America’s Middle Class is no Longer the World’s Richest

America on top. That is exactly how it has always been. Since the beginning of the 20th century, America has strived to be the leader in business. It would be an understatement to say that capitalism did not flow through veins of America. However, certain distinctions previously held by America have come under fire. The American middle class has always been the most affluent, until now. Even though the wealthiest Americans are still outpacing many of their affluent global peers, there has been some analyses showing that across the lower and middle-tier income levels, citizens of other countries have received larger raises over the last three decades.

Studies have been showing that middle tier of other countries have not only caught up to the United States, but have passed the US as well. For example, in Canada, after-tax middle class income, which was significantly down in 2000 is now higher than the US. Studies are also stating that the poor in much of Europe earn more than poor Americans.

Even though economic growth in the United States continues to be a strong as many other countries or even stronger, but only a small percentage of American households are benefiting from it. Studies are showing that the struggles of the poor in the United States are worst than even expected. Families who make money in the bottom 20th percentile of income distribution makes significantly less money than a similar family in Canada, Norway, Finland or Netherlands. The amazing thing about this detail is 35 years ago, the reverse was true.

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