Think the US Economy Is Unfair? Blame the Upper Middle Class
Majorities of voters, in both parties, think the gap between the rich and poor is a big problem and that the rich have too much power.
The rise of the upper middle class. In the 1960s and ‘70s, the US had a robust middle class, and the national income distribution looked like a bell curve.
More people moved into the 75th and 90th percentiles of household income. That translates into earnings between $150,000 and $300,000, or even $400,000 if you live in an expensive city.
This is all mostly a positive development. But it feels like a crisis because the economy has not fully adjusted to this new income distribution.
Too many affluent people are chasing a limited number of high-end goods and services city apartments, an elite-university education, luxury vacations, innovative health care, concert and sports tickets, and so on.
Consider housing. A popular narrative is that a lack of supply is why home prices have increased 70% since the 1980s. There are more affluent buyers whose wealth has grown faster than the number of available homes.
If you are not a member of the new mass affluent class, then you are getting outbid on a house that you may want, or you may have to settle for a smaller home
A market exists for $1,000 Taylor Swift tickets because many families are willing and able to pay that much for an event with a limited number of seats.
Economies evolve. When they change quickly, the allocation of resources can be thrown out of equilibrium. Sometimes the market adjusts. That becomes less likely when the frustrated mass affluent turn to populism.
Allison Schrager Bloomberg February 12, 2026
The invisible line beyond which many Americans tumble out of the middle class.
As one commentator widely credited with popularizing the phrase put it: many Americans appear comfortable on the surface — living in large homes and driving pickup trucks — but are in reality just one bad shock away from bankruptcy, or worse.
https://englundmacro.blogspot.com/2026/02/bessent-kill-line-and-k-shaped-economy.html
Jag beundrar inte bara Gillian Tett. Även Allison Schrager är smartare än en femteklassare; Birkin bags“Je t’aime … moi non plus,”
https://englundmacro.blogspot.com/2026/01/jag-beundar-inte-bara-gillian-tett-aven.html
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