Middle Class in America Grows, Not Shrinks

It's April 5th.

You're listening to U.S. News today, AI-powered coverage from across America.

I'm Cory with the story.

The middle-class in America has shrunk over the past four decades, but hold up.

It's not from folks falling behind.

A recent report from the American Enterprise Institute says it's actually because so many

families surged into upper-middle income levels.

By 2024, more households sat above the core middle-class line than below it, marking

a first in records.

A few research backs us up, showing upper-income households jump from 11% in 1971 to 19%

in 20.

23.

They define upper-income as more than twice the median, around $200,000 or so, for a family

of three today.

Incomes rose across the board after adjusting for inflation, but the top groups grew way

faster.

This shift hits everyday life hard, with economists pointing to college grads, white-collar

jobs, and more dual-income homes driving the climb.

Wages beat inflation over time, reshaping spending toward pricier goods and services.

Still, political fights rage on wages, taxes, and living costs.

Critics who say the middles hollowed out often use fixed median benchmarks that miss

the full picture, but median-family income still climbed over 50% when adjusted for inflation

and family size.

Bottom line, these trends paint a story of broad upward mobility, even with rising bills

for housing, school, and health care, pulling at budgets.