Why The American Dream Became Unaffordable For The Middle Class

As of June 2024, 65% of middle-class Americans say they are struggling financially and don’t expect their situation to improve for the rest of their lives. Meanwhile, 72% of middle-income families say they are actively cutting back on non-essential expenses, with nearly half cutting back or pausing their savings entirely. So how has the middle-class life that’s idolized by so many American families become so unaffordable? And what role does policy play in solving it?

Chapters:
1:56 Housing
4:25 Child care
6:46 Health care
9:04 Politics

Produced by: Juhohn Lee
Animation: Jason Reginato
Supervising Producer: Lindsey Jacobson, Jeniece Pettitt
Additional Footage: Getty Images, ABC News, CBS News

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Why The American Dream Became Unaffordable For The Middle Class

[christopherg]

I have never made so much money in my life and feel so broke.

[justadevil]

If "middle class" is struggling, maybe it's not the middle class anymore and people are just getting poor and the actual middle class is shrinking?

[hyrenaj]

The American dream is no longer a house, a car, a spouse, and a couple kids, but to not go hungry without going into debt at the end of the month.

[bboyizzy]

Middle class is being taxed to death. We are also being squeezed by inflation. Too poor to get tax incentives and too rich for government help.

[DorathyJoy]

To attain upper-class wealth, a wise individual recognizes that building financial success requires smart investments, strategic tax planning, and informed decision-making. Although the stock market offers growth potential, effectively seizing these opportunities demands both skill and expertise.

[andybadertscher]

An easy solution to ease the housing crisis is to not allow business, corporations, both foreign and domestic from purchasing single family homes. Homes are not and shouldn't be an investment

[YaxelBurone]

I hope we all know that it doesn't matter who is in the 'top job' because this is a systemic problem -- greed. We have allowed many of our economic sectors, to take advantage of the American people. It's disgusting and frightening for the future of our country. My wife and I will be retiring in the next two years n another country.
We are absolutely worried that SSI will no longer be funded. we'll have to rely on his pension, a 403 (b) and a very prolific Investment account with my Stephanie Janis Stiefel my FA. Our national debt is bloating and expanding every month. Our government needs to get spending under control and cut the federal budget.

[Patriciacraig]

The average person has never been so poor. Millions of families are struggling financially as living expenses hit the highest levels in more than four decades. Over 60% of our country lives paycheck to paycheck and about 40% earns poverty wages. Even after working all their lives, more than a quarter of older people have no savings and many believe they will never be able to retire in dignity, while around 55% of elderly people try to survive on an income of less than 25, 000 a year.

[sarawilliam]

The 1% of rich Americans think of how to invest their money to increase their wealth during the recession. While the 99% of struggling hard-luck Americans think of how to survive without food and daily necessities in the recession and the coming hyperinflation. I am just about to make my first index fund purchase via vanguard. I intend to invest long term. just getting slightly stuck on how I balance my percentage portfolio between equity vs bonds. Low risk is good for me. Any tips

[hueyfreeman]

That 53k was 2000-2017~ ( middle class )
Now it's more like 85k-100k~ ( middle class )

[kennethbethea]

This is what happens when the entire US is literally for sale at every level possible. Nothing is safe from greed.

[ChristianJacquet]

I blame the government for what we are going through! It's common sense: prioritize our own country's needs first. Stop sending billions overseas and address the issues we are facing!

[srt]

gasoline, and utilities are killing my expenses. electric bill has doubled and we use less electricity than we did last year. each month.

[pineappleskin]

The cost of childcare has increased by 273% since 1990, yet there's a shortage of childcare workers due to low pay? Gee, who's earning all the money from the increased cost, then?

[capachinoxm]

The first step is to admit that the U.S. is an Oligarchy and that neither party has our back. And every presidential candidate has zero intention to help anybody but their corporate donors and themselves.

[JustinStempel-dp]

53k-161k is a huge range. Too big to be honest.

[AInfusedNetwork]

CNBC’s ultimate “here’s why you’re poor” lecture while simultaneously failing to hold those responsible accountable. If you guys really cared about these topics you’d ask the hard questions to those directly responsible without bias.

[bett]

US ''Golden Era'' was from 1945-1975. Many workers were in unions, had good-paying manufacturing jobs and could afford a home. During 1980 Reagan years, his policies hurt unions and allowed good paying jobs to move to Asia and South America where labor is cheap. Counting for inflation, American workers should be making 100, 000 per year.

[justincadle]

53k? That’s not middle class. Not even close.

[MaxwellT-ju]

I Hit 250k today. Appreciate you for all the knowledge and nuggets you had thrown my way over the last months. Started with 24k in July 2024