The ‘Missing Middle’ in American Life: Can We Get It Back? (2024)

In the lexicon of urban thought, ideas tend to mutate so thoroughly that before long it’s not clear what they mean at all, if anything. In the 1980s, “yuppies” made up a definable category of young city dwellers with education, good jobs and an attraction to a high-spending consumerist existence. Yuppies were replaced by “hipsters,” a term that had a precise meaning in the 1950s but by the 21st century seemed to apply to almost anybody under 40 who lived in Brooklyn, or anyplace remotely like it.

But the attenuation of once-definable terms doesn’t just apply to descriptions of people. “Gentrification,” coined in the 1960s as a pretty straightforward description of neighborhoods that had simply become more affluent, has morphed into a taboo word that refers pejoratively to any negative consequence of neighborhood change. It’s something you may not want to defend in polite company.

Now we are witnessing, almost at warp speed, the dilution of “missing middle” into a concept used loosely to describe a whole variety of urban conditions. When first introduced a few years ago, it was a relatively clear reference to the absence of moderately priced housing in an urban or suburban setting. But it soon came to mean not just the absence of low- or moderate-income residents but the pricing out of families with children, regardless of income, from changing neighborhoods. Then we started to talk about the missing middle as a lack of racial and economic diversity. Now it is sometimes used to refer to the disappearance of the sense of community and consensus that used to derive from the presence of the middle class in comfortable cities and suburbs.


There’s some truth in each of these characterizations. We might be able to forestall the eventual meaninglessness of “missing middle” by trying not to use it at all. But I would suggest something entirely different: the recognition that the term refers to a much broader problem that prevails throughout present-day American life, one that extends far beyond the realm of housing.

It isn’t just the absence of the middle class from increasingly unaffordable neighborhoods — it’s the erosion of the middle class altogether. We have all heard about this; a raft of statistics can be used to flesh it out. A study conducted this spring by the Pew Research Center, for example, found that, using income as a standard of measurement, the middle class had shrunk from 61 percent of Americans in 1971 to 50 percent in 2020. In 1970, Pew reported, adults in middle-income households accounted for 62 percent of aggregate income. In 2020, the corresponding number was 42 percent. During that half-century, the share of U.S. adults identified as upper income rose from 14 percent to 21 percent, while the lower-income share rose from 25 percent to 29 percent. It is the middle class that has gradually been hollowed out, as I am far from the first person to recognize. We might broaden “missing middle” as applied to economic life and call it the decline of the center.

Virtually everyone in the country understands this. It has meant a multitude of changes in everyday life, with perhaps the most iconic victims being the blue-collar residents of Rust Belt cities and towns who have lost well-paying factory jobs and are working for much smaller compensation in relatively menial service employment, or are out of the workforce altogether. It is just one symbol of a hollowed-out middle class; there are many others. But it is as much a “missing middle” phenomenon as anything that has happened in the field of housing.

JUST AS THE CENTER, OR THE MIDDLE, HAS ERODED in housing and income, it has eroded in politics as well. When I was covering Congress a generation ago, there was an identifiable center that determined the outcome of most close votes. The center was made up of pragmatic conservative Democrats, most of them from southern states, and moderate Republicans, largely representing districts in the suburban Northeast and Midwest and open to working across the aisle to get what they wanted. Now both of these blocs are almost entirely gone. Democrats and Republicans are deeply ideological, highly partisan and out of ordinary contact with each other. Another recent Pew Research survey found that the number of members of Congress it labeled as moderate had declined from 160 in 1971 to about two dozen in 2020.

The same transition is painfully obvious at the presidential level. In 1976, when Jimmy Carter won the presidency in a close vote, the margin in most states was narrow. Carter got at least 40 percent in all but six of them. In other words, there was a center. Both candidates stayed pretty close to it. In 2020, when Joe Biden won a close election, he wasn’t even competitive in nearly half the states. Just about every state was deep red or deep blue. The political middle had all but disappeared.

It is difficult for a presidential candidate in either party to campaign in the middle these days and get anywhere. The abysmal failure of Michael Bloomberg’s bid for the Democratic nomination in 2020, a venture that cost him more than a billion dollars, is only one piece of evidence for that.

It is almost as difficult for presidents to govern from the center. This has been true for a long time. Carter’s failed presidency is Exhibit A. No president has really attempted anything similar in the decades since then. Bill Clinton’s highly publicized triangulation in 1995 and 1996 is cited as an example of successful centrism, but in the end it is not a very convincing one. Clinton was a conventional liberal Democrat who took a few steps to the center to get himself re-elected, but it is a mistake to view him as a consistent centrist. Barack Obama made well-meaning attempts to work with Republicans when he got to the White House in 2009, but he soon found it was a waste of time.

Every presidential election year brings explorations of a moderate third-party insurgency, and no doubt there will be one in 2024, but they never proceed very far. There is a good reason for that. They have no significant constituency, even among voters disillusioned with the current polarization. Every reputable poll demonstrates that.

There is also a missing middle in journalism, and perhaps a bit less obviously, in popular culture. In the 1960s and 1970s, the three television networks, the major national newspapers and local media were a centralizing force in establishing public opinion and societal values. Walter Cronkite, the iconic CBS anchorman, was at the center of the center. When Cronkite came out against the Vietnam War in 1968, President Lyndon Johnson is supposed to have remarked that when he lost Cronkite, he had lost the country. Johnson may or may not have said that, but there is no question that Cronkite’s centrist authority was crucial in turning the American people against the Asian war.

IF THE MIDDLE HAS BEEN DISAPPEARING from American society over the last half-century and more, it is fair to ask when and where it actually existed. At the risk of alienating some readers, I think one has to consider the 1950s. I have no intention of minimizing the inequalities and discrimination that existed in that decade, but the fact remains that America had a societal middle that began to erode not long afterward.

In the 1950s, the gap in income and wealth between the affluent and the working and middle classes was many orders of magnitude smaller than it is today. The difference between the paychecks of corporate executives and those of their mid-level employees was tiny compared to what prevails now. “The rich,” Scott Fitzgerald wrote, “are very different from you and me.” There may be some truth to this, but it was far less in 1957 than it is in 2022. The middle-dominated American society of those years was presided over by a president who not only practiced centrism in his policies, but believed in it sincerely as a public good.

For all the inequities of the Eisenhower decade, it contained a middle that provided an umbrella of continuity and stability for those who lived under it. That middle is now missing. This is much more than a housing issue, and it is much more deeply rooted and intractable. It’s no small irony that as most of the world is growing its middle class and severe poverty is declining even in the Third World, our own middle is shrinking and our center is eroding away. Is there anything practical that we can do about it?

Well, there certainly are a few things that will help. We need to build a lot more housing, big apartment buildings along commercial corridors more than the duplexes in residential neighborhoods that we keep arguing about. We need to find a way to make sure that wages don’t continue to erode in real terms as they did for decades after the mid-1970s. We can make moves to jump-start domestic manufacturing. But more cosmically, we need to accept that we are living in an era of broad social polarization. These don’t last forever. This country endured one in the late 19th century, and it was in large part ameliorated by the Progressive Era, the Depression and World War II. If history is any guide, this one will eventually soften up as well, though it may take some societal crises along the way. The missing middle is out there somewhere. One day we are likely to find it.

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The ‘Missing Middle’ in American Life: Can We Get It Back? (2024)

FAQs

Is the middle class in the U.S. shrinking? ›

In 2021, just 50% of American adults lived in middle-income households—down from 54% in 2001, 59% in 1981, and 61% in 1971.

Are you still in the middle class? ›

As of 2022 (the most recent Census data), the average median household income in the U.S. was $73,914, meaning the national range for the middle class is roughly $49,271 to $147,828. Across the nation's largest cities, the range is between $51,558 and $154,590, according to SmartAsset.

Which of the following is a reason for the shrinking of the middle class in the United States? ›

One of the reasons for the shrinking of the middle class in the United States is the outsourcing of jobs to other countries. Companies often choose to move their operations to countries with lower labor costs, which leads to job losses and lower wages for workers in the US.

When did the middle class disappear? ›

The share of aggregate U.S. household income held by the middle class has fallen steadily since 1970. The widening of the income gap and the shrinking of the middle class has led to a steady decrease in the share of U.S. aggregate income held by middle-class households.

What is the middle class in America in 2024? ›

In 2024, a large U.S. city's middle-class income averages between $52,000 and $155,000, with the median household income across all 345 cities at $77,345, making middle-class income limits fall between $51,558 and $154,590, SmartAsset noted.

What is the top 5 income in the US? ›

How much do you need to earn to be in the top 5% income bracket? For those in the top 5%, the figure rises even more. According to the same research, those in the top 5% earned an average of $335,891 in 2021. This is an increase of around $19,000 from the previous year.

What is the poor class income? ›

Where you rank by income. According to the Census Bureau's Income in the United States: 2022 report, the median household income is $74,580 (a 2.3% decline from 2021), while household income levels for each class level are as follows: Lower class: less than or equal to $30,000. Lower-middle class: $30,001 – $58,020.

How much income is considered middle class? ›

According to the latest Census Bureau data from 2022, the median household income in the U.S. was $74,580. Based on that number, if you earn between $50,000 and $150,000 a year, you qualify as middle class.

What is the middle class like today? ›

Middle-class households have an income that is two-thirds to double that of the U.S. median household income, after it has been adjusted for household size, which in 2021 was $70,784, according to the U.S. Census Bureau.

What is a good household income? ›

“Good income is relative to the average household income in America, which is $78,000 right now.” Real median household income in the U.S. was $78,250 in 2019 and fell to $74,580 in 2022, according to the Census Bureau. "You're not a bad person. You're not a horrible income earner.

What income is considered upper class? ›

Upper middle class: Anyone with earnings in the 60th to 80th percentile would be considered upper middle class. Those in the upper middle class have incomes between $89,745 and $149,131. Upper class: Finally, the upper class is the top 20% of earners and they have incomes of $149,132 or higher.

What is considered rich? ›

Someone who has $1 million in liquid assets, for instance, is usually considered to be a high net worth (HNW) individual. You might need $5 million to $10 million to qualify as having a very high net worth while it may take $30 million or more to be considered ultra-high net worth.

What are the five income classes? ›

One way some researchers divide individuals into economic classes is by looking at their incomes. From that data, they split earners into different classes: poor, lower-middle class, middle class, upper-middle class and wealthy.

What percentage of Americans are upper class? ›

The American upper class is distinguished from the rest of the population due to the fact that its primary source of income consists of assets, investments, and capital gains rather than wages and salaries. The American upper class is estimated to include 1% of the population.

What is the average income per household in the United States? ›

Highlights. Real median household income was $74,580 in 2022, a 2.3 percent decline from the 2021 estimate of $76,330 (Figure 1 and Table A-1).

What percentage of U.S. citizens are middle class? ›

-- Fifty-four percent of Americans identify as part of the middle class, including 39% who say they are “middle class” and 15% “upper-middle class.” Another 31% consider themselves “working class” and 12% “lower class.”

How much wealth has the middle class lost? ›

It was a golden era for the middle class, which began shrinking pre-pandemic. But that wealth boom has been fading: In mid-October, the average wealth of the middle 40% had dropped by 7% since March, according to Berkeley's economists. That percentage represents an estimated decline in wealth by around $27,000.

Is the upper middle class getting squeezed? ›

Over the first three months of 2022, upper-middle-class families lost a bigger chunk of their stock portfolios than the people who make more than them, according to the Federal Reserve. Since the pandemic started, they saved less than most of the people who make less than them, according to Moody's Analytics.

For what reason is a shrinking middle class a major concern to the economy? ›

For what reason is a shrinking middle class a major concern to the economy? Loss of purchasing power means costs are shifted to higher income workers. Loss of purchasing power means less money to spend in the economy. More purchasing power means the economy depends more on higher income workers.

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