the top 1%, and the insatiable greed on Wall Street?
Millions of Middle-Class Investors Have Become Victims of Wall Street… Make Sure You Know How to Protect Your Financial Future
All are viable candidates to take the blame. But most other developed countries face the same competition from the emerging world, and many have some degree of influx of lower-skill immigrants and most are also seeing their rich get richer… yet they haven’t been losing nearly as much of their middle class.
So, what gives in the U.S.?
Extreme political polarization and income inequality! We’re the highest on both.
Today real incomes of the middle class are 5% lower than they were in 1970 and 12.4% lower than in 2000… when they peaked!
Here’s the big insight: When we take out the affluent 10%, we see the bottom 90% average only $32,352 in income per year. The top 10% skew the overall average dramatically, so the $55,132 you hear about isn’t accurate.
In the meantime, the top 0.1% have seen their share of wealth go up four times, since 1975! And, since 1970, the “super elite” 0.01% has seen their incomes grow a whopping 628%!
Along with the most extreme political divide between red and blue parties, which could make it difficult to pass any effective legislation that would bring relief to the middle class, it’s no wonder we are seeing massive civil unrest and a shocking victory for Donald Trump.
If the election taught us anything, it’s that we seem to have no idea what could happen next, and how quickly the middle-class may benefit from the Trump victory. In this new age of unpredictability, it’s more important than ever to understand how the market could be affected and how to protect your wealth.
For a closer look at these shocking numbers, what’s been fueling this middle-class revolt and the dangers that lie ahead, check out our latest infographic below: What Killed the Middle Class?
Renowned Economist and bestselling author Harry Dent also provides you with the keys to planning and protecting your financial future, in the uncertain economy ahead in his latest bestseller, The Sale of a Lifetime!