Squeezed Middle Class

Governments must act to help struggling middle class, says OECD

Governments need to do more to support middle-class households who are struggling to maintain their economic weight and lifestyles as their stagnating incomes fail to keep up with the rising costs of housing and education, according to a new OECD report.

Under Pressure: The Squeezed Middle Class says that the middle class has shrunk in most OECD countries as it has become more difficult for younger generations to make it to the middle class, defined as earning between 75% and 200% of the median national income. While almost 70% of baby boomers were part of middle-income households in their twenties, only 60% of millennials are today.

DAVOS/SWITZERLAND, 27JAN12 – Angel Gurria, Secretary-General, Organisation for Economic Co-operation and Development (OECD), Paris; Global Agenda Council on Water Security looks on during the session ‚Fixing Capitalism‘ at the Annual Meeting 2012 of the World Economic Forum at the congress centre in Davos, Switzerland, January 27, 2012. Copyright by World Economic Forum swiss-image.ch/Photo by Sebastian Derungs