The Forgotten Majority: Exploring the Challenges Faced by America's Middle Class

For years, the American middle class has been seen as the backbone of the American Dream. They have embodied the values of hard work, financial stability, and leaving their children in a position to have a better life than their parents. However, behind this idealized notion, the reality facing the middle class in 2024 is the harsh truth: the middle class is under siege.

This is not a siege of a city or a country, but a siege of an entire socioeconomic class. This siege is economic in nature, eroding the middle class and removing a cornerstone of the United States of America. Once they are gone, they may never return, altering the fabric of the United States forever. This post intends to look at the challenges facing the middle class and how the policies of our party, The Middle Class Party, aim to alleviate these challenges.

Let’s begin.

Why The Middle Class Matters

The Middle class are the households and individuals who fall between the upper class and working class within the socioeconomic hierarchy. Those in the middle class often have a higher proportion of college degrees than those in the working class, may own property, and usually have more income available for spending.

The middle class serves as a cohesive socioeconomic force within America. Traditionally, they are not impoverished nor do they have excessive wealth. Their emphasis is on upward mobility, serving as a positive force for economic development and change. But this is changing as the middle class shrinks.

And not for the better.

A Shrinking Middle Class

The middle class was once the economic goal for a clear majority of American adults. However, data from the Pew Research Center has shown that the middle class has been steadily shrinking. The number of adults who live in middle-class households fell from 61% in 1971 to 50% in 2021.

Share of adults in U.S. middle class has decreased considerably since 1971

% of adults in each income tier

Note: Adults are assigned to income tiers based on their size-adjusted household incomes in the calendar year prior to the survey year. Shares may not add to 100% due to rounding-Source: Pew Research Center analysis of the Current Population Survey, Annual Social and Economic Supplement (IPUMS).

PEW REASEARCH CENTER

This data doesn’t account for surging inflation. Families that were middle class just a few years ago in 2020 may no longer be in that category. Being unable to afford the basic necessities such as education, healthcare, and housing, the middle class is at risk of sliding into poverty.

This situation is not only bad for families and individuals, causing them to have mental health issues, but it also harms the overall economy as a whole. Without a strong middle class, society becomes unstable and unequal. We are already witnessing this across verticals.

Childcare, Housing, and Rent Are Too Expensive

Sticker shock is real and is happening across the board. What were once considered affordable essentials are gradually slipping out of reach for the middle class.

The National Database of Childcare Prices, which provides child care costs in 2,360 U.S. counties, shows that child care expenses are simply unsustainable for families throughout the U.S.

As of 2024, the average cost of a house has soared to approximately $400K-$420K. To qualify for such a purchase, individuals would require salaries upwards of $120K annually, a stark contrast to the $60-$70K range that sufficed for home qualification just a few years ago

According to a report by the Joint Center for Housing Studies of Harvard University half of renters in the U.S. spent more than 30% of their income in 2022 on rent and utilities, making it difficult for them to meet other essential expenses.

The high costs have led to nearly 50% of young adults between the ages of 18 and 29 to live at home. This is the largest percentage since 1940, the end of The Great Depression.

Shopping Is Changing…for the Worse

Without a strong middle class to support them, retail giants are being forced to close stores, lay off workers, and change their strategies that cater to the polar opposites of economic spending. In other words, in today’s America, you are either a luxury shopper or a discount shopper. There is no middle. Here are a few examples of what an eroding middle class means for retail:

In 2022, 95% of luxury brands increased profits while dollar stores are thriving, with Dollar General planning to open an additional 800 stores.

Macy’s is closing 150 stores and instead focusing more on upscale brands for high-end customers..

Wal-Mart, once known for catering to discount shoppers, reported more middle- and high-income shoppers.

The grocery business is also being affected by the hollowing out of the middle class, with budget-focused Aldi and high-end Whole Foods both growing. Grocery prices have jumped by 25 percent over the past four years, outpacing overall inflation of 19 percent during the same period.

The middle class, once a vial source of revenue and customers, is being squeezed out. Without a vibrant middle class, companies may be forced to close. This means less income and less jobs, contributing to further social problems such as homelessness and crime.

Healthcare Is A Major Burden

The soaring cost of healthcare is another essential that is becoming increasingly out of reach . Even for those fortunate enough to have insurance, deductibles, copayments, and out-of-pocket expenses can quickly add up, placing an immense strain on household budgets. For many middle-class Americans, accessing quality healthcare has become a luxury rather than an essential right. An article from KFF, the independent source for health policy research, polling, and news, breaks it down further:

Health care debt is a burden for a large share of Americans. Four in ten adults (41%) report having debt due to medical or dental bills

The cost of health care can lead some to put off needed care. Six in ten uninsured adults (61%) say they went without needed care because of the high cost.

About half of U.S. adults say it is difficult to afford health care costs. One in four say they or a family member in their household had problems paying for health care in the past 12 months.

The cost of prescription drugs prevents many people from filling prescriptions.

Those who are covered by health insurance are not immune to the burden of health care costs with (48%) of insured adults worried about affording their monthly health insurance premium.

Economic Insecurity

All of these challenges are only compounded by economic insecurity for the middle class. Traditional middle class careers have become obsolete to automation, globalization and rapid technological advancements. The result?

Feelings of financial insecurity in America are at a record high according to a study by Northwestern Mutual. One-third (33%) of adults say they do not feel financially secure. The top concerns include:

Inflation

The economy.

Lack of savings.

Personal debt.

Healthcare costs.

Enough is enough. America needs and deserves politicians who serve the people and prioritize their needs over personal gain and corporate agendas.

America needs the Middle Class Party.

The Middle Class Party: A Solution For The People By The People

The mission of the Middle Class Party is to restore balance to America's two-party system. Our party presents a pivotal opportunity for everyday Americans to reclaim the vision of our founding fathers and the American dream for every American.