Tami
Luhby of CNNMoney.com wrote in January 12, 2012:
Nearly one third of Americans who were
raised in the middle class dropped down the economic ladder as adults -- and
that's before the Great Recession hit. Pew looked at children born in the
early- to mid-1960s and assessed their economic status roughly 40 years later.
Being middle class in the parents'
generation meant a household income of roughly $33,000 to $64,000 in 1979. But
their children had to earn between $54,000 and $111,000 to maintain their
relative standing in society in the mid-2000s. (These figures are adjusted for
inflation.)
The middle class is defined as those
between the 30th and 70th income percentile.
Things have only gotten worse in recent
years. The Great Recession has likely made it harder for many people to remain
in the middle class, experts said.
Long-term
unemployment has devastated the ranks of the middle class, with many
people losing their homes and forced to turn to food banks and government aid
after they run through their savings. It takes nearly 41 weeks, on average, for
the jobless to find new work. Also, the steep decline in home values has hurt
many in the middle class.
Young adults
may find it particularly difficult to hold onto their parents' middle class
status. That's because they are having a much harder time landing jobs,
particularly well-paying positions in their field. The unemployment rate for
20- to 24-year-olds was 14.4% in December, compared to the national 8.5% rate.
This could hurt their earning potential
for decades to come, which has earned them the nickname "The Lost
Generation."
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