Report: California's middle class shrinks to below 50 percent

[Newsjock]

Source: Contra Costa Times

Not even half of California's families are middle class anymore as the recession and its aftermath widened the gap between rich and poor, according to a new report.

Three decades ago, 60 percent of California families could count themselves in what the Public Policy Institute of California calls the "middle-income" bracket. Not rich but doing reasonably well, the middle class formed a comfortable majority and shared the state's prosperity.

But the portion of middle-income families slipped to 49.7 percent last year, according to the nonpartisan research group's study. Using census figures and a federal standard-of-living measure adjusted for inflation, the report defines the middle-income bracket as families who earn $44,000 to $155,000 a year.

"It really reflects a decades-long trend, at least three decades of shifts in our economy," said report co-author Sarah Bohn.

Read more: http://www.mercurynews.com/top-stories/ci_19493664