Time: One in Five in the US Reaches Affluence

by Rachel Baker on December 11, 2013

The flip side of the income gap is that there is a rise of the new rich. This is an interesting article, though there are no links to the data that is being used for the analysis.

In a country where poverty is at a record high, today’s new rich are notable for their sense of economic fragility. They’ve reached the top 2 percent, only to fall below it, in many cases. That makes them much more fiscally conservative than other Americans, polling suggests, and less likely to support public programs, such as food stamps or early public education, to help the disadvantaged.

Last week, President Barack Obama asserted that growing inequality is “the defining challenge of our time,” signaling that it will be a major theme for Democrats in next year’s elections.

New research suggests that affluent Americans are more numerous than government data depict, encompassing 21 percent of working-age adults for at least a year by the time they turn 60. That proportion has more than doubled since 1979.

At the same time, an increasing polarization of low-wage work and high-skill jobs has left middle-income careers depleted.

“For many in this group, the American dream is not dead. They have reached affluence for parts of their lives and see it as very attainable, even if the dream has become more elusive for everyone else,” says Mark Rank, a professor at Washington University in St. Louis, who calculated numbers on the affluent for a forthcoming book, “Chasing the American Dream,” to be published by the Oxford University Press.

As the fastest-growing group based on take-home pay, the new rich tend to enjoy better schools, employment and gated communities, making it easier to pass on their privilege to their children.

Their success has implications for politics and policy.

Here’s the origin story:
http://business.time.com/2013/12/09/rising-riches-1-in-5-in-u-s-reaches-affluence/

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