- the source for market opinions


September 30, 2017 | Who’s This ‘Middle Class’ Aanyway?

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

For someone with hundreds of millions of dollars, like ex-Goldman alumnus Cohn, $30 to $45k is a rounding error.  But for a so-called financial wizard advising the government purportedly on how best to ‘help the middle class’, it’s revealing and super embarrassing that he overestimates the average household income by 26% and the average median income by 45%.  Not credible leadership.

Economic advisor Gary Cohn told reporters on Thursday that a typical four-person American family bringing in $100,000 a year would save $1,000 under the Republicans’ proposed tax reform effort, which they could use to pay for a new car or a kitchen.

In actuality, the average American family makes $74,000 a year before taxes, or about $26,000 less than that, according to the Bureau of Labor Statistics. The median American family income is roughly half of Cohn’s estimate, or only about $55,000.

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

September 30th, 2017

Posted In: Juggling Dynamite

One Comment

  • Avatar Ted Catlin says:

    I’m no fan of Cohn or Goldman but I think you are splitting hairs here. He said “…a typical four-person American family bringing in $100,000 a year would save $1,000 under the Republicans’ proposed tax reform…” which is much different than saying ALL middle class families bring in $100,000 In all likelihood there are many that do with both husband and wife working.

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.