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Frank Tian

Middle Class is Mad

The economic data is great,

But the middle class is mad.


Why?


This Time article details the struggle of today’s middle class.

And the phenomenon is not limited to the US.


In the early phase of the pandemic,

The middle class had an opportunity to catch up:

  • Increased savings

  • Suppressed spending

  • Various assistance programs

Two years into the pandemic,

The middle class sees a greater risk of being left behind:

  • More expensive housing

  • Heightened living cost

  • The shrinking wallet

In the past year,

Average hourly earnings decreased.

It is down 2.7% after an adjustment for inflation.


It actually has been in the making for a while.


In the last 20 years,

American’s income growth significantly lags

The rising cost of 3 most important spending:

  • Housing

  • Healthcare

  • Higher Education

For individuals,

It is frustrating that you cannot keep up with hard work.


For society,

It is dangerous to have a crumbling middle class.


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