Trapped in the Middle

Are you better off than you were eight years ago? For a growing number of middle-class Americans, the answer is “No.”

Here and elsewhere, middle-class earnings aren’t keeping up with the cost of living. Rising gasoline and food prices, health bills, child-care and education costs are leaving less to set aside for retirement. With the housing market in turmoil, even the asset many had come to count on — the value of their homes — is threatened.

It isn’t just a reflection of the current economic slowdown and rise in commodity prices: Middle-class incomes have been stagnant for several years. The well-heeled keep doing better, with the wealthiest 1% of U.S. families garnering the largest share of income since 1929.

“This is a squeezing-down cycle, and people are trying to hang on,” says Randy Riggs, pastor at First Presbyterian Church in this city in the heart of Pennsylvania Dutch Country. “Five years ago, I had these visions of what the church could do and hoped to raise funds to do so. I can’t be a dreamer at the moment.” Mr. Riggs says he recently tabled a project to renovate the church’s chapel because he sensed he couldn’t raise enough money.

Read it all from the front page of today’s Wall Street Journal.

Posted in * Economics, Politics, Economy

4 comments on “Trapped in the Middle

  1. libraryjim says:

    [i]Are you better off than you were eight years ago? For a growing number of middle-class Americans, the answer is “No.”[/i]

    Yes, I am. And I’m middle Class. Under Clintion, I had to pay taxes each year due to the high capital gains rate with some inherited stocks. Under Bush’s tax cuts I get a refund.

    so

    Go, W!

    Make the tax cuts permanent!

  2. CharlesB says:

    I am personally far better off than 8 years ago, but, alas, 8 years older as well . . .

  3. libraryjim says:

    Yeah, unforutnately, there IS that! lol 🙂

  4. PHW says:

    Earnings are slightly down and expenses are way up for our family of 4. I don’t blame the economy per se, as we have had our share of setbacks that are a bit unusual (layoffs & health problems.)