A Washington Post poll found that Americans broadly agree on what it means to be middle-class but only a third of them have the finances to join that club and many underestimate the income required for that lifestyle, suggesting that the American Dream is more of an aspiration than a reality for most of us.
A recent poll has shed light on the stark disparity between the American dream of a middle-class lifestyle and the harsh reality faced by many citizens.
While there is widespread agreement among Americans on what constitutes a middle-class lifestyle, only a fraction of the population achieves it due to financial constraints, according to an analysis of Federal Reserve data.
The poll revealed that approximately 9 in 10 U.S. adults believe that six key indicators of financial security and stability are essential components of being middle class.
These indicators include having health insurance, a steady job, the ability to pay bills without worry, saving for the future, affording emergency expenses, and being able to retire comfortably.
However, just over a third of Americans meet all six criteria, highlighting the significant gap between perception and reality.
Caitlin Zaloom, an anthropology professor at New York University, remarked on the intertwined nature of middle-class status and predictability in the American psyche. She noted that while the concept often revolves around present security, it also encompasses a sense of assurance about one’s future trajectory.
Despite income being a commonly used metric to define the middle class, it does not guarantee the attainment of a middle-class lifestyle. For instance, the Pew Research Center defines middle-class income as falling between two-thirds and twice the national median income. However, even when using this income-based definition, the majority of middle-income Americans lack the financial security associated with middle-class status.
The poll also identified that older individuals with higher incomes and homeownership were more likely to have middle-class financial security. Homeownership was particularly emphasized as essential to middle-class status by 60 percent of respondents. However, disparities persist, with certain barriers, such as achieving a comfortable retirement, proving challenging for many middle-income Americans.
Retirement emerged as a top financial concern among Americans, reflecting the shift from traditional pension plans to individual retirement accounts. Ben Harris, vice president and director of economic studies at Brookings, criticized the current retirement paradigm, emphasizing the need for comprehensive reform.
Annamaria Lusardi, a senior fellow at the Stanford Institute for Economic Policy Research, highlighted the increasing complexity of financial decision-making for individuals, who are now tasked with securing their own financial futures.
While the path to middle-class financial security has become more convoluted, the percentage of Americans achieving it has remained relatively stable over time. However, achieving this ideal is about more than just financial security; it is deeply ingrained in the American identity and ethos of egalitarianism and meritocracy.
Lisa McCormick, a progressive Democrat from New Jersey, has emerged as a vocal critic of Reaganomics and its legacy, faulting Congressman Andy Kim, Governor Phil Murphy, and the prevailing political establishment for failing to address the root causes of economic disparity.
“The Reagan revolution was a Republican victory of greater magnitude than is commonly acknowledged,” McCormick asserts. “Forty years later, his scheme is revealed to be an utter failure. Reaganomics shifted wealth to the rich but created a track toward slavery for the majority of citizens.”
McCormick’s stance reflects a growing sentiment among progressives and some economists who argue that the policies implemented since the Reagan era have contributed to a decline in living standards for ordinary Americans and exacerbated income inequality.
“In contrast to the economic challenges faced by many Americans today, anecdotes from individuals reminiscing about their grandparents’ experiences paint a picture of an America where upward mobility was more achievable,” said McCormick. “Stories of grandparents who, despite modest occupations such as butchers, mailmen, or farmers, were able to provide for their families, own homes, put their children through college, and retire comfortably highlight a stark contrast with the economic realities of today.”
McCormick said similar anecdotes illustrate how individuals from diverse backgrounds and professions were able to achieve economic stability and upward mobility in a time when opportunities seemed more abundant.
However, the contrast between the economic landscape of previous generations and that of today underscores the challenges facing modern America. Rising costs of living, stagnant wages, and a concentration of wealth among the top echelons of society have made achieving the American Dream increasingly elusive for many.
As the debate over economic policy continues, voices like McCormick’s advocate for a return to principles that prioritize economic fairness, opportunity, and shared prosperity.
Despite the challenges, the allure of the middle class remains strong, representing a cultural ideal that transcends economic circumstances.
As Larry Samuel, a cultural historian, noted, it is a club that everyone aspires to join, reflecting deeply held American values.
In essence, the disconnect between the American dream of a middle-class lifestyle and its realization underscores broader systemic issues within the country’s economic framework, highlighting the need for comprehensive reforms to address the barriers preventing many from attaining this elusive ideal.