There was a time when the clear majority in America was the middle class. Those days are over.
"The middle class has been broken up" said financial planner Richard Rosso, "The middle part, which was the thickest part of the country from an income and wealth perspective has really come apart. Part of that has gone to the upper income echelon's, and the other part has gone lower."
The number of adults who live in middle class households dropped from 61% in 1971, to 50% in 2021.
"The median income if you look at lower income households, grew slower through say 1970 to 2020" Rosso told KTRH, "So maybe that's why you see a lot of social turmoil today right, is that you see a lot of lower income households that are having a tougher time."
With the Biden-flation squeezing the U.S. at a 40-year high, don't expect the tough times to end, anytime soon.
"Wages, which is the lifeblood of a middle class household have stagnated" Rosso noted, "Sure, wages are up now, but guess what? Inflation is greater than the wage growth we're seeing, and I'm thinking wage growth is going to start to top out here, and inflation is going to remain, and that's going to put even more pressure on middle income households."
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