Shrinking

Middle Class

The latest numbers show that 57 percent of workers gained some purchasing power last year, but 43 percent still could not keep up with inflation. At the same time, the middle class has quietly thinned out. Back in 1971, about 61 percent of Americans were considered middle income. 

By 2023, that number had dropped to around 51 percent. 

It doesn’t sound dramatic until you realize what it means in everyday life. The middle ground that once felt stable is getting smaller, and more people are being pulled to the edges. For many, it feels harder to stay in place, even when they are doing everything right.

The Federal Reserve monetizes debt by purchasing Treasury bonds, from the open market. It pays for these securities by creating new money electronically, which increases the money supply. This process effectively finances the government's deficit by creating money instead of raising taxes.  When money creation is greater than improved efficiency in our economy rising prices – inflation – occurs.