Updated: Mar 2
Bernie Sanders and Elizabeth Warren are fond of preaching that the "Middle Class is shrinking." Of course, they’re betting on their supporters choosing not to look at where those “leaving the middle class” are going. The data are in. People are moving from the lower and middle class into the upper class at an amazing rate.
The idea that Bernie and Warren are trying to drill into their followers heads is that people are slipping out of the middle class and falling into the lower class. This of course supports their assertion that the almighty U.S. government should step in and redistribute wealth and income in America more evenly.
Would Bernie’s supporters feel the same way if he stood up at a rally and said, "The middle class is shrinking! So is the lower class! More Americans are entering the upper class than ever before!"
My guess is that this admission of the truth would fail to make Bernie's point: that heavy taxation is needed to equalize our society. This is exactly why we run a website called BernieLies.com ...
Over the past forty years, for example, the proportion of households making less than $50,000 per year has continued to decline. The percentage of households with incomes under $50,000 fell from 49.5 percent to 39.9 percent, from 1969 to 2018. It's true that households in the $50,000 to $100,000 range also went down, dropping from 38.2 percent to 29.7 percent over the same period. But where did those people go? They weren't going into the under-$50,000 group because that group was shrinking. In fact, there are now more households in the over-$100,000 than in the $50,000-$100,000 category.
Indeed, it looks like many of them moved up into the over-$100,000 income category because the size of that group more than doubled from 12.3 percent of households in 1968 to 30.4 percent of households in 2018. (All of these categories are measured in constant 2018 dollars.)
Breaking out the categories further, we find that the under-$35,000 category fell from 34 percent of households in 1970, to 27.9 percent of households in 2018. The middle categories, from $35,000 to $100,000 were largely flat while the over-$100,000 category more than doubled. The middle-income group isn't disappearing any time soon, but we do find significant growth in the number of households entering the highest-income levels. Those households have to come from somewhere, any many are coming from the middle class. Contrary to the narrative that the middle class is becoming impoverished, this suggests the middle class is actually getting richer.
Today on the podcast we also talked about the infuriating nature of the Libertarian Party. Republican Governor of Kentucky, Matt Bevin, lost his election on tuesday night. Many have blamed the thousands of votes that went to the LP. We, however, do not share this opinion. A vote for the LP is not "a vote for the other side." It's a vote for the LP, and the ideology that Libertarianism is the right way to organize our society. BUT. The LP of Kentucky seemed overjoyed to take part in the demise of Matt Bevin. The question I have is: Do you really think this was a win for Liberty?
Listen to the podcast episode at this link.