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Middle class shrinking around world

CNN OniiNg
America's middle class families aren't the only ones having a tough time these days.
Middle-income households are disappearing in developed countries around the world, according to a new report by the Organisation for Economic Co-operation and Development.
The study, titled "Under Pressure: The Squeezed Middle Class," laid out a litany of problems affecting middle-income households. And it warned that this could have serious consequences for nations' economic growth and social fabric.
"Today the middle class looks increasingly like a boat in rocky waters," said OECD Secretary-General Angel Gurria. "Governments must listen to people's concerns and protect and promote middle-class living standards."
The middle class has been under stress for years, helping fuel the rise
of progressive Democrats in the United States, who are seeking to increase taxes on the rich to provide a stronger safety net — including universal health care. But while many presiden-
O Rising inequality in income is part of the reason for the trend
O Younger people facing hard time to achieve middle class status
tial candidates point to Europe as a model, the OECD report shows that problems exist there too.
The share of people in middle-income households in developed countries fell from 64% in the mid-1980s to only 61% by the mid-2010s. However the declines were larger in several countries, including the United States, Israel, Germany, Canada, Finland and Sweden.
In the United States, just over 50% of the population is middle class, much smaller than most other developed countries.
The report considers households earning between 75% and 200% of the median national income as middle class.
Rising income inequality is part of the reason for the trend. Over the past 30 years, median incomes in OECD countries increased a third less than the average income of the richest 10%, the report found.
Younger people are having a harder time achieving middle class status than those in previous generations. Being middle class once meant living in a comfortable house and affording a rewarding lifestyle, thanks to a stable job with career opportunities, the report said. It was also a basis from which families aspired to an even better future for their children.