Bidenflation Is Breaking America’s Middle Class

By Ai Inspire @ Adobe Stock

America’s Middle Class is hurting, that’s for sure. In the age of Bidenflation, many Americans are wondering just how much they need to earn to “feel” like they’re living the Middle-Class lifestyle. Jennifer Sor reports at Markets Insider:

It was a dream when he was younger — once he was making six figures, he assumed he’d be in financial nirvana, worry-free, off on vacation somewhere at least once a year, perhaps able to buy a home in the not-too-distant future.

“I was like, if I could make six figures, I’d have a nice life. I can save up the down payment on a home and start to begin my life,” Vincent, who preferred to only use his first name to protect his privacy.

He was surprised to find out that in Santa Barbara, a coastal California city where the cost of living is 65% higher than the national average, he’s barely able to save for anything, let alone buy a house, plan for kids, or hit other milestones of middle-class life.

“Bigger ticket items that our parents could have bought, like a home or car, that is, just to me, out of reach,” said Vincent, though he acknowledged his budget could go further in a city with a lower cost of living.

“I would have to save 10k for six or seven years straight and really sacrifice to put down on maybe the dumpiest thing I could find here.”

Vincent’s experience is emblematic of what has become of the middle-class American dream, with many earning well into six figures but feeling like they’re way behind the curve or that the economic chips are stacked against them.
Some of these concerns are real — see the wildly expensive US housing market — while others, experts say, may be a matter of perception versus reality, as the economy feels tough even as earnings are growing and employment is strong.

Vincent is among a growing group of middle-class Americans — most recently defined in 2022 by the Pew Research Center as households earning between $48,500 and $145,500 — who don’t feel they can’t afford to live a traditional middle-class life, replete with a home and a comfortable retirement.

According to Eoin Sheehan, a senior research analyst at Redfield & Wilton, inflation has caused many Americans to ignore the overall strength of the US economy.

Action Line: Is it any wonder Americans are feeling hard-pressed? Look at my chart of food inflation below. How can you feel comfortable about the future when you’re not sure how much your food will cost next year? It’s hard, but you need to save til it hurts. When you want help, I’m here. In the meantime, click here to subscribe to my free monthly Survive & Thrive letter.

Originally posted on Your Survival Guy.