Even some in the upper middle class struggle.
If their main source of income was to be lost, 27% of Americans, including many in the middle class, believe they could not cover three months of expenses by any means.70% of Americans believe the middle class is either staying the same or shrinking, while 30% worry the middle class may disappear altogether due to inflation.From 2007 to 2017, the middle class shrank by about 3%, with about 2% percent moving to the upper class and about 1% percent falling into the lower class.Experts refer to this trend as the “squeezing of the middle class.” A significant percentage of middle-income earners report feeling pressure to keep up with rising living costs.
#DEFINE UPPER MIDDLE CLASS PLUS#
In this article, find out why it’s important to understand which income tier you actually belong in, plus how rising inflation and changing economic conditions may be affecting your income status. Today, roughly half of Americans earn middle-class incomes, yet in some surveys, as many as 73% say they believe they’re middle-class. When the middle class is reluctant to spend, the housing market and small businesses suffer, fewer advanced degrees are pursued, and more people go uninsured. A 2021 Federal Reserve survey found that almost one-third (32%) of middle-class American adults couldn’t afford a $400 surprise expense.įrom an economic perspective, the middle class is essential for keeping the economy running because they spend a significant share of their annual earnings on basic living costs, plus “luxury” items such as dinners out, vacations, and new cars. adults remain in a position of ‘financial fragility’ despite marginally improved economic security,” says Lalita Clozel for the Wallstreet Journal. The decline of the middle class reflects concerns over rising income inequality in America. For instance, in 1971, about 61% of Americans were considered middle-class, but today this number has fallen to about 50%.
has been slowly dwindling over the past 50 years. Based on the Pew Research Center’s analysis of government data, the middle class in the U.S. for most of the country’s history, is shrinking. The American middle class, once the largest demographic group in the U.S.
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