The middle class gets almost half of U.S. safety-net payments

Apr 2013
38,306
26,298
La La Land North
#1
Why it matters:
As wages have remained stagnant, more people can't afford middle-class basics, and income inequality grows, the middle class is increasingly relying on the federal safety net, according to the new report by Brookings Institutions' Future of the Middle Class Initiative. "It is a mistake, now, to think of welfare as something just for the poor," Richard Reeves, the report's author tells Axios.
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The trend is most clearly seen in the second and middle income quintiles, where the average household income was $31,087 and $54,041 in 2014, according to the Tax Policy Center.
  • One of every $7 spent on social program benefits went to families in the middle quintile of the income distribution in 2014.
Federal safety net money is also making up a greater share of lower-middle class incomes, according to the report. Meaning that not only is more money going to the middle class, some middle class families depend on it more.
One key finding: Health care is a big driver. Medicaid expansion has made more lower-middle income Americans eligible for the program, and now less than half of Medicaid spending goes to the lowest quintile.
  • Medicaid spending on elderly households (65 years or older) has tripled since 1979, and around 60% of it went to the elderly in the middle class in 2014, the study found.
  • Increased subsidies for the Affordable Care Act has also contributed to the overall trend.
  • There has also been notable growth in the share of Supplemental Nutrition Assistance Program (SNAP) benefits that have gone to those lower-middle income quintiles, according to the report.


Data: Congressional Budget Office; Chart: Chris Canipe/Axios
The middle class gets almost half of U.S. safety-net payments
 
Jun 2018
5,998
1,382
South Dakota
#2
Appears to be driven mostly by boomers whose retirement savings have been raped by the enonomic disaster of the period from 1999 to 2016. The shiploads of money wasted on Obamacare are a big factor too. Not a lot of wiggle room in there is there.
 
Likes: Sabcat
May 2018
6,643
4,490
Chicago
#3
Appears to be driven mostly by boomers whose retirement savings have been raped by the enonomic disaster of the period from 1999 to 2016. The shiploads of money wasted on Obamacare are a big factor too. Not a lot of wiggle room in there is there.
Trump and the GOP are going to make doubly sure that there's no wiggle room at all next time this happens.
 
Nov 2012
41,006
11,805
Lebanon, TN
#4

I am glad to see you have accepted to Trumponomics.. The First President since REAGAN where REAL WAGES have increased for the Working class outpacing inflation..


Thanks RNG for allowing people to see that TRUMP is the president that has done MORE for the working class since REAGAN. thanks to tax cuts. 2500/ year increase in bring home thanks to tax cuts ON TOP of Increase in wages.
 
Jul 2014
14,925
9,154
massachusetts
#5
I am glad to see you have accepted to Trumponomics.. The First President since REAGAN where REAL WAGES have increased for the Working class outpacing inflation..


Thanks RNG for allowing people to see that TRUMP is the president that has done MORE for the working class since REAGAN. thanks to tax cuts. 2500/ year increase in bring home thanks to tax cuts ON TOP of Increase in wages.
Actually, real wages have fallen since Trump took office
 
Likes: imaginethat
May 2018
4,096
3,045
USA
#9
For the Trumpanzee symps here: wages are increasing SLOWER than inflation. That means a DROP in spending power aka "real wages".

You are welcome. Come to me for all your "actual factual" needs...
 
Likes: goober

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