The middle class in America is disappearing for many different reasons. And we don’t just mean the big & obvious ones like technology taking over jobs or factories moving overseas. No, other ones are making life tougher for people trying to keep their heads above water. Here are eleven reasons why the middle class is disappearing in America.
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Tax Policies That Don’t Play Fair
The rules of the tax system aren’t the same for everyone. The middle class is stuck paying more than their fair share while the rich have loopholes to slip through that keep their money safe & sound. This means the middle class has less cash to spend on things that matter—like saving for a rainy day or even a well-deserved vacation.
Needing a Degree for Everything
Back in the day, you’d get a solid middle-class job straight out of high school. But now, you need a degree for everything—even for jobs that didn’t require one before. Many people are shelling out big bucks for education and are saddled with debt as a result. Sadly, it’s still no guarantee of a good job.
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Savings? What Savings?
Saving money is a myth for the middle class. With every paycheck, it seems like there’s more month than money after they’ve covered the essentials. They have hardly anything left to tuck away and especially not for savings. As such, it’s practically impossible to plan for the future or even dream about retirement.
Owning a Home Just Got Harder
Owning a home used to be part of the American Dream but that dream is harder to reach. House prices are sky-high & getting a mortgage isn’t as easy as it used to be. Essentially, the goalposts have moved—and now, many people are stuck renting as they watch their chance to build equity & wealth slip through their fingers.
Jobs Aren’t as Secure as They Used to Be
Job security is another thing of the past because companies are cutting corners and outsourcing jobs. In some cases, they’re just replacing people with machines. Many people in the middle class don’t know if their jobs will be there tomorrow and with unions having less strength than they once did, there’s no help available, either.
Healthcare Costs Are Through the Roof
If you get sick in America, then you had better have a thick wallet. Even with insurance, the cost of getting care or just regular check-ups hits the middle class’s budget hard. Many people put off necessary healthcare because of the cost and this only leads to bigger problems down the line. It’s a vicious cycle where your health & finances suffer.
Climbing the Ladder Feels Impossible
The idea that you can work hard and move up in the world is a fairy tale now. It’s harder than ever to jump from lower or middle class to upper class because the barriers to upward mobility are towering. No matter how hard people in the middle-class work, the dream of a better life remains just that—a dream.
Good Luck With Retirement
Since pensions are disappearing & saving enough money for retirement is near impossible, many middle-class people can’t retire. The options are slim—you can pour money into a 401(k) but then you’re at the mercy of the stock market. Or you can try to save up on your own but with the cost of living what it is, good luck with that.
Living on Credit Just to Keep Up
Speaking of the cost of living, a lot of the middle class is using credit cards just to keep up. Unfortunately, the debt comes with a steep price as it traps people in a cycle that’s hard to escape. But it’s not just the big purchases anymore—now, it’s groceries, gas & other day-to-day expenses going on a credit card because the cash just isn’t there.
Underemployment and Part-Time Work
Another big issue is underemployment or middle-class people being stuck in part-time work when they want full-time jobs. Lots of people are overqualified for the jobs they get, which means lower wages & less job security. As such, they find it hard to cover expenses or save money. Even investing in future opportunities is practically impossible.
Lack of Affordable Childcare
For many middle-class families, the cost of childcare is almost like a second mortgage. After all, high childcare costs use a lot of a family’s income and this makes it hard for both parents to work full-time. The middle class is forced to make tough decisions about career & family, which often involves delaying their professional advancement.
Disclaimer: This list is solely the author’s opinion based on research and publicly available information.
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