Vanishing middle class: How skyrocketing costs and rampant speculation are pushing American families to the financial brink

American dream has felt more and more out of reach for millions of families in the past few decades, as per a report. Higher living expenses, stagnant incomes, and an economy that rewards financial speculation over actual production are impacting the very heart of American society, the middle class, reported Big Easy magazine.

The Cost of Living: Then vs. Now

Going back in time to the 1960s, the median price of a home was only $12,700, about $125,000 in today's dollars adjusted for inflation, according to the report. A single income was sufficient to take care of a family, providing for housing, healthcare, and education comfortably, as per the report. Coming back to the present, the median home price has skyrocketed to more than $400,000, reported Big Easy Magazine. Nowadays, even double-income families struggle to make ends meet, with housing, childcare, education, and healthcare expenses that are still on the rise, as per the report.

Even the dollar’s purchasing power has plummeted, according to Big East Magazine. Although American workers have become more productive over the past 50 years, their paychecks have remained mostly stagnant when adjusted for inflation, reported Big Easy Magazine.

A Shrinking Middle Class

In 1971, 61% of US households fit into the middle-class category, as per the magazine report. That number has now fallen to slightly more than 50%, and the percentage of wealth they possess has fallen even lower, reported Big Easy Magazine. While the middle class is barely holding on, the richest 1% have watched their fortunes balloon, as per the report.

This widening disparity is due to a system that increasingly favours wealth concentration over labour, reported Big Easy Magazine. Tax policies,