The golden age of the American middle class has come to an end, as the wealth of the middle class, which has grown during pandemic and from blockingwhen the state supported them American households who, in principle, could not consume and spend money. As stated in his respective report LuckThus, American households managed to increase their savings by another $2.5 trillion. USD between March 2020 and January 2022.

A middle-class American family net worth hit an all-time high of $393,300 in March 2022, according to new data from Bloomberg and UC Berkeley. That’s $120,000 more than the wealth of any middle-class American in 2017. when then-President Donald Trump took office. It was the golden age of the US middle class, which, however, began to decline even before the pandemic. Since March, however, the wealth of the American middle class has steadily declined. In mid-October, the wealth of the middle-class 40% of the American population fell by an average of 7%, according to Berkeley economists. This figure is about $27,000. This is a significant drop in the wealth of the middle class, the likes of which have not been seen since the 2008 global financial crisis.

In mid-October, the wealth of the middle-class 40% of the American population fell by an average of 7%.

This is the result of a perfect storm of economic uncertainty: rising interest rates, falling and volatile markets, recession forecasts everywhere, and the highest inflation in 40 years, meaning savings in bank accounts are no longer worth what they once were. And as the cost of living continues to rise, more and more households are diving deeper into their pandemic-related savings. What’s more, fewer Americans now earn as much as they spend. The number of Americans eligible to be considered financially secure dropped from 34% to 31% during the year for the first time in the five years the survey was conducted, according to data from the 2022 US Economic Outlook report. . And as the forecasts get thicker, a middle class struggling to keep up with the cost of living certainly doesn’t bode well for what kind of financial security American households can have.

The middle class is often seen as a symbol of the so-called “American Dream” because it is inextricably linked to a stable income and home ownership. That is, those that are now more difficult to maintain lately, as inflation accelerates and makes everything more expensive. And the well-being of households is seen as a harbinger of a country’s success, at least that argument is often used in the superpower’s election campaigns. But now, as middle-class incomes shrink and inequality rises, the dream that Americans grew up with is beginning to fade. The percentage of Americans who actually belong to the middle class is declining. It reached 61% of adults in 1971, according to a related Pew Research Center analysis, and had already dropped to 50% last year. And today there are clearly fewer Americans who consider themselves to be middle class than before the Great Depression. And although the wages of the upper or even the upper middle class increased in line with inflation, there was no corresponding rise in wages for the middle class.

According to a recent poll by financial firm Primerica, the majority of middle-class households (75 percent) believe that inflation is accelerating faster than any increase in their income. According to Bloomberg, the wealth of the middle class is still at a fairly high level. But American households are increasingly worried and unsure that their incomes will shrink even further and accumulated wealth will decrease. All this is enough to cultivate anxiety and pessimism.