The wealth gap in USA; no recovery for middle income Americans

Very interesting, and frustrating. From the LA Times business section.

"The latest data reinforces the larger story of America's middle-class household wealth stagnation over the past three decades,"

Using the latest Federal Reserve data, the Pew Research Center said Wednesday that the median wealth for high-income families was $639,400 last year — up 7% from three years earlier on an inflation-adjusted basis.

For middle-income families, the median wealth — that is, assets minus debts — stood at $96,500 last year, unchanged from 2010.

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In Pew's definition, middle-income households are those earning between two-thirds and twice the median income, after adjusting for household size. The median marks the halfway point.

For example, a one-person household was categorized as middle income if its earnings last year were at least $22,000 but less than $66,000. For a four-person family to qualify as middle income, earnings had to be at least $44,000 but less than $132,000.

Based on these thresholds, 46% of American households were classified as middle income last year. One-third were considered lower income, and 21% upper income.

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Seen over a longer period, the typical wealth of upper-income households in 2013 was about double what it was in 1983, after adjusting for inflation.

For middle-income households, there was practically no change in wealth over the 30-year period. The median wealth for the middle class was $94,300 in 1983. That peaked at $158,400 in 2007 and has since retreated to $96,500.

For lower-income households, wealth rose to a high of $19,100 in 2001, but has since fallen to $9,300 last year. Their median wealth was $11,400 in 1983.