Middle-class families, which used to be the backbone of the United States
economy are becoming poorer. Despite the constant bombardment of news of a
“healthy economy,” 62% of middle-class families struggle to afford a basic
middle-class lifestyle.
Even though the unemployment rate that has reached a 50-year low of 3.7
percent, most jobs across the U.S. don’t support a middle-class or better
lifestyle, leaving many Americans struggling, according to a new study.
When factoring in both wages and the cost of living in the metro area where
the job is located, 62% struggle to provide a middle-class lifestyle
according to the study by Third Way, a think tank that leans center-left on
the political spectrum.
“There’s an opportunity crisis in the country,” says Jim Kessler, vice
president of policy for Third Way and editor of the report. “It explains some
of the economic uneasiness and, frankly, the political uneasiness” even amid
the most robust U.S. economy and labor market since before the Great
Recession of 2007 to 2009. But is the economy robust? Or are we being fed a line by the
mainstream media? The middle class is not thriving, and increased
regulations and higher taxes make it difficult for people to branch out on
their own and create their own business.
“I’m frustrated with the fact that I’m not going to be able to save
anything because my rent is so high,” says Esther Akutekha, who says she’s
30ish and pays $1440 per month to rent an apartment. Akutekha is a public
relations specialist and her job pays more than $50,000 a year, but she’s
still struggling. “I don’t even know if I can afford” to have children,” she added according to USA Today.
A slight majority of Americans, 52 percent, do live in middle-class
households, according to recent annual reports by Pew Research Center. And
another 20 percent or so live in upper-income households. But that’s because
they’re juggling multiple jobs, for example, or relying on investments, an
inheritance or other household members who may have higher-paying jobs. –USA Today
The findings of this new report highlight how scarce opportunity has
become in the modern economy. Less than half of available jobs will offer a
middle-class or better lifestyle. According to Third Way, to put this another
way, only 38% of jobs pay more than the equivalent of $44,066 per year in the
median cost of living region in the country.
The report also made comparisons based on housing costs in certain cities.
For example:
A machinist in Cedar Rapids makes on average $45,470, well short of the
$57,220 the same job pays in San Francisco. But the lower paid Cedar Rapids
machinist is leading a middle-class life while their San Francisco
counterpart falls well short. Same job; different life. –Third Way
But the dwindling middle class is nothing new. The results from Third
Way‘s model indicate that the opportunity to earn a good living is
scarce throughout the United States and it will no doubt only continue to
worsen.
