May 19, 2014

Is the Middle Class Hollowing Out?

Middle Class Debt Problems

Sadly, the answer is yes.  According to the Pew Research Center, the number of people who call themselves middle class has dropped nearly a fifth since 2008.  If we look at middle and/or upper-middle class, the percentage of Americans identifying in those categories has dropped 8 points.  According to General Social Survey, the number of Americans calling themselves middle or working class is the lowest in the survey’s 40 year history.Read more here about Middle class erosion

The American economy is built on the middle class. The middle class is eroding for at least two reasons.  Real wages are stagnant today and have been stagnant for way too long causing more middle class debt problems.  Real wages will not begin growing again until unemployment goes down.  Real unemployment will not slow until the USA really starts to grow economically again.

The other major reason the middle class is eroding is because it is carrying too much debt. If you are saddled with debt that is keeping you from the life you want, contact an attorney to see if they can help you negotiate for a significant reduction in the amounts your creditors claim due.

 

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