Financial security eludes two-thirds of U.S. adults due to ‘Reaganomics’

A recent analysis of data from the Federal Reserve has revealed that only one-third of U.S. adults possess the financial security necessary to meet the traditional definition of what it means to be middle class.

Before the 1980s, the middle class in the United States was generally more economically secure compared to recent decades but the latest findings underscore a growing trend of economic insecurity and declining living standards across the country, prompting calls for action that have been largely ignored by political leaders.

According to the analysis by The Washington Post, a significant portion of the American population lacks the financial stability typically associated with middle-class status.

Factors such as stagnant wages, rising living costs, and limited access to affordable housing contribute to this troubling trend, leaving many individuals and families struggling to make ends meet.

In the face of this economic challenge, political activists and leaders have been called upon to address the root causes of financial insecurity and advocate for policies that promote economic opportunity and prosperity for all Americans.

Among them is Lisa McCormick, a prominent figure in New Jersey politics, who has been vocal in addressing the declining standard of living for Americans.

“There is widespread agreement among Americans regarding what constitutes being part of the middle class,” said McCormick. “According to recent research, these components include having a secure job, the ability to save money for the future, the ability to afford an emergency expense of $1,000 without going into debt, paying all bills on time without worry, and having health insurance.”

The problem is, when people like Lisa McCormick run for elected office, they lose because they do not raise millions of dollars to finance comprehensive campaigns. Those are executed by politicians who curry favor among donors who do not want to fix our government because it is working fine for them.

The decline of the middle class in the United States is a consequence of fundamental problems deeply rooted in our economy, social institutions, and history that drastically changed how Americans experience life.

“Middle class-ness and predictability are very tied in the American imagination,” said Caitlin Zaloom, an anthropology professor at New York University. “Sometimes that is about security in the present, but it also means feeling secure about where life is going.”

“These factors underscore the importance of financial stability and access to essential services in defining middle-class life,” said McCormick. “Moreover, the ability to maintain a desired standard of living in retirement, having paid sick leave, and having time and money for vacations. Factors like homeownership, the ability to afford dining out, and a college education are seen as component of middle-class life, to a lesser extent.”

While McCormick has consistently highlighted the need for policies that uplift working-class families and ensure economic security for all, other political figures have faced criticism for their perceived lack of action.

Tammy Murphy, Congressman Andy Kim, and Patricia Campos-Medina all supported Senator Bob Menendez during the 2018 elections, despite the corrupt incumbent having a progressive challenger advocating for major changes in the nation’s approach to issues such as income inequality, universal healthcare, and housing affordability.

Since the implementation of Reaganomics in the early 1980s, stagnant wages, rising living costs, and limited access to affordable housing have intensified the economic challenges faced by working Americans.

According to data from the Economic Policy Institute, inflation-adjusted wages for the median worker grew by only 11.6% between 1979 and 2019, while productivity increased by 70.3% over the same period.

This disparity between wage growth and productivity gains has eliminated many workers from the ranks of the American middle class.

Over the past few decades, the costs of essential goods and services, such as healthcare, education, and housing, have risen significantly faster than inflation and wage growth.

For example, data from the U.S. Bureau of Labor Statistics shows that the cost of healthcare has more than doubled since 1984, outpacing both general inflation and wage increases. Similarly, the cost of college tuition has risen at a much faster rate than both inflation and family incomes, making higher education increasingly unaffordable for many families.

According to the National Low Income Housing Coalition, there is a shortage of over 7 million affordable and available rental homes for extremely low-income renters in the United States. As a result, millions of families are forced to spend a disproportionate amount of their income on housing, often foregoing other necessities or facing the risk of homelessness.

This inflation has also squeezed working Americans out of the middle class.

These economic challenges have had profound consequences for individuals and families across the country, exacerbating income inequality, financial insecurity, and economic hardship.

Moreover, the policies associated with Reaganomics, such as deregulation, tax cuts for the wealthy, and reductions in social safety net programs, have further exacerbated these trends by disproportionately benefiting the wealthy and corporations at the expense of working-class Americans.

Despite our efforts to address the concerns of working-class Americans and promote policies aimed at improving economic well-being, Murphy, Kim, and Campos-Medina, chose to align themselves with the corrupt incumbent senator.

This decision has drawn criticism from some quarters, with observers questioning the commitment of these candidates to addressing the pressing economic challenges facing many Americans. As the debate over economic inequality and financial security continues to gain prominence in national discourse, the actions and priorities of political leaders come under increased scrutiny.

In light of the Post’s analysis and the ongoing economic struggles experienced by millions of Americans, calls for bold and comprehensive solutions to address income inequality and promote economic security are likely to grow louder. Whether political leaders heed these calls and take meaningful action to improve the lives of working-class families remains to be seen, but the need for change is undeniable.