Over the past five decades, the American middle class has experienced a significant decline in its share of aggregate income. Once a robust segment, the middle class has seen its earnings shrink from 62% of the U.S. aggregate income in 1970 to a mere 42% in 2021. According to a recent report by Pew Research Center, this reduction in earnings has been accompanied by a simultaneous growth in both low and high-income classes, squeezing the middle class from both ends.

The study defines middle-class households as those earning between two-thirds and double the U.S. median income. Notably, unmarried women and single-earner households are less likely to be part of this income group.

Over the same period, the high-income class has seen its aggregate earnings increase from 29% to 50%. Interestingly, this group is still less than half the size of the middle class in America. Conversely, the low-income class has experienced an expansion in size, but its share of aggregate income has dropped from 10% in 1970 to just 8% in 2021.

The report also highlights the disparities between racial and ethnic groups within these income classes. Black and Latino Americans are more likely to belong to the low-income class, with approximately 40% of each group falling into this category, compared to 24% of white people. However, there has been some upward mobility for Black and Latino Americans, with the Black high-income class more than doubling in size over the past 50 years.

Education also plays a crucial role in determining an individual's economic mobility. Those with less educational attainment, including high school graduates and college dropouts, have experienced more significant downward mobility, regardless of race.

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