Median Household Income Rises; Middle-Class Definition Shifts
What happened
Analysis of U.S. Census Bureau Current Population Surveys data shows the median American household income is currently $87,460, according to the Federal Reserve Bank of St. Louis. Using a specific definition, the middle class is defined as households earning between two-thirds and double the median income. This definition currently requires a household to earn between $57,723 and $174,920.
From aol.com
Why it matters
The rising median income has increased the financial threshold required to be classified as middle class. The report notes that the percentage of Americans considered middle class has decreased from 61% in 1971 to 51% currently, reflecting trends in income inequality.
From aol.com
Who's involved
- Federal Reserve Bank of St. LouisReported the current median American household income
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- New census data may reshape Ramit Sethi's financial adviceNew income and debt data could refine Ramit Sethi's personal finance advice.Likely
- Rising consumer debt may increase risk for Rocket MortgageRising consumer debt may increase risk for Rocket MortgageLikely
- National debt levels may temper Texas housing and commodity demandNational debt and income squeeze may temper housing and commodity demand in TexasPossible
- Financial strain may slow housing market activity for Realtor.comFinancial strain may slow housing market activity for Realtor.comPossible
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The entities involved
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Federal Reserve Bank of St. Louis
Federal Reserve Bank responsible for the eighth district, headquartered in St. Louis, United States
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