A sobering report from the New York Times has revealed that the American middle class, long considered the engine of the country's post-war economic success, can no longer claim to be the richest in the world. While the wealthiest Americans continue to outpace global peers, lower- and middle-income citizens have seen considerably smaller pay rises over the past three decades compared to counterparts in other advanced nations. Thirty-five years ago, America's poorest citizens were better off than their European peers; now they lag behind.
The findings are yet another wake-up call about America's ongoing economic malaise. Polls show that 60% of Americans believe the country is on the wrong track, with only 25% satisfied with the current direction. Just 44% still identify as middle class, while 40% now consider themselves lower class – a 15-point increase since 2008. Among young people, the numbers are even more stark: those placing themselves in the lowest tier have doubled in the past six years.
Although a majority of Americans still cling to the American Dream – the ideal that hard work leads to success – more and more feel that social advancement is out of reach. A particularly disquieting trend is that those in their 20s and 30s are now less likely to have a high school diploma than those aged 55 to 64. This decline has occurred despite America's vast resources, dynamic population, stable political system and technological innovation.
The erosion of the middle class, the ostentatious wealth of the top 1%, and the economic anxiety of the growing poor have happened in plain sight. It is the direct result of a political system that has, for over four decades, abdicated its responsibilities and tilted economic scales toward the affluent and well-connected. The idea that government should create jobs, grow the economy, build a social safety net, or prioritise the vulnerable has become outdated.
After the Second World War, America experienced unprecedented prosperity. Jobs were plentiful and well-paying, with generous benefits. New consumer goods became widely available, and homeownership soared. Crucially, those at the bottom shared in the bounty. While life was never as idyllic as nostalgia suggests, especially for minorities and women, Americans enjoyed an economic security that current generations can only dream of. The political system's indifference has now led to a slow-motion economic collapse for many.
