Despite being historically seen as a symbol of the American Dream, middle-class Americans face financial challenges and instability. According to a study by the Pew Research Center, the middle class has been shrinking steadily since the 1970s. Although the proportion of the middle class in the United States remained unchanged at 59 percent from 1985 to 2016, the middle class is now labeled as “squeezed” due to the pressure to maintain its lifestyle. The cost of living for the middle class has become more expensive and uncertain, increasingly beyond the reach of younger generations. Many middle-class families live in precarity, insecurity, and debt, and the definition of middle class is hotly debated.
Wage stagnation in the United States has been a problem since the early 1970s, but became more pronounced in 1979. While wages have risen, they have not kept pace with productivity growth and, when adjusted for inflation, real wages have barely risen. This has had a major impact on the middle class, creating inequality, poverty and division. The COVID-19 pandemic has led to higher wages across industries, but it’s not sure if that’s the new reality. Automation has been a major cause of wage stagnation, especially in manufacturing.
Despite high living standards and real wages, many Americans do not feel part of the nation’s prosperity. Legislative changes such as limiting non-compete clauses and passing the PRO Act to make it easier for workers to organize could help address wage stagnation. The rise of remote work and the gig economy may also provide opportunities for higher-paying jobs.
The documentary highlights the mounting debt burden many Americans face, with levels rising significantly in recent years. While government support during the pandemic has helped ease some of the debt burden, rising interest rates and the end of those supports are reigniting concerns about household debt.
Low-income households and households of color are also disproportionately affected by high debt burdens due to structural and historical discrimination. Policies need to be updated to reduce wage garnishments and support households struggling with debt. Plus, programs like the child tax credit and expanded Medicaid could help reduce the debt burden. The film also discusses how money-related stress can affect mental health and overall well-being.
