Why The Middle-Class Is Disappearing
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- Опубликовано: 2 май 2024
- The middle class was once a symbol of the American dream. It meant financial security and an opportunity for a better future. But that portrait of the American middle class is quite different today. A survey in 2018 found that a third of middle-income adults don’t have as much as $400 to cover an unexpected expense. And while the middle-class lifestyle grows more expensive and uncertain, it’s also moving beyond the reach of younger generations.
“It was at least a secure category,” said Alissa Quart, author of ‘Squeezed: Why Our Families Can’t Afford America,’ [but] there are certain kinds of assumptions around being a middle-class person” that have “shattered” over the past 10 to 15 years.
Some middle-income households and experts believe a lack of supporting policies might be to blame for the drastic changes.
“There is no help whatsoever,” according to Chantal Jacob, a middle-income parent from suburban Texas. “There’s no policy in place to assist people. And I feel like as soon as you get a job, as soon as you’re working, they’re just like, ‘That’s all you need, a job. You got it, go forth and have at it.’ ”
Lawrence Mishel, a distinguished fellow at the Economic Policy Institute, shares that sentiment. “It’s not that the economy got worse, it was that there were policy decisions made so that the economic growth did not filter down to the vast majority.”
The Biden administration has been pushing for several bills aimed at supporting middle-income households, including the $1 trillion bipartisan infrastructure legislation passed in November 2021 and the Build Back Better Act currently stalled in Congress. But observers say it might not be enough to save the middle class from economic hardship now and in the future.
“My friends that were struggling are still struggling,” said Jacob. “I’m still budgeting down to every dollar trying to get things done. So I just feel like if the changes are happening, they’re not trickling down fast enough for us to see the effects of it.”
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Why The Middle-Class Is Disappearing
Crazy to think only a few decades ago, a single working parent in a factory could support a whole family, even buying a nice house and a vehicle.
Mississippi has been a shithole since the 1970s
Population is going, spending money we don't having on a bloated, useless military
Billionaires shouldn't exist. They should be forced to give excess wealth to government, relatives or trusted charities
No, vehicles were expensive back then.
@Bob Indeed. The best friends that corporate capitalism could hope for are lefties. These people have damned us all.
This is a result of outsourcing manufacturing to China, which only has benefited the upper class who own shares in these companies!
at least you can buy stuff by printing dollars (aka credit cards), here in mexico we have some manufacturing jobs but they pay a misery and prices raise and raise, and credit card interests are exhorbitant so we can not purchase anything, we only survive. People in wall street are the biggest winners, because they use the money they print to buy assets like real estate and stocks and they get richer and richer.
My dad and mom didn’t go to college. They both graduated high school in 1960. Dad was a plumber. Mom was a homemaker. They had four kids. Owned a nice house. And all the kids went to college. That life is gone nowadays for young people.
Plumbers make boat loads of money nowadays
You just described my family as well. My dad was an independent building 👷♂️ contractor and my mom was a homemaker as well. My brothers did go to college as well. These days are truly challenging. Well stated.
@Joscha Wexler And sir just those few words tell my story as well. I miss so many aspects of it. Well stated.
My grandparents didn’t finish college. Grandma was a bank teller, grandpa was in the army and worked at a pool store. They have a nice house (for LA standards) and supported 2 kids through private colleges and were never struggling. I’m a CS new grad and don’t even see that happening to me if I ever have kids
How can you think that kind of lifestyle is sustainable? You parents were able to do so bcos the country benefited from being the superpower post WW2. Now the country is losing in global competitions and so normal peoples lifestyle back to what it should have been
The financial system has been artificially pumped for over a decade to ensure big pockets were lined; and now those same hands will make a fortune in the largest transfer of wealth in human history by shorting it on the way down. Inflation does have a roll, but that's to keep everyone panicked, and focused on their bills and expenses, rather than focus on the capital crimes of politicians and corporations,I'm still at a crossroads deciding if to liquidate my $338k stock portfolio, what’s the best way to take advantage of this bear market??
Consider hiring financial advisors, estate planners or tax experts. They can provide specialized knowledge and help you navigate complex financial decisions.
Certainly, I've been consulting with a Certified Financial Planner (CFP) since the outbreak. Beginning with an initial fund of $80k, my advisor makes decisions on when to enter and exit positions in my portfolio, which has now expanded to around $350k.
who is your advisor please, if you don't mind me asking?
Her name is Amber Dawn Brummit can't divulge much. Most likely, the internet should have her basic info, you can research if you like
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..
Collapse is generous 1st time in our history with a full generation that wasn't taught financial literacy, civics, Google fixes their problems if their parents don't do it for them. Reckoning for participation trophies is incoming.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
@@shirleneunglesbee1423 Hi Mate, please how can i reach this CFA of yours?
@@shirleneunglesbee1423 I searched her up online and checked out her credentials since I was so intrigued. Top-notch! I emailed her to inquire about accepting new clients.
Whatever you do, don’t take a serious look at what Jews who’s family immigrated to America from Eastern Europe around the turn of the 20th century have been doing.
Rent, cost of college, daycare and pre school, and health care costs are out of control. Most of my friends younger than me have chosen not to have kids, and I don't blame them at all for that decision.
Don’t forget being taxed to death. I am a hard-working middle class American just like you, and paid more in taxes last year than a lot of people bring home in annual salary. Ridiculous.
White supremacy is coming to an end in America.
This is spot on. I am 37 and have decided not to have kids due to the exact reasons you listed. Rent, college, daycare, and health care. Exactly those four, the things that are necessary to live and raise a family are being criminally overpriced because there are no alternatives.
@@HonorableBeniah-A the hell, wrong comment section buddy.
Modern life style of human bieng is deteriorating the ability of humans to produce life and certainly soon it will completely end life generating capabilities of human bieng.
„If they’re in their thirties, they may not feel comfortable having kids because they’ll realize that having a child would be too expensive.“ Exactly. Same in Germany.
Uhh yea, I'm 36 yo woman and do not want to have kids. My mom tells me I will regret it, but I make $40K/year .., can't imagine having a child on $40K/year in the US, it's simply not possible.
**Edit -- I should say I want kids, but I just "can't" have them due to financial reasons. If I made more, I would adopt or foster 😊**
@@LTilli313 I'm in the same position, more or less (I'm 35). I think a lot of the older generations simply don't get many of our generation do not want children because it either isn't an option at all or because having a child would mean that the child would grow up poor. I would want the best life for my children, and I cannot provide it.
Except in Germany you have TONS of social services, including medical treatment. Here, you have nothing. I got pregnant without "maternity" insurance- I had standard health insurance,which costs me thousands a year, but no pregnancy coverage- and I paid $20k for my baby, out of pocket.
in den 90er Jahren mussten meine Eltern noch Kredite aufnehmen, um sich einen großen Wohnzimmerschrank & TV-Kommode leisten zu können. Heutzutage können sich Leute in ihren 20ern solche Dinge ohne jeweiligen Zusatzaufwand oder -belastung ihres Geldbörsels leisten. Ich bin zwar auch eine Person in den 20ern, aber ich habe nicht viel zum Beschweren, da ich mir heute (subjektiv gesehen) mehr leisten kann als meine Eltern in meinem Alter. Dass ich einen Kredit auf 30 Jahre aufnehmen muss, um eine Immobilie zu kaufen, liegt nur daran, dass ich Single bin (ein potenzieller Partner/eine Ehe könnte das Einkommen mehr als verdoppeln) - und vielleicht auch, dass ich mir mindestens 2x/Jahr einen Urlaub leisten möchte.
@@aeskewprop Yes but in Germany, the taxes (especially on companies) are also high. The USA is a land of free when it comes to corporations compared to Western Europe where they take away often times even 50% of your profits by enforcing high taxes. If the US were to introduce MUCH higher corp.taxes, yes maybe you'll have companies fleeing the country, but you'll also have more to provide. You can't pool resources out of an empty container
The broad-based Standard & U.S. consumer confidence has sunk to record lows, thanks mainly to inflation. Retail spending, home-building, and manufacturing output all declined and those who drive the U.S. economy, are starting to cut back on discretionary purchases, such as appliances and services. Regardless of our market conditions, however, we should continue to promote savings and smart investments.
There is a very critical situation for people in the United States and other countries. The world economy is going in a very bad situation. Inflation and unemployment are on the rise۔
There are several reasons why I invested under the guidance of an investment advisor, i.e. someone who establishes an asset allocation that matches my risk tolerance and capacity, my investment horizon, my current and future objectives. "LISA ELLEN SHAW" provided all of this and I don't want to go ROI on a public space.
@@MIchaelGuzman737 There is this podcast i was listening to and it said something venturing within your tolerance and risk capacity, see you mention it again got to me. How can one reach this advisor of yours?
@@greekbarrios Just look her name up on your browser, it shouldn't be a hassle finding her webpage since she is quite known.
Saving is a terrible idea aside from keeping an emergency fund or a planned purchase that fits into your overall financial picture. Any money beyond that needs to be invested in assets beating inflation or you're moving backwards despite the self sacrifice
Working under some one is like imprisoning yourself they get all the money and you get little pay, may God help us.
Yeah that's right, how many millionaire you see working for salary of $5,000, my advise to to get second source of income.
@@parkerrosemary-it4krYou're absolutely right, to be a successful in life required not only hard work but awareness and sometime opportunity at the moment, investment remains the best way to start.
I agree with you. Investment is the key to sustaining your financial longevity. And not just any investment but an investment with guaranteed return.
Exactly and many of us don't know where to invest our money so we invest it on wrong place and to the wrong people
Obviously talking about been successful, I know I am blessed if not I wouldn't have met someone who is as spectacular as Debra Barton@@kevinfaith-oy5gh
And people wonder why younger people aren't having kids.
Teenage pregnancy is at all times high world wide. I'm not sure about the us
@@rutherford5619 it's too common. I was in high school 10+ years ago and it was scary seeing how many girls were getting pregnant.
People are having kids to get more food stamps n everything else that comes with a new kid.
Exactly, you can barely feed yourself, why bring an innocent child into this world just to have him suffer, you have to be financially stable to have a family these days.
You can also blame feminism for that.
My grandfather was a mail carrier for the USPS and grandmother was a homemaker. With that one salary they bought a house, raised four children, and sent all four children to catholic school. They didn't have money for any extras, but they had enough for food, healthcare, clothing, etc. and didn't receive food stamps or any government assistance. That would be impossible to do today.
with one salary, one can be expect no money for children, wife, and bordering being homeless.
The rest of the purchasing power is going to the central bank slowly overtime. Politicians are not allowed to lift that paper currency of their own nation and start talking about it. It's supposed to be an independent institution so they "run the economy the best way" with trillions in debt apparently.
"A great watch - What are you? Collective Realism ruclips.net/video/S5f5zKsN1DE/видео.html
Usps pays minimum wage
Two things to blame, democRATs and the federal reserve monetary system. Eliminate both and the country can get back on track.
It's insane how a family who makes $100,000 a year is stuck renting and can't buy a property of their own (in the area they live in at least). This is not normal and needs to change
Airbnb has been effecting that issue as well
NOT ENOUGH HOUSING BUING BUILT, ALSO ZONING LAWS MUST GO, THE NIMBY IDEA MUST GO
It will. Big crash coming
@@LassieFarm WITH HIGHER INTEREST RATES COMING ON, HOUSING WILL BE GOING DOWN, TO MAYBE AFFORDABLE LEVELS,,
HOW DO YOU EXPECT TO CHANGE THIS, THE ONLY WAY IS TO SPREAD OUT ALL THE FACTORIES TO OTHER LESS POPULATED STATES, AND MOVE PEOPLE THERE TO AFFORDABLE HOUSING,
It’s happening here in Canada too. It’s frustrating. You get a “professional” job and still struggle. Not sure what’s going to happen if this keeps going on.
Canada is worse in some ways. In BC and Ontario it’s not possible to buy a home. My sister moved to PEI to be able to afford a house but the wages there are super low and now tons of people are moving there from other provinces so things are going up and less developed provinces can’t support all the people coming in
In north america, you are suposed to leave the popular big cities. In some cases the popular states-provinces. Once youre ready for the owning your own house life
For example, if you lived in Toronto city. leaving the city to live in a small town 30 km north from Windsor can be a winning action. Cause houses/appartement are cheaper
If you live in Los Angeles-new york. Maybe moving to a small town in Texas. Might be winning action
You can also move to a less popular big city. Going from Vancouver to Calgary or Winnipeg Saskatoon will make you save money
Going from San Francisco to Portland will make you save money etc
@@mathewvanostin7118 The jobs in that small Texan town won't pay the same as the jobs in L.A. though. It's easy to think, "I'd have plenty of money living in a rural town in Texas making $300k." Well sure, but no rural town in Texas is going to pay $300k. The average "high" income in cities like Jackson, MS or Birmingham, AL is around $250k, and those places are anything but rural.
I live in a small rural town in Alabama, and a lawyer with his own law firm might earn around $150k a year. Most folks here are lucky to earn $30k.
@@mathewvanostin7118 wtf is even 30km north from windsor? still 400k condo for 1br? and wheres the job to support that??
Civil War everywhere ( I am frénch) .
Thé great reset for politicians😁😁
My daughter is 25 and still lives at home with my wife and I. She works full time and saves most of it. I told her to keep saving until she has enough to buy her own house to live in or rent out, or save enough until she has enough money to start her own business. She only has to pay the electric bill, so she's stacking up lovely. That's one way to make it. Family should help family if they're trying to make it.
8
You are great parents, a true blessing providing such a great support system. I hope she continues and reaches her goals.
She's going to be saving for a longgg time
@@Striker50_ , patience and persistence is a virtue my friend. 😃
Did she go to college or university? If yes, how did she pay for it?
"The wealthy, have all the money and pay little to no taxes, the working class pay all taxes, and poor families are there to remind the working class what would happen if they quit that job they hate so much."
-George Carlin
Don't blame the wealthy for paying little to no taxes. They pay what they are legally required too.. Just like you... Blame congress that keeps the tax laws the way they are...
Because that's how capitalism works. Exploiting the general population to make the rich richer. In imperialist societies, that exploitation is exported and it's foreign population that get oppressed, enslaved and murdered. Once the foreign populations liberate themselves and become independent (e.g. China), capitalists need someone else to exploit... if no other foreign victims can be found, they will start exploiting their own people.
Capitalism always fails. Capitalism is always unsustainable. Capitalism is inherently harmful to human society.
Try reading a real economics book instead of educating yourself with comedians. Good God.
"The wealthy, have all the money and pay little to no taxes"
George was wrong on that one.
@@jasonkauppinen3475 No he wasn't lol. Look at the wealth distribution in the US. The elites own a vast percentage of the total wealth, and pay virtually nothing in taxes. Hell if you look at corporations like Amazon, they do pay nothing in taxes.
Five to six decades ago, my dad, with an 8th grade education, bought a house, two cars and three harleys, while in his 20's. My mother was a stay at home mom.
Different world today. Need a massive amount of income to afford a similar quality of life as what it was in the 60's and 70's.
Quality of life now is significantly better than it was 6 decades ago
Bunch of illegals and immigrants making low income skewing statistics
@@jsebby2284 how do you measure quality of life. Owning homes is a massive part of that and that is decreasing.
@Abdirahman Warsame and home ownership rate is higher now than it was 6 decades ago
I feel like it's pretty obvious what quality of life is. Rich people didn't even have a computer 6 decades ago - now poor people have one in their pockets. 6 decades ago black people didn't even have equal rights. Healthcare is better, education is better, were richer, etc
@@jsebby2284 agreed but it is still worrying how difficult it is to own a house not to mention the ridiculous property taxes you have to pay.
I’m an Italian and I lived in several cities here in Italy and I was astonished by the number of Americans I have met in my country! Italy is well known for being ABSOLUTELY NOT IN A good economic/financial/ jobs situation. So it amazed me to see so many Americans moving here (forever!) cause I always thought “why would you leave an amazing country like the USA?”. I always asked this question and the answer was pretty much the same: they said the situation is out of control and that in Italy life might not be easier but at least it is way enjoyable and that the American dream is utopia. I have always dreamt about moving to the USA for better opportunities but when I said that basically all the American friends here in Italy told me to look somewhere else… 😔😔 it’s sad
Haha....
When the "American Dream" becomes "Living in another country because America is getting bad."
Its funny and sad.
I would still say it is good here in the US. People come here and are still making it. They find a way. We have very low unemployment rate. If you have a talent you will do fine. And inflation is high everywhere at the moment. I wish you the best.
@@glen4326 low unemployment rate? Not everyone have talent you know . Only us and eu where inflation is high
@@longhai6458 This goes beyond recent inflation hikes. Everybody in the middle classes are being ripped off. Across the world. Only Corporations are making serious money. This is structural and has been happening since the 1980s. Unions dismantled and workers rights eroded. Hell at least we have healthcare in Europe still. In america it can't be right you could be bankrupt if you get ill.
I will say it depends on what you do, and don’t live above your means.
Chantal’s story is so relatable. Taxes and insurance eats a HUGE portion of your paycheck, and you still find yourself out of pocket for healthcare costs. It’s insane
Its way more taxes than 500 if you make six figures… more like 4k a month in taxes
@@randiaz95 I make six figures and my total payroll taxes are not that high. Not even close. I guess it depends on what you mean by six figures. 100,000... no...500,000... maybe. You don't need to exaggerate to make a valid point.
Move very very close to Mexico border , stop paying medical insurance and go across the border for any medical related issues...
That graph though.. the only classes growing are the rich, and the poor.
It also depends on where you live too. I do think he exaggerated a little but some states have a giant state income tax percentage.
I'm 67. I remember when it was possible, if you lived at home with parents who didn't charge you rent, and you worked a part time job (full time in summer), you could easily pay for college at a state university. I did. This is unimaginable today.
My summer job barely covers 1/3rd of my college anymore. I’m not even enjoying it anymore.
My summer job barely covers 1/3rd of my college anymore. I’m not even enjoying it anymore.
@@jameshersom2536 go to a school that pays for half ur tuition. Home depot, lowes, target (depending on ur school)
@@ngndnd that's if they give you the hours to be an employee that is eligible for benefits
My Uncle was a Vascular surgeon in NJ He said he bartended at night to help pay for med school.
I'm 27. I live in Maine, a place where ambition goes to die. I come from a very ordinary, blue-collar family of sticks in the mud. I've never been to college, never had my own place, and haven't had a relationship since high school. Instead, I've been quietly saving and saving to finance my life of being a digital nomad and after several years of hard work I'm finally seeing that dream close to being realized (assuming nothing crazy happens). My advice is follow your heart, avoid the rat race, and don't be afraid to leave America/Canada/Europe/Australia in search of a better, cheaper life elsewhere. Because things are only going to get worse.
I feel you man. Big time
Everyone needs to stop saying. Everything is going to get worse. You all act like its the end of the world. But there's better places outside america
You're lucky you have your health to do that, good luck.
I am 50. I worked full time and paid my way through college by going part time. Credits were $100. The first house I bought was from an old lady for 28K in the mid 90's. It all changed in 2008. Home prices began to rise then the housing market collapse. Home prices never went back down. Over time a decent automobile went from 20K to 50K. Food prices are now insane and wages have barely risen.
Exactly, they said the recession was over, but it was never over for average people. What they're calling "middle class" in this video sure sound like they're poor!
Another thing that bothers me when people talk about the middle class is, no one seems to care about the singular middle class person. It's just about families. It's almost as though the people who've decided not to have a family don't matter, as though we don't struggle too. When things are put in place... tax breaks and such... it only seems to benefit families.
Especially when it comes to affordable housing as a single person.
Correct and voted up.
@@dianewebb1855 Totally agree with you, thank you.
Agree!
The American dream is house with two or three kids and a couple cars out front. Clearly by this definition single people don't count.
A single person.
"The reason it's called 'The American Dream' is because you have to be asleep to believe it."
- George Carlin
Ironically he'd wasn't on your side dumb Republicans and was in support of a living wage and making sure companies won't raise prices. Burn
Deep…
Cliff Notes: Middle class is shrinking because the gov’t has been literally sucking the life out of it for the past several decades.
No. That’s what they want you to believe.
It’s the people that control the government, who is sucking it dry. Who is that? The oligarchs. The super super ridiculously wealthy. That’s who.
Transfer of wealth via lobbyists and the government.
It’s a big club, and we aren’t invited.
There is no "the government" that exists apart from wealthy and corporate donors that throw money at it so that it does what they want. So the problem isn't the government. It's the people who have captured it and turned it into an arm of private financial interest.
Brilliant to charge self employed 15% tax, then wonder why all the retail vacancies, too
My greatest concern is how to recover from all these economic and global troubles and stay afloat especially with the political power tussle going on in the US.
As with any big financial decision, it’s important to keep your guard up for economic risks. However, smart planning, time management and seeking advice from a financial adviser can help keep you and your money safe
@@Natalieneptune469 I agree with you. I ventured into stock with less than $100,000, and now I'm about 17,000 short of half a million dollars. Credits to Nicole Ann Sabin . She's verifiable.
@@PhilipMurray251 Thank you! i just looked her up and sent a message hoping she gets back to me.
@@PhilipMurray251 I just looked up this person out of curiosity, and surprisingly she seems really proficient. I thought this was just some overrated BS
these bot comments are ridiculous bruh
31 no kids, college degree, no healthcare, never married, never owned a home, renter for life, never made more than $35,000 in a tax year.
Ouch
Same - except im still looking for a reliable job.. and Im a few, but not many, years younger 😔
at least you make 30k not 10k
But did you die?
@@Gchang54 well he has no healthcare so might as well
I don't understand how the average person is supposed to afford rent with the prices increasing so drastically.
It's part of the plan to bankrupt the whole world and have big gov come in and save everyone.
@@krayziejerry yeah I know. Its crazy what happening as the days and world go by
I make 51,000 and I am struggling. Considering a second job. I have no kids and it’s crazy.
"Just get a house then" - prime minister of australia
@@pinkforeverlove1 I remember talking to somebody from the 1960's. He said that minimum wage was about $1.60/hr and 1 gallon of gasoline was $0.25. This means that you can buy around 5-6 times the amount of gasoline with minimum wage during that time. Fast forward to present time for example, gas is about $5.50 - $6.00 per gallon and minimum wage is $14 in California. This means that we can only now buy a little over 2 times the amount of gas, compared to 50 years ago with 6 times the amount, to summarize, our purchasing power in 2022 is 3 times lower than it was in the 60's and minimum wage, if kept up would be at around $33 dollars per hour. Also keep in mind that men use to raise their families on minimum wage half a century ago just fine with no wife working. Nowadays it's borderline homelessness.
I live in Ontario Canada and the housing and cost of living here is disgusting. I’m trying so hard, I own my own business, and I still have trouble making ends meet. I don’t want to be rich I just want so bad to have a family and a home. If I could have a child and a stable place to live I would be over the moon and it breaks my heart that for so many people that’s just impossible
I hope you can make it happen! I want the same thing but good people are hard to find these days
Its same here in the UK
@@andrewmorton395 yeah I have been comparing the home prices in NC where I live and most of the houses are around 60k-100k more than they were 5 years ago. I bought spaghetti ingredients, ice cream, and a few other items and cost me $74. Im great but stuck here in the lower end of the middle class. Gonna have to start calling it upper lower class.
I think another thing contributing that could easily be stopped is corporations buying single family homes and renting them back to people, this pushing up housing prices. This should be made illegal as it just exacerbates wealth inequality and makes life more expensive for everyone for the benefit of the super rich.
Productivity is up but wages are stagnant for everyone but the higher ups. House prices are thru the roof and real estate is being gobbled up by mega corporations. I can't imagine why the middle class is disappearing.
not to mention politicians keep raising taxes in order to fund whatever nonsense they want to pass
But we have the richest people in the world
@Craig Namerow raising prices are hidden tax. let's go brandon
But America is still the best country ever am I right🤡
I Hope they all lose their ass on the rel estate, Can't wait for that big bubble to pop
The middle class isn't shrinking, they just can't afford the things they use to anymore... WELL THEN THEY'RE NOT MIDDLE CLASS ANYMORE ARE THEY!?!? ffs
Yup.
Being middle class is not about affording things, it's about having a stable financial life. Like too rich to be poor and also too poor to be rich.... and look like those times are being wiped out again. Will it ever return...? The answer is I don't truly know... it's not just up to politics... it's also up to the resource values and to us to make things economically stable again...
@@okamijubei dude, that's literally politics
Listen to CNBC tell you why you are disappearing. That will work.
@@matthewgunning9055Gunning I'm speaking of economics. Why make almost everything political? Not everything has to be political. And why want things to be rich or poor? That's what the communists do.
I’m so happy I didn’t sell my home and upgraded years ago. My $700/ month mortgage is less than most of my friends’ rent. I’m going to remodel and stay put out here on the prairie in my little house. Had I still been raising kids, I don’t think we’d make. This solidified me living far beneath my means and a minimalist lifestyle. So thankful I do not have to commute 500 miles a week. The gas cost would crush my budget. My heart goes out to those who aren’t as fortunate.
I gave away so much of my couponing stockpile during COVID. We have to go back to community outreach and help our neighbors. You are seeing ppl being forced to move out with only a moment’s notice. I have never seen so much population growth where I live. The city can’t keep up with the infrastructure needs. We had more four way stop signs than traffic lights. Now, roads are being widen due to traffic from ppl moving out here. Greed is fueling this foolishness.
I am not afraid to die, because I know I will go on to a place where money and greed doesn't exist, and everyone can be equal. Money is all that matters here, and wealth is the one thing you can't take with you when you die. I've never been impressed by materialistic people. Only disgusted. The only thing that will matter on the other side is what you have in your heart, how you treated others, and the deeds you did. Love is the true wealth. And evil people will get what they deserve in the end.
In 1965, my parents bought their 3bdrm, 2bathroom home in southern California for under $20 000, on an aircraft mechanic's salary. When they passed away in 2017, that same house went on the market for over $475 000. Their working grandchildren could never afford to buy that house.
The middle class is dead.
My parents purchased their house in the 1970’s for $50,000. Today their house is worth over $2 million. The housing in San Francisco is out of control.
My parents bought their home in 2016 for 150k. Now it’s “worth” 320k. The dollar is worthless.
That's because not enough new homes have been built!
@@empirestate8791 Land and building costs are extremely expensive.
@@angelgjr1999 Not accurate at all. The dollar is actually higher, right now, against a basket of other currencies than it has been in years.
Pandemic notwithstanding, now would be an economically ideal time to take European or Japanese vacation. It's been years since the last time the dollar went this far in overseas markets.
I had a conversation with my parents and grandparents last christmas. It was shocking talking to them about the generational changes about the middle class and how much easier it was to provide for your family. The American dream is slowly dying year by year.
Keep voting RepubliQanon because multi-billion dollar corporations, millionaires and billionaires need more tax cuts, they promise the next one will really work!
Because of racists .. they feel the others don't deserve a good life
@uno Mostly it is happening to Americans thanks to trickle-down economics...
It's happining all around the world. I'm from Brazil and even though Brazil never had a economy like the US, life was easyer, my grandfather was a bus driver, had 4 kids and was able to aford a big house while he was working and when he retired he bought a small farm a tiny house in the near city and 2 cars, my parents and their siblings was unable to buy a house while working, had a time when things were cheap and affordble, now a popular car is getting around 100k and it's not a popular car for american standards, it's really not worth it. I know Brazil is not comparable, but we are facing similar things, but we are going wildly faster, what took for America 50 years, we did in 15~20 years.
Obviously a lot of things were cheaper back then and people were happy with the simple life.
$800 in car payments a month is killing that family. $280 for phones is right behind that. They make enough and are middle class - they are spending more than they need to and not saving enough.
Former middle class, here. Now live pay check to pay check, no job security, can’t afford benefits like medical insurance, but don’t qualify for any assistance. Don’t have a pension or retirement fund. Don’t own a home and never will. Don’t go on vacation. Can become homeless quite easily. This is not how I grew up.
the middle class isn't disappearing,its been gone for a solid 10 years. Now we are split in two,those who can make rent and utilities on a full time job,and those who can't.
There’s still a slight middle class. This isn’t india.
Yep and it's for sure gone now, most of Americans that do own a home could not afford to buy it at today's prices.
@@msi8311 I think there is a sizeable population of middle class people in India.
A lot of people were pushed into poverty during the pandemic but that is expected to revert when the economy spins into action yet again.
That is not true.
There's no middle class, there were a middle class never, it just a way to divide the working class, who are the people that sell their time to the owner class and it doesn't matter if you earn 10k/year or 200+k/year, the only classes that exist are working class and owner class
There’s a saying, “I would rather be rich, or poor, but never middle-class. The rich can afford health care and anything they want without worry. The poor qualifies for free health care and government assistance. Whereas, the middle-class have to budget for health care and other expenses; yet, not poor enough to qualify for government assistance.”
Why are we middle-class citizens not doing anything about it? I’m surprised we aren’t out with torches and pitchforks to elect politicians not in deep pockets with the ultra rich. Unfortunately, the rich are smart; making us all too divided (R vs D) to work together against the real threat against the shrinking middle-class.
The rhetoric is strong. People are convinced that a candidate's proposal to "raise taxes" means "raise them for the average citizen". What they don't understand is that no one wants to do that, they just want rich people to pay *their fair share*. If you break it down for people so they realize that upper income earners pay a *smaller* percentage of income tax than a middle income earner, to give just one example, who wouldn't be upset?
@@dswan1418 in many cases that just isn't true unless you compare capital gains taxes to income taxes. But hey, keep following Bernie Sanders.
Such an underrated comment. This is the real issue.
The reason why the "middle class" is screwed is that the owner-class of this country wants to eliminate competition, so they make sure to squeeze middle-income earners with more taxes and take all the share for themselves (bailouts, corporate subsidies, etc.) At some point, the ruling class realized it was more profitable to do so (because there was so much wealth the lower classes accumulated after WWII), and here we are.
Well, some of us did support a set of candidates that would have done some big things towards making it possible, but we were called left-wing extremists or socialists.
I would love a part 2 to this with what we need to be doing to change this problem? I’ve heard the same concern about the rich getting richer and the CEO and shareholders (etc.) hoarding the bulk of the profits and not passing them along to workers since I entered the work force 25 years ago. It’s just getting worse and worse. As a single person who has worked in the non-profit sector my entire career and still has a loan from my MA to pay off, there’s not much I can put toward retirement. It’s getting pretty scary to think about.
You're not going to get the part 2 because it means recognizing that there is no political solution to it. The solution involves removing money from politics, which probably means civil war and a good chunk of your ruling class going to prison.
You cannot put any "loyalty" into a company. The only way to get a decent raise is to move to another company and negotiate the amount you want. It's not personal - it's business. You cannot be afraid to leave a company to get what you want, what you need to live "your" happy life. The days of working a career at one company are gone.
I hate the term squeezed, That's not what's happening. People are being systematically impoverished by ever increasing prices, corporate capitalism, and a government that is "By the rich, for the rich" . If we're being squeezed it's in the way that a lemon gets squeezed; juice extracted until all that's left is an empty shell to be thrown away.
People are being systematically impoverished by ever increasing prices
And this is the first time in modern history that inflation has been 7.5%?
Yeah
Very well put. They are CREATING a populace that's Entirely Impoverished on purpose. This didn't just fall into place, it was very maticulously and heartlessly *Planned* .
If you cant beat them, become them. That's what I did. I used to blame others for the woes of capitalism, then I simply started my own business and got rich.
@@user-wz4db1zn3r Same, used to be homeless and on the streets, but then I just bought a house. It's really not that hard people are just lazy and blaming others for their shortcomings.
I had a social worker tell me once, "Poverty tends to move from one generation to another. It's bad enough to be poor and stay poor. But it's worse to become poor. This is the trend which radically changes society (2008?)".
I agree but think young people don’t have realistic expectations. And some have been spoiled and don’t realize that life takes effort so when they become independent young adults claim poverty but they are earning $60k. Stop drinking Starbucks, don’t get a new phone, live with someone to share bills, and drive an older car.
@@charliejennifer3874 Also don't get a degree or you'll be in debt the rest of your life but also get a degree or you can't get a job to pay your bills but you can still get a trade job which will be worth it until you get injured and are back to debt slavery. And that flat you're sharing with others is either going to be far from work causing your travel and maintenance expenses to rise or it's close but stupid expensive so if one room mate leaves and no one else quickly moves in you'll find yourself homeless.
People have already stopped buying luxuries, it's why every month we hear about another industry millenials are killing yet the costs of living continue to rise so what should people do when they're already living tight and their rent went up again? Even if your avocado toast nonsense worked the death of consumerist industries puts more people into unemployment meaning more competition for remaining jobs, higher taxes to pay for them and less incentive for employers to raise wages.
Factor in the aging population and automation replacing jobs and your victim blaming becomes more of a joke.
@@hurrdurrmurrgurr bravo.
glad someone had the energy to refute the same old self righteous nonsense
Well dont live above your means if you dont want to be poor...
If you compare that too the amount of subscriptions we have these days... Or the amount of ''lazy'' services... Like I live in the Netherlands... We dont even have to go to a bank anymore, we can fix everything on our phone... We dont even have to wait for groceries anymore, we can get them within 10minutes.... My grandparents lived (and worked) on the fields... Like please put it in placement of time.
You say it correctly the middle class is nowadays not anymore the definition of what it was back in the days simply because we have a lot of hidden costs... They either drink a lot or smoke or they have a spotify or netflix or disney+ or amazonprime subscription... Like honestly it is a joke. Get rid of all those hidden costs and you can afford it..
Blame the federal reserve system.. Banks lend out money they don't have and then charge interest on it. It is nothing less than legalized fraud and modern serfdom. This goes back to 1913 not 2008
I bought my home in June 2009, during the housing crisis and when the government was offering stimulus for homebuyers. I had no desire to be a homeowner, but my father (rip) made it his mission to make sure both of his children had a mortgage by the end of 2009. He and my mother gifted each of us $5k for the FHA loan down payment. We got $3k from Uncle Sam just for buying a house (i bought a fridge, washer and dryer with the money).
Sometimes I didn’t like my dad for rushing us into home ownership. I wasn’t ready. A house is a lot of responsibility and most times the budget was tight - especially in those first 5 years. Large home repairs were a crisis, but I’ve made it through. I see now why my father saw it was a great time to buy and how important owning a home is as opposed to renting. My home’s value has doubled in those 13 years and my PITI is still $1200. That’s what I am required to pay, but I pay more and should have this mortgage paid off in 4 years. 13 years earlier than scheduled.
…And yet people chastise us for not meeting traditional milestones when the whole game has changed
This happened because we didn't take "The Rent is Too Damn High" guy seriously
rent : is too damn high! .....proceeds to rap the whole speech in 30 seconds
GFC, so they made it so you had to basically prove you had enough money to just straight up buy a house out of pocket if you wanted to borrow, rather than doing a damn thing to prevent another GFC. And now we know that bankers will just invent new things like bitcoin and NFTs to lose money on.
We'll pay the rent when they FIX THE DAMN DOOR!!
I remember that guy! 😂
When everything rises in price, but the income doesn't, it makes living alone challenging. Even more when you plan to have a family which multiplies the cost of living no lower than 10x the amount.
I could not agree with you more.What sort of hope is it left for us all??
@@perapelman7687 stocks I guess
@@perapelman7687 my plan right now is to buy a used van, convert it to electric with solar panels on the roof to have it act as my "Home" for even saving up for a home is so costly. Learning to play in stocks to be a stable income and save enough to last me til my retirement Traveling my country with my van. Plan for having a family is way off my list unless I get lucky enough winning a lottery so I can buy a fast food chain franchise. Other than that, I'll continue living alone doing whatever I want and saving up at the side.
Surprising the CNBC even recognizes the existence of the middle class.
Biden did that.
I’m always amazed at the people who spend $1200/month on automobiles ($800 payment + $400 insurance) then complain they’re not getting enough assistance from the government.
I pay $200 every 6 months car insurance. Every 2 to 4 years I try to get this down 10%. Insurance is a rip off.
I don't have $100 to cover any cost. It's sad. This country is sad.
Middle class in a nutshell.
My parents at 30: bought a 2 family at 230k
Me at 30 : makes more than both my parents. I have two roommates
Literally making just enough to sustain, but never enough to get ahead is the best way to describe it
I feel ya man. But you can achieve. Just may be harder.
I work the same job my mother did. She made $40k with basically and associates degree in the 90s-10s. I make at most $37k with a bachelor's degree. And everything is more expensive.
they used their savings for a combined 50k down payment back then and bought the house. It's well into the million region now since they live in Massachusetts.
I still reside in the state and six-figures doesn't go as far as it used to. You feel safe and stuck at the same time.
@@dedhampster4730 yep my mom went to community college in the late 90s after buying our home and got a job in accounting for a smidge less than 37k, back then 37k would probably equate to middle class, now that's poverty wages. I make almost 100k with a bachelors living near the city and rent and COL is rising faster than my wages.
Yes you said it!! My mom owns a property. The sane property that she put down 3%. Now I am required to put down 20% and 4x the price.
I think the big problem here is that the prices of everything keep rising but income doesn’t, and there’s hardly anything ordinary people can do to stop it so how should it not be scary?
The main problem is price rising. Why allow prices to go haywire like this. It s a man made problem.
They want to nuke everything to build back better
It's all of the governments plan,i worked for the COVID 19 vaccine and they have plans to lower the amounts of consumers since farms are having problems producing products for the masses of people
KidRock put a song out about this just like 3 months ago. I've been so blind just always working my @ss off like a mindless zombie.
@@CVal012* Jewish * made problem
Simply said..the people are to blame.
They are too distracted by their entertainment to rise up and say "no more".
"Why the Middle-Class is disappearing"
Three words: 1. Trickle. 2. Down. 3. Economics.
And who's the ones to blame for prices going up?
Answer: politicians. Left, right, middle. It is all of them. We pick sides when no one is really on our side. We fight over who's right when we are all fools.
You are correct.
So true. Left wing. Right wing. Same plane, headed in the same direction.
@@theroundman we are nothing but pawns, are we not?
YES! The left hand and the right hand are just different sides of ONE body. None of them give two shakes about the people. Every single one of them leave office richer. The longer they are in office the more filthy rich they are. NONE of them will come save you when the problems THEY cause leave you destitute. Wake up people. It is a big club and we aren't in it!
@@djot1745 it's just a small part of the big picture.
I've been living paycheck to paycheck all my adult life. My parents will never understand why. And it can be very frustrating to not have them understand.
My partner's parents are rich, in my eyes, and it's like an entirely new world. They don't blink: paying for a new backyard fence one week, then a new sunroom the next. My family of 8 would have to budget for years for each home project.
Yeah I live paycheck to paycheck too still living with my parents. Depressed most the time just cuz I think I'll never be able to move out on my own think I'm eventually gonna be homeless. Didn't work for like 6 years cuz im bipolar and didn't think I could do anything for awhile. But been working for over 3 years now part time as maintenance pushing carts.
@@redman0728 well, atleast your going places
I am a Physician I had a Uncle who was a Surgeon. He said Dr's dont make as much money today as they used to. I look at the Dr. parking lot in the Hospital parking lot and its filled with Subaru's and SUV's. Back in the old days I remember seeing Jaguars Porsche and Mercedes.
@@redman0728 l have Bipolar Disorder too. I work part-time but l have a roommate and other streams of income. Check Social Security for disability benefits. I receive it. I hope you keep going and hope you get better soon.
Molly, were your parents financially comfortable growing up? Because I always hear about these boomers or Gen xers or whatever who can't empathize with young people because they have achieved the American Dream. I seldom hear about people of that generation like my parents who have always lived paycheck to paycheck and often ask me for money. As a result, though, they empathize because they're reeling from the effects of it as well.
In 1983 I paid 1,080.00 per year for tuition at the state college and 255 a month for an efficiency apartment in town including all utilities. In 1989 I bought a small house on a half- acre of land in a wealthy oceanside town two miles from the beach for 75,000. Today it's appraised for 400,000. College and housing costs have gone so far above inflation it's no wonder the middle-class is having a hard time paying for either. I bought a fixer -upper house in 2017 for 123,000. Now it's valued at 335,000. Crazy!
$1700 a month in rent and $800 a month for two cars? And your income is at $100,000? OK now my head is starting to hurt! You quickly turn that rent into a mortgage and buy 2 used cars that are paid off! Renting and car payments is a total waste of money! This is just financial education and she deff does not have that!
I think one reason the middle class is disappearing is a combination of inflation and stagnant wages. Not the only one but the fact the minimum wage hasn’t kept up with inflation is definitely something to worry about.
Trickle down is a ridiculous failure, Reagan was a moron
@@bentmercer Biden been in power for 40 years. He voted for all wars and became a billionaire.
The problem with your theory is that very few people actually work for minimum wage. Most work for way more.
@@bentmercer Anyone who calls it "trickle down" is a moron and should not be talking about economics.
Its not that the minimum wage has not kept up. You can not live on a minimum wage. The efficiency of computers has put the number of people you need to manage and produce product down. The workforce needed is less but people still have to find higher jobs that pay more money. Those jobs are being done overseas for less money. Any televisions being manufactured in the USA or how about steel??? Productivity up and salaries down.
9:00 this is HUGE. That’s how I feel. Being middle class is great but then you get Zero benefits because the government says “you are ok, you don’t need any help” but it’s no longer the case.
Biden don’t care about working people. He’s spending more to help Ukraine than homeless people in the us
@@garyoakham9723 technically that is just handing money to the rich....but ya...war....guns
I agree
I grew up as the working poor
This video underscores a critical yet frequently ignored reality: the shrinking of the American middle class isn't just about income, but also about diminishing economic security and opportunity. It's startling to learn that in 2018, a third of middle-income adults couldn't afford a $400 emergency expense, illustrating the fragility beneath the surface. This situation reflects broader systemic issues, where economic growth no longer equates to widespread prosperity. Such insights compel us to rethink the policies and structures that define economic success in our society.
$1200/month for car payments and insurance?! 😳
Well yeah, you need a Cadillac to get to work, right????
Letting speculators buy up homes they clearly don't intend to live in & then jack their prices way up all over the country doesn't help one bit.
That’s literally what this country was founded on doofus. This is destiny manifest.
@@user-hf2dr7sh4y yep. The Fed, centeal banks and global elites at the IMF are the one world government. Debt slavery for the global population is the plan and everything is going smoothly. It's a debt-based slave system. The only solution is sound money and small government. Unfortunately, only a revolution can set us in the right direction
I see a good amount of people saying they are taxed to death and how that's a main problem, but what if the problem was WHERE our taxes went? Many other countries have higher tax rates yet enjoy much better lives than many of us here in the land of dreams. I do recognize that we are essentially allowing other nations to live better lives by keeping them safe* with our ridiculous military spending, but isn't there even a small portion we can take from our military spending to invest in social policies, universal health care, etc. ?
your heart is in the right place but your military does not exist to protect other countries. It exists to subjugate them and destroy those that step out of line by threatening the hegemony of the American dollar/oil status quo.
@LightSound Geometry focus on the evils of imperialism, rather than the fact that they get well paid and retire with life left to live (if they live through their murderous invasions 😬).
No good reason why all Americans couldn't be well paid and afford to retire young. that is the sort of thing Americans should demand from their system. But instead America is the murderous regime that simultaneously treats it's own population like disposable wage slaves.
But I think you have a good point, their decent salaries foster a viscious loyalty from a base of the population that otherwise would not be afforded a higher quality lifestyle. It is a welfare program, exploited by the elites, in a society brainwashed against the common good.
@LightSound Geometry imagine if the funding was diverted to actually benefit and educate and provide for the citizens of the US.
Dr Michael Parenti and Chris Hedges are the best commentators on the reality of American imperialism.
@LightSound Geometry they will take the western world down with them. but I have faith the end of the neoliberal nightmare is in sight within our lifetime.
I was with you until the "keeping other countries safe". That level of delusion is clinical.
My grandpa was a government employee and my grandma was a lunch lady, they were able to buy a small but still nice house, raise two kids who both went to collage, and have a somewhat nice sum of money saved up for retirement. They now are retired and have multiple house. That kid who became one of my parents now is working with no end in sight, some money issues had existed but for now we seem stable. Both my parents work their butts off just so everyone in my family can survive and live where we do. It is crazy to think that one salary in the 1960's was enough to support a whole family despite being way lower compared to today, while two people with salaries in 2022 is unable to cover every cost, although it is still possible to save some of that money thankfully. Houses are so expensive now, infact inflation as a whole has risen a lot more than salaries have.
Life is literally to expensive to live.
Who are we kidding? If you don't have a net worth more than 300k and a emergency saving for 6 months, you are not a middle-class, period (mic dropped.)
Lol, there are a very small number of folks who have those things. I am a millennial, and I don't know anyone that has savings that could last them 6 months. I just started my career in software engineering, and while i make a good salary, it will take me several years (at least) to save up and have savings that could last 6 months
Edit: correction, i do not know anyone my age that has these things. I do however know some gen X folks that do have this kind of money
@@MusicGameFinatic999 I have about $220k+ NW at 27 years old. Senior mechanical engineer in Midwest
@@MusicGameFinatic999 I'm 36 with two kids. 2M net worth, 6 yrs of saved expenses and I started off as a security guard with no fancy degree. No, I didn't "invest" in cryptos or WSB FDs. A young coder can easily be where I am today in 5 years (less, if you are a dual income couple) if he/she know how to handle the money.
@@lastempire7302 what is your profession?
@@Bwize716 I'm just a regular 9-5er making no more than 70k (excluding investment income of course)
Chantal said it perfectly - even if you have a great job making good money, its not enough. I haven't been able to save in years just because of keeping up with monthly expenses. Our parents don't fully understand our dilemma, but we now have expenses that didn't exist 40 years ago: cell phone cost + bills, internet bill, computers and electronic devices. 33 years ago, my mom bought a house as a single mother with two kids on a $21,000 salary. I make 3x that without debt and I'm struggling to get a mortgage.
Is everything you spend money on a necessity?
@Pork n jeans ever considered that there are people working remotely / online? especially since covid, we've all become more dependent on electronic devices. same for students too since they've been attending online classes.
@@swiftiepharbz in that case being able to work remotely and the savings that come from it should more than cover the expenses of the computing equipment required for remote work.
@Pork n jeans O boy.. we just met a person awoken from a cryo-sleep!!
Even your boss will kick you out once he finds out you can't be reached via any messenger or SMS. /facepalm
@Pork n jeans people literally depend on those devices as they are required for their jobs, which is what they need for their income. if you can live without electronic devices and your job doesn't require it, cool. but plenty depend on it now. not just for entertainment, but as well as searching and applying for work, communicating with their colleagues, etc.
In the late 1970s my grandmother was studying the Bible with an Italian man y neighbor. He had said then, that there would come a time when only 2 classes of people would exist. The wealthy y the poor.
Honestly, after I'm done with college I'm probably going to live with my parents (I am going to major in CS so I can work remote) and save for a down payment on a house and probably a business too, its the only chance I'll really have of making it into the middle class even with a great salary.
One thing to remember is on the outside a middle class family might look to be doing well, but behind the scenes they may be pay check to pay check buried in debt
Then get on a budget. The only excuse for that is an emergency. You are not entitled to new cars, a bigger house, new furniture etc...because you want it but can't afford it..
@@staceystrukel1917 exactly, only for emergency reason. But the last two decades I've noticed most people are on debts and buying stuff , when they really can't afford
@@staceystrukel1917 absolutely. Most people are brainwashed by marketing and consumerism. My motto is, live below your means, and that is what I instilled into my children.
It brings immense peace, joy and contentment knowing that I don’t have crippling debts, for mainly useless consumer goods.
This principle has allowed me to take early retirement and have time to myself whilst I’m still relatively young and healthy.
I've been teaching for 15 years and have my Master's. I bought my house for $55,000 (foreclosure). I count every penny in and out. I'm single. (stay with me, getting to point) I don't have Netflix, Hulu, Amazon Prime, or any other subscription service. I don't get my hair or nails done. I don't go shopping. I sold my car and bought a piece of junk in cash with super cheap insurance because it's a 1999. I canceled my life insurance. I can't keep up!!!!!! If I want to do anything extra, I have to have a roommate and/or a side hustle. I thought about adopting a kid. JUST by adding a kid to my insurance I would be going into the red each month (forget about getting the poor thing food or clothing). I'm very good with my money, but the cost of living keeps LEAPING while my paycheck, at best, is creeping up. The money I have left at the end of each month is always taken away by something (MRI, plumbing issue, etc.).
In your foot I would consider relocation to another country. You are native speaker of english so you could teach it. Just think about it. You could try to go to another country for couple of months and then decide if it's worth it
Great you have your own home.
Husband material here for free, hardworking, good with finances and we can succeed together, very handy. What do you think
Foster a child, then. The kid would have somewhere decent to live and you would get a small stipend for helping out!
@@maxlemusa3520 awesome dude
Same thing happened in Ireland. In the 80's my father's wage supported 3 children and my mother was a housewife. Had a nice house and were comfortable enough. There's no way you could do that on one wage today. And now nobody I know can afford to have 3 children unless they are totally depended on social welfare.
I think part of the problem is that builders speculate by building huge houses, rather than small ones. So you have houses that middle class people can't afford. What they can afford are tiny houses, so they move into former working class neighborhoods and drive up the prices. Then there's the consumption problem: Americans overspend like crazy, in addition to having to save up for college.
You don't have to save up for college though having a little piggy bank is a good idea. Take up a 32 hour job that comes with benefits. Go to your local community college in the evening and work on your associate's. Then transfer to a public in-state 4 year institution to complete the remaining program. Of course, when you study part time, you will take longer. But it forces you to stop wasting time, and plan your precious time accordingly, you also learn how to manage your money and stop the rat race. You work during the days and study in the evening (and weekend) and let the rest party. You will graduate later of course but....you have no debt, work experience, you already contributed to a 401K and/or a ROTH. It can be done when you adopt a quasi minimalist lifestyle. I am a product of that principle and I now work in higher ed where I advocate for this strategy, especially the way the job market is now.
@@mathisnotforthefaintofheart I knew a guy who went from high school dropout to GED to Chipotle to Hospital orderly by the time he was 18. While a hospital orderly, he took a 2-year nursing degree (partly at their expense) and had the degree (and a raise) by age 20. He continued working on the BS degree, and had the full nurse's license at 21. He worked for another 2 years, saved up, and got a partial scholarship to Meharry medical college. By the time he started residency, he had no loans to pay back.
@@MondoBeno So he played it smart! That's how it can be done
The housing market is through the roof and very competitive in bidding for a home. Us late millennials are having hard time looking for a home and are forced into a rental apartment thats owned by a commercialized property owner that I'll be paying similar to a 30 year mortgage rate. Also getting crucified by the outrageous taxes on the middle-class.
And as potential home buyers are pushed out of the market, tattooed to become renters, the rent goes up and renters who lived in the apartments before these newcomers have to move and there is nowhere to go. In the meantime some homeless shelters charge for a cot on a cement floor.
Yea it’s tough time for young people trying to buy a home, guy at work keeps on getting his bids beat out even offers over asking price in cash.
All brought to you by the government.
24. Probably will live with my family until 30 and won't ever have a kid
@@Sophie3647s why? Just live within your income.
Everyone who works for a living is working class. The ones that done are the ruling class. They divide the working class into other classes to divide and rule them. Stand together with you fellow working class people.
That's why We, the ruling class, need to seed more dividers like lgbt, political, racial ideologies, etc. into the society. There will be armies of pro- and anti- among the working class, they'll forget about their real enemy and growing wealth gap. Even if those ideologies won't work, who cares? Divide and conquer, that's our motto!
@@allykid4720 that’s what I’ve been preaching as well. Stop yellow dog voting!!! Voting for a representative because of your race is got to be the stupidest logic. Politicians don’t care about us, they just like power.
Yep, exactly right, in fact the term “Middle class” was popularised in the 1950’s to describe the rising standard of living for the current generation of working class who didn’t like the stigma of that term.
If you trade your labour for a wage you are working class. Doesn’t matter if you make 25k a year or 125k.
Sorry can't do it Too distracted by racism
lol no.
What Chantal said starting at minute 8:15 spoke to me so much! She is on POINT with that comment!
I feel bad for families going through this. I decided to live child free and most of the decision was just no desire to raise a kid but looking at what a huge financial burden it is turned me away from it. It just isn't worth it to have a family anymore. I'd rather retire earlier and be secure financially. Notice how the one mom interviewed cited taxes as her biggest woes, that gets glossed over since this is CNBC....lower payroll taxes will fix this but there's too much social spending. Thank god BBB failed. Now we just need to fix social security, that's the next failed social insurance system that'll raise payroll taxes tremendously in the next decade.
Maybe…just maybe, stop funding and fueling wars around the world and reinvest that in the people and our country.
Maybe…tax the oligarchs, the super ridiculously wealthy people of the country, that literally own the country. Make them accountable for their incomes and tax them.
But no because the tax laws are made by these people, it will never change.
Insane!
Let me explain some basic economics to you. If the middle class in 1980 was defined by being able to afford a home and a car or two, and the same "middle class income" today can afford a single car and barely make ends meet on their rent/mortgage; then the latter is not in the middle class.
America is a hellhole
If you compare that too the amount of subscriptions we have these days... Or the amount of ''lazy'' services... Like I live in the Netherlands... We dont even have to go to a bank anymore, we can fix everything on our phone... We dont even have to wait for groceries anymore, we can get them within 10minutes.... My grandparents lived (and worked) on the fields... Like please put it in placement of time.
You say it correctly the middle class is nowadays not anymore the definition of what it was back in the days simply because we have a lot of hidden costs... They either drink a lot or smoke or they have a spotify or netflix or disney+ or amazonprime subscription... Like honestly it is a joke. Get rid of all those hidden costs and you can afford it..
@@tim3440 yes The high living standards the less peace , try spending money for useful things ain't it right? Mr Tim
@@hoonigan1423 WEll that would be my take on it yes. Or at least share stuff... :p Like cme on... You are not obligated to have everything.
@@hermeslein6614 edgy
1. Increased population. More competition for resources and jobs.
2. Devaluation of the dollar.
3. Automation
4. College degrees becoming diluted.
5. Increasing COL in cities (goes back to one).
6. Rising costs in manufacturing meant jobs were exported to cheaper wage countries.
7. Pivoting into a more service focused economy instead of manufacturing.
8. Foreign investors squeezing the housing market.
The list can keep going and going. But I think these are the major points.
There is also the refusal of middle class to stop living above their means rather than below which could sustain them.
It's not just foreign real estate investors. Home grown ones are just as bad. My friend works at one. They all call around and raise prices to meet the average every year (not price fixing apparently) , even with high vacancy (40%).
In order words: Overpopulation!
Also employers and companies undervaluing jobs and underpaying staff
Open borders and taking care of illegals costs a lot of money.
Part of the problem is we’ve come to expect and want more. When I was a kid, a 3 bedroom home, one bath, one family car, one phone in the home, one TV set, shared rooms for children, etc. was the norm. Now we expect what was considered a mansion, big screen TVs in every room, each child has their own room,designer clothes, special sports equipment, a phone and computer ( or more) for each person, every person has their own car (sometimes more than one). Specialty vehicles, personal vacations and trips, boats and rvs in the driveway, eating out regularly, going to concerts and entertainment, spas, etc., hair stylists, and every new toy that comes along. As the desire for all of these things increased, so did the cost. What we now consider “ necessary” was considered “ luxury” a decade or so ago. We are part of the problem.
No
I deliberately lived in a low income neighborhood close to work and GREATLY cut down on my living expenses, so I could save, invest, and retire early.
So that's impossible now?
People can't move, adapt, get more education, change jobs, change behavior?
While I grew up, that was all completely normal (in the 70's).
Wages have been stagnant for decades (when adjusted for inflation) while the prices of homes, cars, food, gas, college etc. have skyrocketed. Corporations and many employers are extreme capitalists who use their earnings for stock buybacks and CEO bonuses instead of paying a fair wage. The US government has even incentivized these actions with huge tax cuts and subsidies. Until we get the lobbyists and money out of politics nothing will change
Franchise own businesses not corporation that have huge debt because of government , result prices go up
Well everyone is fighting about what Joe Rogan said 20 years ago and what gender they are today…. Sooooo I don’t see us getting together and demanding meaningful change anytime soon. We’re on a sinking ship. Full of asshats on their phones not even paying attention to the ship sinking. Fun stuff 👍
The corollary to that is: if you can't beat 'em, join 'em.
I watched and gnashed my teeth in 2008 when TARP was passed for the Too Big to Fail banks, shortly after they collapsed the economy with their recklessness. Where was the justice?!
Today, I'm a shareholder of JPM, GS, and C, among others. God is dead; the only justice is that which we make for ourselves.
@@StochasticUniverse god certainly is dead! Finally someone who isn’t a mindless religious nut preaching how Jesus will save us all.
Very very true
Apartment rent, auto leasing, no pensions...I feel real bad for the younger generation who will own nothing in their lifetime.
💯
You will own nothing, and you will be happy
@@Demopans5990 yep. The great reset.
It’s certainly not helping us that we have one recession after another. Companies letting go of older workers to save money while the same workers are retiring early, struggling to survive from retirement monies they lived off of during the recessions.
Our government needs to keep us poor so we're easier to control.
At least someone gets it.
You aren't actually middle class if you live a middle class lifestyle but can't afford to live that lifestyle for a sustained amount of time.
Exactly!
The definition of middle class lifestyle is constantly changing
Middle class is people who do not need another person to sign their paychecks as they have their own means of income, but who also do not have the kind of leverageable capital to be signing other people’s paychecks. These are lawyers, doctors, people who run their own “office" or business that is really only themselves or their business partners. You could make $200,000 and still be just a well paid worker. That’s lower class, not middle class. This has been the definition of the middle class since the 1800s.
You are saying that the actual middle class is lower than the statistics? That’s believable.
@@csmlyly5736 That's the definition of the bourgeoisie as compared to the lords and ladies or landlords.
Paying $1200 a month for 2 cars, this is insane...
Yep, yet many people don't want to take accountability for those choices. LOL
And $280 a month on a phone bill.... for most likely 2 people...
@@NoOne-gp5hz I use Mint Mobile. My phone cost me $10 a month, but I had to prepay for six months and use an older phone I already owned.
@@danieldaniels7571 My wife and I use Mint as well on our iPhone 13s. T-Mobile network, $40/month total.
It's not cheap to impress others
The problem is that people dont want to buy a 3-4 thousand dollar car, instead they go and buy cars they cant afford and have to pay insane monthly payments and insurance…🤣🤣
All I have the power to do is live and exist in this world under these conditions. It’s frustrating to think that none of us have the power to change this and the people who do aren’t going to for one reason or another.
“Most US families today will experience being poor for a period of time.” If that’s not a sad and terrifying state of affairs then I don’t know what is. The USA has become a rampant cash funnel to the top and it has us all on the fast track to poverty.
The rich want feudalism to happen again, and they dont understand it never worked all throughout history, French Revolution, American Revolution, Russian Revolution, etc. etc.
That capitalism uncontrolled. They need to leash those rich and make them pay they taxes.
@@thejquinn yeah but the difference then to now is the elite have technology rivaling that of what we thought gods could do.
Weather control, sound weapons, Directed energy weapons. Robots, bioweapons, microwave emitters.
And that's just the weapons WE can perceive.
@@thejquinn The thing is back then people had guts and the government didn't had so much time to control population as they pleased. The result of the modern world is the last 2 generations being masochistic of their governments struggle for total power.
@@TylerSolvestri Well the US government feared its people till the 70s, and co-opting the market narrative and created slogans like "greed is good", and actively pushed policies to destroy the middle class ie NAFTA
I heard 80% of Americans live paycheck to paycheck, 70% of all U.S. workers make less than $50k per year, and only 7% of all U.S. workers are in unions, plus with massive college debt. So then how is it that 59% of people today are in the middle class, same as in 1985? Someone is lying here.
Of course it's big fat lie. The problem with modern economics is ideological so it doesn't emphasize on issues such as homelessness, higher educational costs, Healthcare and poverty.
Because the concept of middle class is poorly defined. Go ahead and try to describe what exactly makes somebody middle class. Can't do it based off income because obviously cost of living is highly variable based on location. Can't do lifestyle because that too is so variable (ie living beyond means vs frugal lifestyle). So if it's hard to define then the polling and statistics becomes very fuzzy.
Middle Class is something hard to define. When I was in business school one of my professors told me that the definition of middle class keeps changing. It depends with how one sees himself or herself. For instance, someone that has college degree qualifies to be in the middle class owing to his level of education even though he may not be having a well paying job . Someone that has a job and therefore able to get credit cards to purchase what he needs is seen to be in middle class. Middle class can represent a lot of stuff... Of course people in the middle also struggle a lot but they base their satisfaction on aspirations. Even their spending habits are based on aspirations
There is no such thing as a "standard middle class" for a country as large as the US. Cities like Miami, LA, NY, you need tens of thousands more a year to be considered middle class, vs western Ohio or some small town in Utah. The other problem is the image of what middle class is. Today, people envision two cars, a 2500 square foot home, electronics all over the place and a couple nice vacations a year as middle class. That used to be considered upper class.
If you only have $400 in the bank you are not middle class.
I’m a 28 year old veteran that moved back home after the Army. I’m in school and have a part time job making hardly anything as well as being in the national guard. My mom has let me live here for the past year and a half as long as I pay her as much money as I can manage to set aside. When I move out she’s going to give it back to me to help pay rent for a few months. If I didn’t have her I’d be on the street right now because of how high rent is everywhere. The world we live in right now is really scary.
People wonder why Quiet quitting is a thing!
Amazing how they got through the whole video without defining “middle class.”
That's because there isn't a universal definition for it, aside from being in the middle.
As a 60 year old, this all started with Reagan’s trickle down economics, lowering the tax rate for the rich and raising mine and at the same time getting rid of or lowering tax deductions . Then every administration since Reagan continued it in some form or another
Trickle Down is a Myth made up by the left. Has nothing to do with that. This entire video ignore this.
NAFTA caused much of it. Globalization. When jobs go overseas, the $ goes out and doesn’t come back in. Trade imbalance is applying downward pressure. Ridiculous education costs, transportation costs in the form of easy auto credit, and housing increases erode the middle classes ability to survive as more downward pressure is also rooted there.
We didn’t have Mobile Phone Bills, Expensive auto loans 5-6-7 years, and didn’t have $ flushed into CATV/Internet and phone contracts, other subscriptions, software subs, streaming subs. None of that existed.
This isn’t a tax policy issue, it’s a federal/state spending one, and much of it has to do with trade imbalance. Theres no means of production any longer. A nation must produce something of value, or you don’t have a nation. The less we produce the less value we bring to the table.
The societies producing those goods keep their $ inside their world, it never comes back here.
Growth of our Means of Production in any type of assett job will provide upwards pressure on income for middle class, all these issue becomes non issues. Right now the top benefits from the profit saved from sending it to cheap labor market, and all the supply chains needed to get those goods here.
Why this whole concept eludes leftists is beyond comprehension.
@@pn102 Wait. You don't believe in wealth inequality?
@@NN-sp9tu Wait!, you have beliefs or are those just assigned opinions from hive thinkers parroting a false narrative?
@@pn102 There actually exists decades of data to back up the fact that wealth inequality has increased dramatically over time. So anyone who disagrees with you must not be able to think for themselves even if they’re relying on hard data - maybe you don’t understand what evidence is or how it works?
@@NN-sp9tu - facts are pesky things. What good data analysts accept is that all data is flawed and only tells a portion of the picture. What the sociologists know is that what comes after “because” doesn’t matter.The opinion assigners know this also, and use it to attach buzz words to the topic. A tell is when the word “equality” is attached. Theres a good article a few weeks back in the WSJ that discusses how 90% of everything is crap.
Change your frame. It’s 2022. Our understanding of reality is subjective to oneself’s world view. That doesn’t make it so.
I'm 55 and retired. Only way I made real money i live off today is stock market and housing rises. How is this sustainable? If you think about it investing in 401k is investing in low wages off shoring and other screwing of workers for high profit for share holders. My Houses doubled every 5-7 years to where if I had to purchase when I sold my salary could not afford and I was a professional. Working class is totally screwed and thank goodness they are finding out power of unions again like at Amazon. Every working class person should unionize bc it's the way to middle class like they used to be.
$100,000 + a year?! Wtf- we live off of $80,000 /yr for a family of 4!!
My rent went up 20% 2 years in a row. That's illegal in most other countries.... even 3rd world countries don't allow that.
They probably have vacancies did you check?
Wow. Note to self: don't ever become a landlord in a 3rd world country.
Do they have vacancies? The average house price is also up 20%... Or better said sometimes the costs are up 20%...
WHy? Because America prints and prints and prints and prints... People live above their means..
lol, we are having it rough in third world countries don't be fooled.
@@Jbkoyi Its hillarious if people consider high housing prices with food shortages or something. Its a joke if people compare it with third world countries.
Feel for you sir.
I’m no economist but when housing, good, gas, food, and everything else increase 10-20% and my income only goes up 5% and most jobs require a 4-year degree, which I have and I’m not living lavishly, and I can barely save and invest.
I am in the same boat too I feel your pain
Our economy is becoming extremely inefficient.
That's only a yearly thing, this has happened over decades though. Trick down policies.
Well-off people don't get rich from a good salary, they leverage their debt. Instead of paying your car loan or mortgage off early take that money and invest it in something with a higher return then the interest. Do the same with low interest loans.
@@TheRevolucas So essentially, you're telling people to bet money that isn't really theirs?
I'm a big fan of investing. If you have extra cash, then invest it! The worst that can happen is you lose the money. Which is fine because, well, it wasn't going to anything else anyway. The best is that you make a nice profit.
Investing comes with risks. If that person invests poorly, then their debt will only rack up and put them in a worse position than before. Diversifying helps minimize the risk, but it does not eliminate it. For someone already struggling with money and in debt, taking a loan and investing is NOT the way to go. For the wealthy, I can see that they might have the money already to fall back on should their investments fall through.
Also, people renting and in debt are not able to put a mortgage on their home or obtain a low-interest loan. Your advice just doesn't work here.
The people who say that the middle class is “squeezed” are the same who say the mass starvation in Europe is “food insecurity”.
The middle class' disappearance is an inevitable consequence of a couple of facts of the economy as presently constituted:
(1) Many goods & and services people cannot create for themselves and must purchase
(2) Many if not most (and maybe arguably all, in the broadest sense) people specifically cannot create for themselves ALL the things necessary for even minimal subsistence (enough food to not starve, water to die of thirst, and enough shelter from the elements in the form of clothing and housing to not die of exposure), and therefore must buy those things (or die)
(3) Money, which is the primary means of transacting as described above, is generated in essentially two radically different ways--wages for time spent in labor, and rent or portion of produce leveraged from ownership i.e. 'capital gains'.
As a result of all these facts, the majority of people are dependent upon wages, they MUST work, making whatever they can in the finite time they have to work, and hope its enough to cover their living expenses. Most people have little to no additional income above and beyond that derived from capital gains to add to their wages, however for those that do, this is an extra income source, the only other potential source of income besides wage labor, that all else being equal then, is obviously an advantage to them in purchasing power competition for whatever product exists for a given economy at a given time. This means that in the long run, the advantages of capital will result in those with capital being both the best positioned to win the competition to purchase scarce resources AND ALSO the best positioned to have surplus after that, to further accumulate capital, and further consolidate their already advantageous position (in terms of income generating capacity) even further into advantage. The net result of all this that is crucially relevant here , is a "snowballing" effect to the ownership of money/capital--the more money one has, all else being equal, the comparatively easier it is to have enough left over after a given amount of consumption/satisfaction of needs and wants to leverage into MORE income, MORE money, in the future. And the long term net result of THAT, is the bifurcation of people into two classes, defined by which side of the margin of income "breaking even" with living expenses they fall on. The comparative advantage of capital accumulation causes a feedback loop, that makes it more and more essential over time, to have that as a source of income, to be competitive at all in the first place, in terms of having sufficient income to accumulate capital. This makes it increasingly unlikely wage labor alone is "enough" to maintain enough income to accumulate enough capital to keep net positive (in real purchasing power terms) accumulating income. This 'arms race' to accumulate capital, to remain competitive in accumulating capital, as an ever more important determinant of income in real purchasing power terms (of the actual relative share of economic power one wields at any given point in time), therefore creates a pressure that drives the margin of "break even" ever upwards, which is realized as the proportion of people who are able to accumulate enough capital to continue accumulating more capital, shrinks and shrinks, and a greater and greater proportion of people find themselves only able survive by losing capital, squeezing more out of their own wage labor, and eventually (at the "lowest" ends) just NOT being able to do it sustainably at all--to be in a very real sense forced out of existence.
These dynamics over time TEND towards monopoly--towards centralization of wealth into ever fewer hands--and therefore it is impossible, long term, for any "intermediary middle class" to exist in between those able to continue accumulating capital and those not. Given time, the dynamics laid out above will have every person EITHER "rise up," at least temporarily, into the shrinking ranks of the former group, OR (much more statistically likely) "sink down" into the growing latter group. The results that one would expect from all of the foregoing, are exactly what we are witnessing in the world ongoing--a higher and higher proportion of people whose income is stagnating or even diminishing in real purchasing power terms, and a smaller and smaller proportion that accumulates all real growth in wealth and income, while whatever "middle class" we imagine existed previously 'in between' is torn asunder, its former members divided up and absorbed into one of the other two groups. That is truly why the middle class is disappearing.