The American middle class has been slowly put into a chokehold over the last four decades, but even more so after the failed Bidenomics experiment of the last Presidential administration. The cost of living has gone up dramatically, while the growth of salaries for people has remained stagnant.
It has created a sputtering middle class that is struggling to afford the bare basics of live, especially those with a spouse or children. But amid all the economic issues, what qualifies as middle class now? New findings show that in Houston, making between $41,000 per year and $125,000 per year qualifies you as middle class.
That is not only a wide range, but people who earn in the lower half of that bracket will argue the numbers are nonsense.
Economist Hank Lewis says $41K for a single person, with no debt, would be enough for middle class living. But if you have a family, or plan to, it is a different story.
"If you are married and going to have children, that $125,000 might be more appropriate, but that would have to be after tax income, and assumptions of little to no student loan debt," he says.
The median income in Houston is about $62,000 per year, which you could live middle class on, if you are single. But depending on where you live, that might not be enough, especially inside the 610 Loop.
The numbers also do not factor in the suburbs, which Lewis says would inflate the numbers quite a bit.
So, what is middle class? Well, the short answer is it depends. No one really knows. It all depends on where you live, what you do, and your perception of middle class.
"It is not just perception though, it is also about what you are able to do with income you have, and not feel squeezed," says Lewis. "Unfortunately, a lot of people in the middle class feel squeezed because the essential costs we pay are going up and not going down."
Those essentials include things like rent, groceries, and car payments. Most people could tell you making $40,000 a year is not really enough for a car payment, and barely enough for rent.
Middle class used to mean owning a home, upgrading cars every ten years, and being able to take vacations. Now, it is just a fight to make ends meet.
Basically, the definition of middle class has become warped. Until we start addressing the cost of basic essentials, the middle class will continue rolling further down the hill.
"Changes in policies, global economy, and technology, have shaken things up so much, the typical middle class income seems to be so much more elusive.
As inflation continues to run high, and prices show no sign of coming down, the middle class will only continue slipping and falling behind.
The definition has changed, and the middle class is now essentially a guessing game.
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