Being middle class might feel like you’re caught between a rock and a hard place. The assumptions around being middle class have shifted significantly. Wages seem to reflect the productivity and skills of American workers. For about four in ten Americans, money negatively impacts their mental health. Those consumers with substantial debt are truly struggling to make ends meet.
The middle class was once the embodiment of the American dream. However, the contemporary American middle class tells a different story. Being middle class often feels like being in a limbo where you’re perceived to be doing better than the lower class, yet still fall short of those who are financially secure. It used to represent a sense of security. You could ensure your kids attended a decent school, owned a car or two, had a home, and could afford your kids’ college education.
These assumptions around being middle class have crumbled. A survey in 2018 revealed that a third of middle-income adults lacked $400 to cover unexpected expenses. People are less inclined to identify themselves as middle class in polls and tend to suggest they’re part of the working class instead. Economic status is often viewed as a static categorization—either you’re poor or not, middle class or not. However, many middle-class families experience one or several years in poverty, similar to most American families facing periods of being poor or nearly poor.
This insecurity has become a defining feature of the middle-class experience for most U.S. families. So, what exactly happened to the American middle class? A study by the Pew Research Center unveiled that the middle class, once the majority, has gradually shrunk since the 1970s. Around 61% of American adults were part of the middle class in 1971, compared to just 51% in 2019. Nevertheless, the debate about this issue persists.
Determining whether the middle class is shrinking poses a significant challenge because the nation hasn’t established a formal definition of middle class. Statements claiming the middle class is gone aren’t accurate, although some prefer the term “squeezed” to describe what’s happening today. Despite no statistical decrease, the middle class is under immense pressure to maintain or even elevate their position. The cost of living a middle-class life has evolved in many American cities, making it challenging to afford rent, property ownership, having children, or adequate healthcare.
As the middle-class lifestyle becomes more costly and uncertain, it’s slipping further away from the reach of younger generations. In 2019, only 60% of millennials were part of middle-income households in their twenties, a decline from almost 70% among baby boomers.
