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The Student News Site of University of Wisconsin-Madison

The Badger Herald

The Student News Site of University of Wisconsin-Madison

The Badger Herald

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Report finds Wisconsin ranks worst in country for declining middle class since 2000

Wisconsin ranks the worst in the nation in terms of a shrinking middle class, according to a recent report from The Pew Charitable Trust.

In 2000, 54.6 percent of Wisconsin families fell within the middle class category, meaning they were between 67 and 200 percent of the state’s median income. But in 2013, only 48.9 percent of Wisconsin families landed in that category.

That decline of nearly six percentage points is the worst in the nation.

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“It’s pretty disturbing,” Laura Dresser, the associate director of the liberal Center on Wisconsin Strategy, said. “Wisconsin is falling faster than the national decline.”

But as Gov. Scott Walker’s spokesperson, Laurel Patrick, pointed out, he was only in office for three of the 13 years studied.

She told the Capital Times that Wisconsin had, in fact, seen income growth in the middle class from 2011 to 2013, with that growth ranking Wisconsin 15th in the nation.

Patrick also pointed to Wisconsin ranking 12th in 2013 for its personal income growth and that wage growth was also 17th best.

“Other income indicators also that show Wisconsin is heading in the right direction under Governor Walker,” Patrick told the Capital Times.

Robert Kraig, executive director of Citizen Action of Wisconsin, said, however, that the Pew report is a wake-up call for the state of Wisconsin.

While there are several national and international factors that impact the economy, Kraig said, the state of Wisconsin needs to respond.

“Even if state policy is not fully the cause of this, state policy should help remedy this,” Kraig said. “The economy is human-made. It’s a vehicle that needs to be driven.”

The past 15 years have seen a major decline in U.S. manufacturing, which has impacted the Midwest economy more than other parts of the country, Dresser said.

This could explain why the whole region is below the national average in terms of a shrinking middle class, Dresser said. Wisconsin has lost three of every four manufacturing jobs since 2000, she added.

“Fifteen years is pretty unusual, noteworthy and scary when the national economy has a declining middle class,” Dresser said.

This kind of decline incites fear in citizen’s financial security and their ability to secure retirement funds, Dresser said.

There may be a turnaround in the next fifteen years, Dresser said, but it will be a long time until Wisconsin gets back to where it was in 2000.

“I don’t think this is permanent,” Dresser said. “But I don’t think we are going to see strong upward growth anytime soon.”

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