Super Core negative. Service deflation!
PCE 2.1% YoY.. majority is shelter which is declining.
Real FFR 2.23% is insanity!!
Commodities ex gold signalling deflation.
Powell and his cheerleaders are NOT Data Dependent.
Either incompetence or political bias.
Pick one. pic.twitter.com/uD5NcBvBHI
— James E. Thorne (@DrJStrategy) May 31, 2025
Something seismic is happening in American society. The middle class is vanishing before our eyes.
This isn't just a statistic. It's a fundamental restructuring of America. Here's what's happening and why it matters: pic.twitter.com/RqVrwXu1zO
— Ask Perplexity (@AskPerplexity) May 31, 2025
The American middle class is shrinking at an alarming rate, and the consequences are reshaping the nation’s economic landscape. This isn’t just a statistical shift—it’s a fundamental restructuring of American society.
The numbers paint a grim picture. In 1971, 61 percent of U.S. households were considered middle class. By 2021, that number had dropped to 50 percent. The decline is accelerating, with rising costs and stagnant wages pushing more families out of the middle-income bracket. The upper-income tier has expanded, now encompassing 21 percent of households, while the lower-income tier has grown to 29 percent.
The cost of living is crushing families. Housing prices have skyrocketed, making homeownership unattainable for many. In the 1960s, the median home price was $12,700, equivalent to $125,000 in today’s dollars. Now, the median price has surged past $400,000, forcing even dual-income households to struggle. Rent prices have followed suit, with major cities seeing increases of 30 percent or more in just five years.
Wages have failed to keep pace. Despite productivity gains, inflation-adjusted earnings have remained stagnant for decades. The purchasing power of the dollar has plummeted, leaving families unable to afford basic necessities. The middle class, once the backbone of the American economy, is being squeezed out by financial speculation and corporate consolidation.
Sources:
https://www.moneydigest.com/1785062/why-middle-class-vanishing/