Why The Middle Class Is No Longer Middle Class

Why The Middle-Class Is Disappearing
The American middle class, once a symbol of the American Dream, has undergone significant transformations since the 1970s. The Federal Reserve revealed that 33% of middle-income adults cannot afford an unexpected expense of $400, highlighting the economic fragility of this group. The Pew Research Center found that the percentage of American adults belonging to the middle class decreased from 61% in 1971 to 50% in 2023. This trend reflects a change in the economic composition and perception of the middle class in the U.S., with the rise of the "squeezed middle class" facing difficulties in maintaining their standard of living.

Costs of housing, education, healthcare, and other essential services have increased, while incomes have not kept pace, putting pressure on middle-income families. The situation has become more complicated for millennials, with only 60% belonging to middle-income households in their 20s, compared to almost 70% of baby boomers at the same age. Households with a family income of just over $100,000 face financial difficulties due to taxes, insurance, student loans, and the high cost of living.

Debt has become a burden for many American families, with total household debt reaching a record $16.5 billion in the fourth quarter of 2023. Student loan debt, amounting to $1.6 billion, is a significant factor in middle-class precarity. Homeownership has become unattainable for many, with nearly 23% of homeowners considering buying a home a financial mistake.

The erosion of stability and security that defined the middle class has profound implications for American society. The promise of upward mobility, a central component of the American dream, seems increasingly distant for many families. The transformation of the American middle class reflects profound changes in the economic and social structure of the United States, and its future is a central issue for the fate of the American dream.

CHAPTERS:
0:00 Why The American Middle-Class Is Disapearing
2:30 Americans Struggling To Stay In The Middle Class
3:32 American Debt Crisis
4:01 American Student Loan Debt Crisis
4:36 Americans Can't Afford A Home
5:13 Americans Struggling To Make Ends Meet
5:45 The Future Of The Middle Class
6:47 The Shrinking Of The Working Middle-Class

Executive Producer: Danny Pasquel
Produced by: Samantha Harvey
Edited by: Jacob Smith
Animation: Charlotte Brown
Additional Footage: Getty Images

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[Pengasmon]

There’s no middle class just working class or owning class

[name]

Just affording a 1br apartment is now the American 'dream'.

[LostMySauce]

How can you be considered "middle class" and not have $400 for an emergency expense? Wild.

[youngwze]

When I was growing up in the '80's my Mother used to say "In the future there will be no middle class...there will only be rich and poor."...

[timboc]

Middle class is now called the working class poor

[mrxiong]

No middle class. Just poor and rich class

[heydennisha]

If the gov says 50% are middle class. At that moment you know the real number is way lower than that 😂.

[SplendidNinja]

There is no middle class, just owners and workers.

[terrisewell]

People should remember: poverty is not an accident, a coincidence or an inevitability. It is something which is manufactured by the ruling class.

[Joefromthevalley]

30 years old and I can't move out. I'm a lawyer

[jogmas]

Can’t afford a house, can’t afford a new car, can’t afford nuttin

[donnystrife]

Food for thought. I remember in the 80's it was pretty common to do your own home repairs even bigger jobs like roofing. Had one neighbor completely build their house diy. Driving cars until there wasn't much left. Houses stayed nice and well maintained. Now it's new cars and houses that seem to be uncared for. Priorities have changed.

[lynnhensley]

In 1970 I was in high school. 2 bedroom house, 3 kids. Siblings shared a small bedroom. I sleep in a sunroom. That was my bedroom. 1 bath room, no shower, tub only. No closet in my sunroom. No central air, no dishwasher, no dryer, 1 phone, black and white tv.
1 very old car, 15 years and 1 5 year old car. No ac and only am radio. We would have been considered lower middle class. We all 3 of us went to college.

[WeKnowIslam]

In the coming generation there is only be to two class 1. Is Rich and 2. Poor

[taffyalusa]

I agree it's very expensive to live and times are tough for families. But the spending above one's means has been occurring for a while. Consumerism is out of control, like an addiction people can't stop. If people pulled back and refused to pay the high prices other than necessities prices would contract. Housing, non essential foods, new cars etc.

[supremeakuma]

Being born in a RICH family is the biggest flex now... because working "Hard" to get ahead in life is DEAD

[edhcb]

Today the middle class drives for Uber Eats and then when they get home they order dinner from Uber Eats!

[RaymondKeen.]

Building wealth from nothing involves consistent saving, disciplined spending, and strategic investments. Begin by creating a budget to track expenses and identify areas for savings. Prioritize paying off high-interest debt and establishing an emergency fund. As you build a foundation, start investing in low-cost options like index funds, and focus on continuous learning and improving your skills for better income opportunities.

[jorlowsky]

Maybe stop buying sh*t that you can barely afford. I’ll own a home, but never have I thought that a home was an investment. What a joke.