Why The Middle-Class Is Disappearing

The middle class was once a symbol of the American dream. It meant financial security and an opportunity for a better future. But that portrait of the American middle class is quite different today. A survey in 2018 found that a third of middle-income adults don’t have as much as $400 to cover an unexpected expense. And while the middle-class lifestyle grows more expensive and uncertain, it’s also moving beyond the reach of younger generations.

“It was at least a secure category,” said Alissa Quart, author of ‘Squeezed: Why Our Families Can’t Afford America,’ [but] there are certain kinds of assumptions around being a middle-class person” that have “shattered” over the past 10 to 15 years.

Some middle-income households and experts believe a lack of supporting policies might be to blame for the drastic changes.

“There is no help whatsoever,” according to Chantal Jacob, a middle-income parent from suburban Texas. “There’s no policy in place to assist people. And I feel like as soon as you get a job, as soon as you’re working, they’re just like, ‘That’s all you need, a job. You got it, go forth and have at it.’ ”

Lawrence Mishel, a distinguished fellow at the Economic Policy Institute, shares that sentiment. “It’s not that the economy got worse, it was that there were policy decisions made so that the economic growth did not filter down to the vast majority.”

The Biden administration has been pushing for several bills aimed at supporting middle-income households, including the $1 trillion bipartisan infrastructure legislation passed in November 2021 and the Build Back Better Act currently stalled in Congress. But observers say it might not be enough to save the middle class from economic hardship now and in the future.

“My friends that were struggling are still struggling,” said Jacob. “I’m still budgeting down to every dollar trying to get things done. So I just feel like if the changes are happening, they’re not trickling down fast enough for us to see the effects of it.”

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Why The Middle-Class Is Disappearing

[Beatricegove]

Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.

[jthompson]

Crazy to think only a few decades ago, a single working parent in a factory could support a whole family, even buying a nice house and a vehicle.

[gagnepaingilly]

America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..

[sommersalt]

The broad-based Standard & U.S. consumer confidence has sunk to record lows, thanks mainly to inflation. Retail spending, home-building, and manufacturing output all declined and those who drive the U.S. economy, are starting to cut back on discretionary purchases, such as appliances and services. Regardless of our market conditions, however, we should continue to promote savings and smart investments.

[PM-]

My dad and mom didn’t go to college. They both graduated high school in 1960. Dad was a plumber. Mom was a homemaker. They had four kids. Owned a nice house. And all the kids went to college. That life is gone nowadays for young people.

[billhinshillwood]

Rent, cost of college, daycare and pre school, and health care costs are out of control. Most of my friends younger than me have chosen not to have kids, and I don't blame them at all for that decision.

[tonysilke]

The financial system has been artificially pumped for over a decade to ensure big pockets were lined; and now those same hands will make a fortune in the largest transfer of wealth in human history by shorting it on the way down. Inflation does have a roll, but that's to keep everyone panicked, and focused on their bills and expenses, rather than focus on the capital crimes of politicians and corporations, I'm still at a crossroads deciding if to liquidate my $338k stock portfolio, what’s the best way to take advantage of this bear market??

[yahyoubetchaa]

It's insane how a family who makes $100, 000 a year is stuck renting and can't buy a property of their own (in the area they live in at least). This is not normal and needs to change

[MeadowlakeSt]

„If they’re in their thirties, they may not feel comfortable having kids because they’ll realize that having a child would be too expensive.“ Exactly. Same in Germany.

[KA-mdje]

My grandfather was a mail carrier for the USPS and grandmother was a homemaker. With that one salary they bought a house, raised four children, and sent all four children to catholic school. They didn't have money for any extras, but they had enough for food, healthcare, clothing, etc. and didn't receive food stamps or any government assistance. That would be impossible to do today.

[divlweb]

This administration is putting many families in difficult situations. A lot of people are financially struggling to live, put a roof over their head and put food on the table. Things are getting worse these days, if you don't find means of multiplying your money you might wake up a day to realise you didn't plan well for yourself and family.

[thekidd]

It’s happening here in Canada too. It’s frustrating. You get a “professional” job and still struggle. Not sure what’s going to happen if this keeps going on.

[MoistSocks]

And people wonder why younger people aren't having kids.

[Dainja]

My daughter is 25 and still lives at home with my wife and I. She works full time and saves most of it. I told her to keep saving until she has enough to buy her own house to live in or rent out, or save enough until she has enough money to start her own business. She only has to pay the electric bill, so she's stacking up lovely. That's one way to make it. Family should help family if they're trying to make it.

[georgeesther-zqjs]

Working under some one is like imprisoning yourself they get all the money and you get little pay, may God help us.

[DennisJack-kmho]

The U.S. economy can actually get better if only the govt can start making better decisions for the sake of it's citizens, cos' they've really made life more difficult for its residents. Hyperinflation has left the less haves bearing the brunt of the burden. Its already eating into my entire $620k retirement portfolio. Like where else can we invest our money with less risks?

[mikhailcunin]

"The wealthy, have all the money and pay little to no taxes, the working class pay all taxes, and poor families are there to remind the working class what would happen if they quit that job they hate so much."
-George Carlin

[brianal]

Chantal’s story is so relatable. Taxes and insurance eats a HUGE portion of your paycheck, and you still find yourself out of pocket for healthcare costs. It’s insane

[harveyhilgendorf]

Five to six decades ago, my dad, with an 8th grade education, bought a house, two cars and three harleys, while in his 20's. My mother was a stay at home mom.
Different world today. Need a massive amount of income to afford a similar quality of life as what it was in the 60's and 70's.

[elena-dhim]

I’m an Italian and I lived in several cities here in Italy and I was astonished by the number of Americans I have met in my country! Italy is well known for being ABSOLUTELY NOT IN A good economic/financial/ jobs situation. So it amazed me to see so many Americans moving here (forever!) cause I always thought “why would you leave an amazing country like the USA?”. I always asked this question and the answer was pretty much the same: they said the situation is out of control and that in Italy life might not be easier but at least it is way enjoyable and that the American dream is utopia. I have always dreamt about moving to the USA for better opportunities but when I said that basically all the American friends here in Italy told me to look somewhere else… 😔😔 it’s sad