Amid record profits & stock market highs, most Americans can’t afford a middle-class lifestyle

As corporate profits soar to record-breaking heights and the stock market reaches historic new peaks, a stark reality persists for many Americans: the inability to afford the essentials of a middle-class lifestyle.

Despite robust economic indicators, a significant portion of the population remains excluded from the prosperity enjoyed by the corporate elite and Wall Street investors.

According to the Pew Research Center, a commonly used definition sets a middle-class income between two-thirds and twice the national median income, equating to $67,819 to $203,458 for a family of four in 2022.

However, most Americans consider the lower end of that range, between $75,000 and $100,000, to be middle class, and the fact is that even such income levels leave families unable to afford the things associated with a middle-class lifestyle.

Reliable economic data reveals that even when considering middle-income Americans within the expansive range, the majority lack the stability traditionally associated with middle-class status.

Factors such as stagnant wages, rising living costs, and limited access to affordable housing contribute to the struggles faced by middle-income Americans.

Despite the overall economic growth, many find themselves grappling with the challenge of securing a comfortable retirement, with only about half of middle-income individuals over the age of 35 feeling they are on track to achieve this goal.

While corporate profits reach unprecedented levels and the stock market continues to climb, the financial security associated with the middle class eludes many.

Inflation, though decreasing, remains elevated, driving up prices across various sectors. Corporations, wielding significant market power, have exploited this environment to maintain high profit margins and implement price hikes on essential goods. Companies like PepsiCo and Coca-Cola have faced scrutiny for raising prices despite reporting substantial profits, exacerbating the financial strain on consumers.

The concentration of market power among a few major corporations extends beyond the beverage industry, affecting sectors such as meat processing, where a handful of companies control the majority of the market, allowing them to coordinate price increases with little competition.

Efforts to address these challenges include antitrust enforcement and legislative measures aimed at curbing corporate price gouging, but progress is slow.

U.S. Representative Jan Schakowsky and U.S. Senator Elizabeth Warren have again introduced bills that seek to protect consumers from excessive price increases and empower regulatory agencies to take action against corporate misconduct.

Observers say the legislation has virtually no chance of getting to the President’s desk due to partisan gridlock and opposition from wealthy campaign contributors.

While the path to middle-class financial security has become increasingly complex, the aspiration to achieve this status remains deeply ingrained in the American identity.

Many families, regardless of their race, have a hard time affording food. However, it happens more frequently to women and families of color because of discrimination. Black and Latino children are twice as likely to face hunger. In 2022, 33% of households headed by single moms experienced food insecurity.

Families with children are more likely to face hunger. According to the USDA, one in every five children is unsure where they will get their next meal.

However, as economic disparities persist and the gap between the corporate elite and the middle class widens, the pursuit of the American Dream faces significant challenges, leaving many to question the accessibility of prosperity in today’s society.