The middle-class segment in America, often defined by an annual income range of Rs 28 lakh to Rs 86 lakh, is increasingly finding it difficult to meet household expenses. This financial strain can be attributed to a combination of factors, including inflation, low income growth, and insecure job conditions.
Middle-Class Income Struggles
Inflation. has been a persistent issue affecting the purchasing power of middle-class families. Over the years, the cost of essential goods and services, such as housing, healthcare, and education, has risen significantly.
As a result, even families with seemingly substantial incomes find that their money does not stretch as far as it once did. This situation forces many to make tough choices between saving for the future and managing present-day expenses.
Low income growth. is another critical factor. While the nominal incomes of middle-class families have increased over the years, this growth has not kept pace with inflation. Between 1979 and 2018, the income of middle-class families in America grew by only 23.1 percent.
This modest increase is insufficient to cover the rising costs of living, especially when compared to the wealth accumulation seen in higher income brackets. The disparity between income growth and cost increases puts additional financial pressure on these households.
Insecure job conditions. further exacerbate the financial difficulties faced by the middle class. The modern economy, with its increasing reliance on gig and contract work, has introduced a level of uncertainty that was less prevalent in previous decades.
Many middle-class workers now face precarious employment situations, with less job security and fewer benefits. This instability can lead to periods of unemployment or underemployment, further straining household finances.
In conclusion
Despite having an income range that may appear comfortable on paper, many middle-class families in America struggle to keep up with their expenses. The combined impact of inflation, low income growth, and insecure job conditions makes it challenging for these households to maintain their standard of living and plan for the future.
Addressing these issues requires a comprehensive approach, including policies that promote wage growth, ensure job security, and manage inflation, to better support the financial well-being of the middle class.
