The collapse of the middle class is a scary and serious problem for American families, as soaring inflation continues to outpace stagnant wages. The economy under President Biden has yet to show any major improvements, and the result is an ever-increasing squeeze on middle-class households struggling to make ends meet. With prices rising faster than income, it’s become increasingly difficult for everyday Americans to maintain the standard of living they’ve always known – a disaster that should not be ignored or accepted any longer.
It’s incredibly worrying that Biden has failed to address this issue as we inch closer and closer to the total collapse of the economy, a collapse that is more often than not tied directly to inflation. Biden has proven his lack of leadership by standing idly by as our whole nation experiences such terrifying consequences with no clear resolutioning in sight.
CNBC reports, Middle-class Americans suffered the most from inflation.
The Congressional Budget Office reported in September that prices for middle class families increased faster than incomes. The report found that income growth outpaced price growth for households in the lowest and highest income brackets.
While middle-class wages are growing at a high rate, they cannot keep up with the increase in living costs, which in December hit a six-year high of 6.5% – making it harder for middle-class families to maintain the same lifestyle as previous generations.
Almost three quarters of middle-income families say their earnings fall behind the cost of living, up from 68% a year ago, according to a Primerica survey of households earning $30,000 to $100,000. Similarly, 74% of respondents said they couldn’t save for their future, up from 66% last year.
The middle class has been shrinking over the last 50 years.
Cnbc reports. Pew Research Center indicates that the middle class has been shrinking for the last five decades as more Americans have moved into higher or lower income brackets.
According to the United States Census Bureau, the median American household income in 2021 was $70.784. Pew defines middle class as those earning between two-thirds and twice that income. The middle class includes American households earning up to $141,568 and as low as $47,189.
However, other factors, such as family size and location, can affect what middle class looks like for you. In the 20 most populous U.S. metro areas, the middle class income threshold is as follows:
If you are living in New york, Los Angeles, Chicago then from 52k to 170 per year puts you in the middle class income bracket. However if you are living near Washington DC, for some reason, that same range is 74k to 225k per year. Yet when you get to Tampa Florida that range is from 42k to 126k per year.
Americans in the middle class have faced a collapse of living standards and purchasing power like never before. With inflation skyrocketing due to Biden’s failed economic policies, middle-class households are seeing prices increasing faster than their income. This is an alarming disaster, bringing fears of an uncertain future for the nation’s middle class. It’s scary to think that even though wages continue to grow faster than historical averages, it’s not nearly enough to keep up with the increasing costs of living. The collapse of the middle class could spell disaster for every working person and their families who rely on a secure life that only the middle class can bring.
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