Monday, January 30, 2023

"15 Things That Today's Middle Class Can No Longer Afford"

Full screen recommended.
"15 Things That Today's Middle Class 
Can No Longer Afford"
by Epic Economist

"In the harsh economic environment that we're living in today, middle-class families are getting increasingly more cash-strapped and debt-burdened. In fact, if we compare the patterns of consumption from middle-class households of the 2000s and right now, we can rapidly realize that many of the hallmarks that symbolized that someone has made it to the American dream, - such as the ability to take vacations, or having more than one vehicle per household, or dedicating a share of their incomes to leisure and entertainment, - are actually things today's middle class can no longer afford.

Until 1990, the standard middle-class lifestyle included homeownership, sending children to college, affording health care costs, owning two or more vehicles, traveling at least once a year, and middle-class Americans were also known worldwide for their purchasing power and for boosting the U.S. economy through their spending. Right now, the reality of middle-income earners is definitely not the same. In fact, a whopping 81% of households in the income bracket are facing a consumer recession this year, Primerica revealed. Notably, nearly three-fourths, or 72%, of middle-class workers believe that their income isn’t keeping up with the rising cost of living.

Given that the cost of everyday necessities is squeezing the monthly budgets of middle-class households all over the nation, almost half, or 49% of middle-income earners are relying on credit cards to make ends meet. In the past quarter alone, about 29% of workers in that income bracket have said that their credit card debt has increased. With interest rates at the highest levels in decades, those balances can bulk up pretty fast. However, a new LendingTree survey found that 43% of middle-income Americans expect to add to their debt in the next six months. The share was highest for parents with children under 18, with 58% expecting to take on debt in the first half of 2023. The most common reason for adding debt: Paying for necessities, followed by emergencies and health care costs, LendingTree said.

Many of the things that make life livable are becoming out of reach of our population, and we're having to let go of the things we enjoy as the cost of basic necessities eats a larger share of our pay every month. Being a part of the middle class is more than having access to education and homeownership. In fact, those are essential aspects that should be guaranteed for all income groups. The American middle class is the epitome of a lifestyle that the whole world has embraced. And yet, Americans are being excluded from the culture they created themselves. Our standard of living is declining at a breathtaking speed, and that's a process that gets even worse with each passing year. With a recession at our door, conditions are expected to get even tougher in the foreseeable future.

It's sad but it's true: the American middle class is getting poorer over the years, and in today's video, we compiled several services, products, assets, goods, or lifestyle choices the current generation of middle-income earners can't really spend their money on."

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