<2> The Middle Class in America: A Fading Dream?
<3> Defining the Middle Class
The middle class in America has long been associated with a certain standard of living, characterized by stable employment, affordable housing, and access to quality education and healthcare. However, over the past few decades, the middle class has been shrinking, and its definition has become increasingly nuanced.
<4> Sign #1: You Can’t Afford a Down Payment on a Home
According to a report by Bloomberg, the median home price in the United States has increased by over 50% since 2012, while wages have only risen by about 20%. This means that many Americans are struggling to save for a down payment on a home, let alone afford the monthly mortgage payments.
<5> Sign #2: You Can’t Afford to Retire
A report by Reuters found that nearly 50% of Americans have less than $25,000 saved for retirement, and many are relying on Social Security as their primary source of income in old age. This is a far cry from the days when a pension and a 401(k) were enough to secure a comfortable retirement.
<6> Sign #3: You Can’t Afford to Send Your Kids