The Middle Class Is in Trouble, and These Numbers Prove It

[President Obama] We're in the middle

of the longest streak of private sector job creation

in history.

(applause)

More than 14 million new jobs,

the strongest two years of job growth

since the 1990s.

An unemployment rate cut in half.

[Narrator] He's right.

The American Economy is clawing its way back

from the recession,

but something's happening to the middle class.

It's shrinking.

How is that possible?

Let's look at the numbers.

And we'll begin with median household income,

which over the years has been trailing

behind US GDP growth,

even falling in some periods.

That means that while the US Economy grows,

not everyone's bank account grows with it.

And if we go back to the 1970s,

those considered middle-class households

were earning around $9,000,

which if adjusted to inflation,

is just over $53,000.

Fast forward to the past couple of years,

middle-class households are making only $51,759.

That's $1,942

less in adjusted dollars.

Overall, the number of Americans regarded

as middle-class has shrunk

from 61% of the population in the 1970s

to just under 50% now.

Yes, that's because some of the population got richer,

but more folks have become poorer too.

Sure, the prices of gadgets like flat-screen TVs

and laptops are more affordable than ever,

but college tuition, child care, health care

and housing costs are on the rise.

The average cost of a house in the United States

has increased five folds since 1970,

which is well over inflation

and child care for two kids generally costs

even more than rent.

If we break it down simply,

the price of a dozen conventional eggs

would cost four and 1/2 times more

if it increased as fast as college tuition has

over the past three decades.

So where's the share of money going?

It's shifting to the top earners.

Upper income households hold half of the country's wealth,

but only account for 3% of the population

and get this,

the 20 richest Americans have more money

than the bottom half of the American population.

That's over 150 million people.

Okay, okay,

before you completely lose all hope,

there is some good news.

Median family income rose more from 2014 to 2015

than it had in 17 years.

2015 also brought the largest drop

in national poverty in 16 years

and for the first time ever,

more than 90% of Americans finally have health insurance.

Steps in the right direction, yes!

But the 45th President of the United States

has a big task ahead.