The middle class is hurting. Badly.
In the past 50 years, expenses have risen, housing costs have increased, college tuition rates have shot up, and health care costs have skyrocketed. But middle-class incomes haven’t kept pace at all.
For middle-class people, the American dream of owning a home, sending kids to college, and providing basic health care for the family is no longer within reach – even after adjusting for inflation.
People without a college degree used to be able to find positions with good wages in manufacturing. Those jobs have disappeared.
Now people with this level of education must turn to the low-paying services sectors, where the best they can do is earn wages that are near or below poverty level. Read on to understand the fallout.
Change in Household Income & Major Expenses, 1970 - 2022 (Inflation-Adjusted 2022 USD)
| Household Income Brackets | Household Expenses | ||||||
|---|---|---|---|---|---|---|---|
| Year | Top 5% | Next 15% | Middle 60% | Bottom 20% | Average Household Health Care | Average Tuition and Fees | Median Housing Value |
| 1970 | 251,058 | 134,380 | 66,222 | 15,027 | 8,817 | 4,866 | 177,091 |
| 2022 | 499,900 | 203,100 | 79,493 | 16,120 | 35,565 | 14,307 | 457,475 |
| % Change | 99% | 51% | 20% | 7% | 303% | 211% | 158% |
- Source: See More Information
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Average U.S. Income by Education Attainment (Inflation-Adjusted 2021 USD)
| Year | Less Than High School | High School Degree | Bachelor's and Advanced Degree |
|---|---|---|---|
| Q2 2022 | 33,760 | 41,061 | 75,802 |
| 2020 | 32,549 | 41,811 | 76,073 |
| 2010 | 27,517 | 39,768 | 71,557 |
| 2000 | 29,416 | 41,694 | 73,667 |
| 1990 | 33,243 | 42,349 | 69,996 |
| 1980 | 41,125 | 49,276 | 69,654 |
- Current Population Survey: Obtained from Census Bureau
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U.S. Average Compensations by Industry - 2023
| Industry | Average Annual Pay | Estimated Annual Fringe Benefits | Total Annual Compensation |
|---|---|---|---|
| Transport Manufacturers | $70,123.30 | $20,022.60 | $90,145.90 |
| Primary Metal Manufacturing | $62,107.14 | $20,446.61 | $82,553.74 |
| Chemical Manufacturing | $63,445.20 | $19,551.48 | $82,996.68 |
| Machinery Manufacturing | $55,792.78 | $18,939.02 | $74,731.80 |
| Gas Station Employees | $33,156.86 | $4,262.54 | $37,419.41 |
| Accommodation | $31,415.07 | $2,108.70 | $33,523.78 |
| Food & Drink Cashiers | $24,649.09 | $3,670.52 | $28,319.62 |
| Food Services | $22,093.92 | $1,716.88 | $23,810.80 |
- Current Employment Statistics: Obtained from BLS
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Average Annual Wage Increases from 2010 to 2021
| Country | Avg % Change |
|---|---|
| China | 12.33% |
| U.S. | 2.92% |
- Source: OECD
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BLS Estimated Fringe Benefits ($ per Hour Worked)
| Industry | Total Hourly Benefits |
|---|---|
| Manufacturing Industry | 14.14 |
| Construction Industry | 13.05 |
| Leisure and Hospitality | 3.41 |
| Accommodation and Food Services | 3.17 |
- Source: BLS
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Unemployment Rate over time in U.S.
| Month | Unemployment Rate (%) |
|---|---|
| November 2022 | 3.6 |
| December 2022 | 3.5 |
| January 2023 | 3.4 |
| February 2023 | 3.6 |
| March 2023 | 3.5 |
| April 2023 | 3.4 |
| May 2023 | 3.7 |
| June 2023 | 3.6 |
| July 2023 | 3.5 |
| August 2023 | 3.8 |
| September 2023 | 3.8 |
- Source: BLS
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Average Federal Debt per Person in the US Population (Inflation-Adjusted 2023 USD)
| Year | Federal Debt Per Capita |
|---|---|
| 1952 | $17,730 |
| 1960 | $15,950 |
| 1980 | $13,680 |
| 2000 | $34,110 |
| 2020 | $84,918 |
| Sept 2023 | $98,859 |
- Source: U.S. Treasury Dept.
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