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Young Grow Poorer While Old Get Richer

Recession socks Americans born after 1955

By Kevin Spak, Newser Staff

Posted Sep 18, 2009 12:49 PM CDT

(Newser) – Young and middle-aged people, particularly men, saw their incomes plummet from 2000 to 2008, leaving many age groups at 30-year nadirs, new Census data show. The recession has exacerbated the problem, widening the gap between young and old at an unprecedented rate, USA Today reports. Worst hit were those in their peak earning years—between ages 45 and 54—whose average household income fell $7,700 to $64,349.

Those born before 1955 have enjoyed historic income growth for 4 decades. Everyone born after that is now shrinking. What caused the gap?

Waiting in line for good jobs: Older people are working longer, keeping young people out of top jobs.
Global competition: Low-income workforces overseas have depressed wages for newly hired young people.
Retirement: Social Security and private pensions have given the elderly record incomes.

Young people are getting a smaller and smaller piece of the pie. (Shutterstock)

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COMMENTS

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Showing 3 of 47 comments

freethemall

Sep 20, 2009 12:29 PM CDT

I see how it is! Ok, I'll butt out. (just kidding).

zackmasson

Sep 20, 2009 12:23 PM CDT

No student left behind might have worked it's self in there too.

super_soft_wizard

Sep 19, 2009 12:04 PM CDT

It's also harder for this generation (21-35) to break into a career unless they have a specialized degree. For folks older than that, most college degrees would suffice to get you an entry level job that leads to a career. Nowadays, you'd better have a degree in IT or engineering or accounting or education.

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USA Today (Source Grid »)

Bush administration • middle class • retirement • income disparity • young men • income gap • young people

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Middle-Class Neighborhoods Dying Off

Stanford study says numbers have dropped sharply since 1970

(NEWSER) - A major new study from Stanford finds that America's middle class is shrinking in a big way, reports the New York Times . The researchers looked at 117 of the nation's biggest metropolitan areas and discovered that 44% of families live in areas defined as middle class, down from 65% in 1970. Meanwhile, the number of families living in affluent neighborhoods doubled to 14%, while those in poor neighborhoods rose from 8% to 17%, notes Reuters . In short, the income gap appears to be widening. More»

Income of Top 1% Shot Up 275% Since 1979: CBO

And in the process more than doubled their share of all income

(NEWSER) - The top 1% of income earners saw their after-tax income shoot up a whopping 275% between 1979 and 2007, and in the process more than doubled their share of all income, jumping from 8% to 17%, according to a new report from the Congressional Budget Office . The rest of the top 20% saw their income grow 65%, while the middle three-fifths’ income rose 40% and the bottom fifth just 18%. All numbers are adjusted for inflation. More»

Paycheck Data Dismal in 2010

...Unless you were a millionaire

(NEWSER) - The Social Security Administration quietly released payroll data for 2010 yesterday, and they were “in a word, awful,” writes David Cay Johnston at Reuters —assuming you’re not a millionaire, that is. The number of people making at least $1 million rose by 20%, jumping from 78,000 to almost 94,000. But for everyone else, there were fewer jobs and they paid less. The median paycheck fell 1.2% to $26,364, or $507 a week, its lowest level, adjusting for inflation, since 1999. More»

One in 3 Falling Out of Middle Class

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(NEWSER) - Downward mobility is rampant in the US, with a third of Americans who grew up in the middle class falling out of it as adults, according to a new Pew Study ( pdf ). “A middle-class upbringing does not guarantee the same status over the course of a lifetime,” the report reads. Those who weren’t married, hadn’t gotten a college degree, or used drugs were especially likely to fall down the income ladder, the Washington Post observes. More»

Millionaires Have 39% of the World’s Money

Less than 1% of the world's population controls almost half of the money

(NEWSER) - If you're wondering where all your money has gone, odds are a millionaire added it to his or her pile. Although millionaires make up just 0.9% of the world's population, they control 39% of its wealth—up 2% since 2009—according to a report by Boston Consulting Group. Their collective wealth has risen from $41.8 trillion to $47.4 trillion, according to the Wall Street Journal . More»

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Young Grow Poorer While Old Get Richer

Recession socks Americans born after 1955

OTHER STORIES ON OUR RADAR

Bush administration • middle class • retirement • income disparity • young men • income gap • young people

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More Newser Stories

Middle-Class Neighborhoods Dying Off

Stanford study says numbers have dropped sharply since 1970

Income of Top 1% Shot Up 275% Since 1979: CBO

And in the process more than doubled their share of all income

Paycheck Data Dismal in 2010

...Unless you were a millionaire

One in 3 Falling Out of Middle Class

New study shows downward mobility is rampant

Millionaires Have 39% of the World’s Money

Less than 1% of the world's population controls almost half of the money

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Young Grow Poorer While Old Get Richer

Recession socks Americans born after 1955

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OTHER STORIES ON OUR RADAR

Bush administration • middle class • retirement • income disparity • young men • income gap • young people

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Middle-Class Neighborhoods Dying Off

Stanford study says numbers have dropped sharply since 1970

Income of Top 1% Shot Up 275% Since 1979: CBO

And in the process more than doubled their share of all income

Paycheck Data Dismal in 2010

...Unless you were a millionaire

One in 3 Falling Out of Middle Class

New study shows downward mobility is rampant

Millionaires Have 39% of the World’s Money

Less than 1% of the world's population controls almost half of the money

About Us

Site

Newser By Users

Community

Site Maps

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More News

What is Newser?