PP&D 4 Lecture 7: Chapter Summary week 7
27 Apr 2018
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WEEK 7 reading response
America’s Shrinking Middle Class: A Close Look at Changes Within Metropolitan Areas
●Decrease in middle class, measuring 6 percentage points or more in 53 metropolitan
areas, 4-point drop nationally
●The share of adults in upper-income households increased in 172/229 metropolitan areas
○The share of adults in lower-income households rose in 160 metropolitan areas
from 2000-2014
●In Goldsboro, old railroad junction town, middle class fell from 60% to 40% and lower
class percentages rose
●But… In Midland, an energy-based economy who benefited from the rise in oil prices,
middle class decreased 53% to 43% while upper class percentages increased
●The definition of “middle income”: adults whose annual household income is two-thirds
to double the national median, after incomes have been adjusted for household size
○In 2014 the national middle-income range was about $42,000 to $125,000
annually for a household of three
●Lower-income households have incomes less than 67% of the median and upper-income
households have incomes that are more than double the median
●The difference between middle income and middle class… Middle class can define more
things than income, including type of work/education or ownership values. It can also be
self identified
●Midwestern areas show some of the highest shares of adults who are middle income
●The prices of goods and services in a metropolitan area differentiate from prices across
the nation, so it is necessary to adjust incomes in each area for the difference in cost of
living.
●Jackson, TN was found to be the area with the lowest cost of living, it is about 17% less
than the national average
○To be considered middle income here, a household needs to make $34,600
●Honolulu, HI was found to be one of the most expensive areas, the cost of living is about
22.5% greater than the national average
○To be considered middle income here, a household needs to make $51,000
●Metropolitan areas with the largest middle classes are mainly in the Midwest and
Northwest
○The largest upper-income tiers are mainly to the northeast
○The largest lower-income tiers are mostly to the south or southwest
●The middle class shrank and incomes fell in most metropolitan areas from 2000 to 2014
○The share of adults living in middle-income households decreased in 203 areas
Document Summary
America"s shrinking middle class: a close look at changes within metropolitan areas. Decrease in middle class, measuring 6 percentage points or more in 53 metropolitan areas, 4-point drop nationally. The share of adults in upper-income households increased in 172/229 metropolitan areas. The share of adults in lower-income households rose in 160 metropolitan areas from 2000-2014. In goldsboro, old railroad junction town, middle class fell from 60% to 40% and lower class percentages rose. But in midland, an energy-based economy who benefited from the rise in oil prices, middle class decreased 53% to 43% while upper class percentages increased. The definition of middle income : adults whose annual household income is two-thirds to double the national median, after incomes have been adjusted for household size. In 2014 the national middle-income range was about ,000 to ,000 annually for a household of three.
