The Middle Class Bottoms Out?

A study from the Pew Foundation reveals that most middle-class Americans believe they are not “moving forward in life.” The article notes: “For decades, middle-income Americans had been making absolute progress while enduring relative decline. But since 1999, they have not made economic gains.” Part of the reason for “bad times” is the borrow/spend habit that middle class Americans have developed. Again, “For the past two decades middle-income Americans have been spending more and borrowing more. Housing has been the key driver of both trends.” However, despite current feelings about personal progress, many of “the American middle class are optimistic about the future. Most are confident that their quality of life in five years will be better than it is now. And, gazing farther ahead, most expect their children to do better in life than they themselves have done.”