From 1980 to 2023: The Decades-Long Erosion of Middle and Low-Income America

The period between 1980 and 2023 marks a sustained, decades-long erosion of the economic footing for middle and low-income Americans. The middle class’s share of national income plummeted to 42.5% of the top percentile, while the extreme poverty population tripled.
This decline is not accidental; it is the product of systematic policy choices, including tax laws and cuts to social safety nets, enacted across multiple US administrations. These decisions structurally favored the wealthy over equitable growth.
The severity of the crisis is clearest at the bottom: the poorest 10% of Americans now receive only 1.8% of total national income, a share smaller than that received by low-income groups in nations like Nigeria and Bangladesh, showcasing the policy-driven nature of US inequality.