Middle Class In America Losing The Battle In Hard Economic Times
July 23, 2008 Leave a comment
US Internet users commented on the fact now the evidence is out that the middle class in America is eroding away.
America’s middle class is growing increasingly squeezed by sagging incomes and soaring expenses, experts told Congress on Wednesday.
Adjusted for inflation, median household income dropped by $1,175 between 2000 and 2007, said Elizabeth Warren, professor at Harvard Law School, in written testimony before the Joint Economic Committee. At the same time, the average family is spending $4,655 more on basic expenses, such as gas, housing, food and health insurance. Gas alone costs $2,195 more for a family making the same commute in May 2008 as it did eight years earlier.
Families with children saw their child care costs soar. Those with children under age 5 spent an addition $1,508 a month, while after-school costs for older children rose $622.
To cover these soaring expenses, many people have had to turn to credit cards. Nearly 10% of total disposable income in the United States goes to paying off such debt, Warren said.