New York, Jan 27 (Inditop.com) The American middle class dream is fast getting out of reach for more and more people as tough economic times take toll on their incomes and quality of life, says a study by the US Commerce Department.
More than 90 percent Americans consider themselves to be middle/working class, with only one percent calling themselves ‘upper class’ and seven percent ‘lower class’, according to a 2005 survey by the New York Times.
But according to the new report titled Middle Class in America, the Americans’ dream to reach the middle class is becoming increasingly difficult.
The report, prepared by the Commerce Department for Vice President Joe Biden’s Middle Class Task Force, compares current incomes and living costs of the middle class with those two decades ago.
“The American dream is attainable, but if we don’t attack the big problems today, whether it’s health insurance, education, childcare or housing, it will be harder for more and more American families to reach the middle class,” said Commerce Secretary Gary Locke.
Describing a typical American family as one which has economic stability, a home, cars for every members, funds for college education of children, health insurance and secure retirement, the report said, ” After rising in the 1990s, family incomes fell the next decade as expenses related to housing, education and healthcare rose much faster than the overall inflation rate.”
Since the 1990s, according to the report, housing prices have risen 56 percent, college tuitions 60 percent and health insurance premiums and out-of-pocket costs 155 percent.
“It is more difficult now than in the past for many people to achieve middle class status because prices for certain key goods – health care, college and housing – have gone up faster than income,” the report said.
“In addition, any number of uncontrollable events can make it hard to achieve middle class aspirations, including extra medical bills, payments for child care or elder care, or other demands on income. Families also face uncertainty about their future income, especially in an environment of high unemployment,” the report added.
