Middle-class areas shrink as America divides into 'two-tiered society' of rich and poor

The portion of American families living in middle-income neighborhoods has declined significantly since 1970, according to a new study, as rising income inequality left a growing share of families in neighborhoods that are mostly low-income or mostly affluent.

The study, conducted by Stanford University and scheduled for release on Wednesday by the Russell Sage Foundation and Brown University, uses census data to examine family income at the neighborhood level in the country’s 117 biggest metropolitan areas.

The findings show a changed map of prosperity in the United States over the past four decades, with larger patches of affluence and poverty and a shrinking middle.

In 2007, the last year captured by the data, 44 percent of families lived in neighborhoods the study defined as middle-income, down from 65 percent of families in 1970. At the same time, a third of American families lived in areas of either affluence or poverty, up from just 15 percent of families in 1970.

The study comes at a time of growing concern about inequality and an ever-louder partisan debate over whether it matters. It raises, but does not answer, the question of whether increased economic inequality, and the resulting income segregation, impedes social mobility.

Much of the shift is the result of changing income structure in the United States. Part of the country’s middle class has slipped to the lower rungs of the income ladder as manufacturing and other middle-class jobs have dwindled, while the wealthy receive a bigger portion of the income pie. Put simply, there are fewer people in the middle.

Gentrification
But the shift is more than just changes in income. The study also found that there is more residential sorting by income, with the rich flocking together in new exurbs and gentrifying pockets where lower- and middle-income families cannot afford to live.

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This is neo-feudalism.  Our economic and govt policies are creating this divide as well as the laws which allow the rich to get away with plundering countries of wealth while the poor go to prison for minor offenses and victimless crimes.

In another day and time, my family would easily fall under the middle class bracket and might even be living rather comfortably I might add. Boy, have things changed. As fuel, food, health and the other basic necessaties go up, our standard of living is creeping downward. We are just getting by like most of us do, the 99%..... the working poor. 

@Nikki: Well said Nikki; Indeed, this is neo-feudalism, and we're the villeins! They annex countries,it seems, for sport and deprive the masses of nutritious food, livable wages, and adequate housing...for sport!  In colloquial terms: The rich get richer and the poor get poorer. @Tara: It seems these days, you can't afford a new attitude, let alone the basic necessities. A thanksgiving dinner(even though I don't celebrate the "holiday") is now considered a privilege(http://www.nuwireinvestor.com/articles/us-drought-drives-up-food-p...). These bankers have fettered,flogged, and mangled us with the ineptitude of the money system, causing a class/caste system to take shape. Its never enough for these avaricious demons.

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