US News

Middle class falls on hard times as country’s wealthiest flourish

America’s vaunted middle class, once the most affluent in the world, has fallen on hard times.

While the nation’s wealthiest residents are still worth more than their global counterparts, the middle class has lost its place at the top of the global order.

According to economic data analyzed by The New York Times, America’s middle class has fallen behind Canada’s. While economic growth in the United States is equal to or stronger than growth in other countries, only the wealthiest Americans have benefited from those gains, according to the report.

America’s middle class is still wealthier than Europe’s, but that lead has been slipping significantly over the past 10 years.

The United States has maintained its lead as the world’s richest large country. But America’s poor are even worse off than poor people in Europe and Canada — a total reversal from 35 years ago.

Doug Holtz-Eakin, a former head of the Congressional Budget Office, cited two trends for the declines.

Canada and Germany came out of the recession better than America, he said.

And the rest of the world has narrowed the gap with America. He noted that the United States was the sole economic power after World War II because Europe and Asia were devastated.

“The rest of the world is catching up,” Holtz-Eakin told The Post.

Holtz-Eakin, economic adviser to Sen. John McCain’s 2008 presidential campaign, said President Obama has failed to turn it around.

“If you have six years of a deep economic recession, everyone suffers, and bad policies haven’t helped,” he said.

“We haven’t seen any real income growth for people who have jobs. We’re talking about higher taxes and the Affordable Care Act.”