Middle-class families struggle with rising costs

Kyle Connolly, a mother of three making a middle-class income in Pensacola, Florida, said, “Financially, things have been a struggle. This past month, I was left with $125 in my checking account and that’s it.” Housing costs, child care, and health care are among the significant expenses putting pressure on middle-class families. Furthermore, 73% of these families find it difficult to save for the future. “In their own neighborhoods and in their own lives, they have their own expectations for what they can do, where they can go, where they can eat, where they can live,” said Bradley Hardy, a professor of public policy at Georgetown University. “And to the degree that they’re facing those pressures, on an individual basis, it is causing quite a bit of alarm.” Inflation in the United States has eased substantially from its peak, but middle-class families are still feeling significant financial pressure. A June survey from the National True Cost of Living Coalition revealed that 65% of middle-class Americans are struggling financially and do not expect their situation to improve for the rest of their lives. Additionally, three-quarters of middle-income families are actively cutting back on non-essential expenses, according to Primerica.

Middle-class families under financial stress

The middle class in the U.S. is typically defined as households earning between two-thirds and double the median household income, which ranges from $53,740 to $161,220 annually. While the rate of inflation has decreased, prices in many categories remain high, and consumers have not seen a significant decline in costs. Economic policies and market conditions have further exacerbated these challenges. The disparity between the wealthiest individuals and the average worker has widened, creating a significant imbalance in economic opportunities. Tax policies and wage stagnation have contributed to a system where the rich continue to get richer, while the middle class sees little to no economic advancement. Unless significant changes are made to address these issues, the American Dream may remain unrealized for the middle class. Policymakers must consider reforms in education funding, healthcare, and tax policy to create a more equitable economic landscape. Only then can the American Dream be made accessible once again to all citizens, regardless of their economic standing.