It's easy to understand why people may not believe that prosperity has increased across the board. I also used to believe this, but after looking at the data I'

It's easy to understand why people may not believe that prosperity has increased across the board. I also used to believe this, but after looking at the data I'm not entirely sure what it is that drives our perception. This [1] paper from the urban institute is something I found precisely when looking to put specific numbers to the hollowing out of the middle class and the overall decline, or at least stagnation, of prosperity. The paper does describe that hollowing out in clear detail. In 1979 the middle class controlled 46% of all income and the upper/rich classes controlled 30%. Today (as of 2014) the rich and upper class control 63% and the middle class's share of society has been reduced to 26%. There's even been a chiseling out in the size of the middle class declining from 38.8% to 32%. And that's pretty much where most articles tend to leave off the state of economic change. It's all true and it sounds pretty grim. But context, as always is, is everything. This is the change in the size of each economic group from 1979 to 2014 as a percent of the total population: - Rich: 0.1% -> 1.8% - Upper Middle Class: 12.9% -> 29.4% - Middle Class: 38.8% -> 32% - Lower Middle Class: 23.9% -> 17.1% - Poor or Near-Poor: 24.3% -> 19.8% The reason the top's share of income has increased is because people are moving, at an incredibly rapid pace, from the lower classes the upper classes. Statistics like this are certainly subject to biased interpretation and 'massaging' - though I think the paper is extremely transparent in their methodology. But if one is curious about the source, wiki has a section on the political stance of the Urban Institute [2]. I found this all eye opening to the point that it actually changed my worldview. Economically we are doing something very right. [1] - https://www.urban.org/research/publication/growing-size-and-incomes-upper-middle-class https://www.urban.org/research/publication/growing-size-and-... [2] - https://en.wikipedia.org/wiki/Urban_Institute#Political_stance https://en.wikipedia.org/wiki/Urban_Institute#Political_stan...