The Indicator from Planet Money Class myths, an influx of e-ships, and pricey Olympics tix!
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Apr 10, 2026 AI Snips
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Upper Middle Class Now A Much Larger Share
- The American upper middle class has grown to 31% of families using a $133k–$400k threshold for a three-person household.
- In 1979 only 10% met that threshold, showing movement from middle to upper middle partly driven by rising household dual incomes.
Household Gains Mask Individual Wage Stagnation
- The shrinking 'middle middle' doesn't mean overall prosperity for individuals because household incomes rise when more members work.
- Women's increasing labor force participation boosted household income even as many men's wages, especially without college degrees, stagnated.
Income Growth Is Adjusted For Rising Living Costs
- Income-share statistics are adjusted for rising costs like housing and education, so the shift into upper middle class accounts for those price changes.
- Still, households now spend larger budget shares on housing, education, and health care despite the income adjustments.