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Pew Research Center Executive V.P. Paul Taylor and FBN’s Liz MacDonald on the state of the middle class in America.
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Fifty years ago the macarena.
The number one song in 1996.
What happened back then Braveheart won the Oscar Charles and Diana got -- eBay was launched.
Bill Clinton in the White House and what was important about back then.
You're making just as much money then as you are today.
That's right.
Not adjusted for inflation the typical American household 1996 made about 35000 dollars a year.
Now when you would just separate inflation you get about where we are right now.
Income for the typical American family has been dropping steadily.
For three years median income and 2010 fell below 50000 dollars a year.
That's down nearly two and a half percent in the last year and down more than 7%.
Since its peak in 1999.
So let's get this straight.
According to the experts the recession ended two and a half years ago.
But in comes are continuing to decline the middle class is becoming well almost nonexistent.
As more Americans struggled to stay afloat.
The Wall Street Journal points out the income gap is still pretty wild wide that is the top 20% of households account for half of all pretax income.
And according to the New America Foundation middle class jobs thirty years ago made up more than half of the income in the US.
Now it's closer to 40%.
This is the worst for man forget 1996 their earnings levels are now more likely what they were in 1978.
And women -- -- com is actually rising slightly but we still make 25% less than our male counterparts.
Younger Americans really struggling.
Those between the ages of 25 and 34 nearly six million.
Had to live with mom and dad this year up from under five million before the recession.
That's more than 14% of all the people in this age group shocking statistic.
In fact the Census Bureau made a disturbing observation officially group who live with their parents have a poverty rate of less than eight and a half percent.
You want to know why because they include the entire family then come.
But if you take that out young people their poverty rate skyrockets to more than 45%.
It's just sad without a middle class that is energized and vibrant.
Our economy will -- American dream just doesn't work without the promise that are fortunes and that of our families can grow there's no incentive to start new businesses.
Or go to work or even in best.
You might as well live in Greece.
The bottom line -- need to grow we need more jobs in that job growth needs to have wages.
That sustain the middle class.
