More Americans are moving into the upper middle class than ever – but some STILL don’t feel wealthy
The United States’ middle class is wealthier than ever, but those in that category still struggle amid an ongoing cost-of-living crisis.
In a recent study, the American Enterprise Institute revealed that more than 30 percent of Americans have made their way into the upper middle class.
The research published by Stephen Rose and Scott Winship defined the upper middle class as a family of three earning $133,000 to $400,000 per year, reported the Wall Street Journal.
The drastic shift in income distribution, Winship said, has to do with wages increasing more quickly than prices in the past several decades.
But even households whose annual incomes sit comfortably within that range have difficulty visualizing themselves in a high tax bracket.
They see themselves as comfortable, not rich.
‘I view myself as an average Joe. I don’t have to have a fancy car. I don’t have to have the greatest TV,’ 58-year-old Randy Shilling told the Journal. ‘But when I want something, I go get it.’
Shilling graduated from Texas A&M with a degree in petroleum engineering. He owns a home in Humble, Texas and has a retirement savings of more than $3 million. He and his wife, Nanci, earn $220,000 per year.
The United States’ upper middle class is increasing, according to recent reports. More than 30 percent of Americans have reportedly crossed the threshold
Randy Shilling and his wife Nanci Shilling earn $220,000 per year to provide for themselves and their son, Blake
Shilling has said he’s doing better than his parents did before him, but worries it isn’t enough for his 23-year-old son’s generation due to the cost-of-living crisis.
‘I think they’re going to struggle,’ he said.
Inflation has led many high-earning families like Shilling’s to feel like their impressive incomes are still inadequate. Housing crises and rising costs have made it difficult for many Americans to own a home.
Americans in the Shillings’ position still may not be able to afford home ownership or college for their children.
The median price for an existing home in the US is almost $400,000, reported Bank Rate. The average cost of tuition is $38,000 per year.
Laura Shields, 46, told the Wall Street Journal that she only began feeling comfortable with her finances in the past decade.
She and her husband bring in approximately $240,000 per year.
But with their eldest son off to college in just a few years, the couple is worried loans will be required to pay for his education.
‘I try not to think about it,’ Shields told the Journal.
While demographics of the expanding upper middle class vary, a study conducted by Rose revealed that Americans with a college education have a high likelihood of being included.
Join the discussion
Is rising wealth really improving life for families, or is the cost-of-living crisis erasing the gains?
Research published by Stephen Rose (pictured) with the Urban Institute suggested that people with college educations are more likly to breaking into the upper class
According to his research with the Urban Institute, 55 percent of people with a bachelor’s degree and 68 percent of people with a graduate degree are included.
As the upper middle class welcomes new member every day, research showed that the lower-middle class is shrinking, creating a larger gap between the poor and the wealthy.
Less than 30 percent of Americans are considered lower middle class by Rose and Winship’s standards.
More than 40 years ago, more than 50 percent of Americans were within that threshold.
In 2024, only 19 percent of Americans were considered ‘poor or near poor,’ compared to 30 percent in 1979.
Rose and Winship defined ‘poor or near poor’ as families of three that earned $40,000 or less annually.
Scott Winship co-authored the recent studied which suggested that more than 30 percent of Americans are within the upper middle class
According to World Population Review, livable wages for most households across the US sit above at least $50,000 per year.
Studies suggest that nine in ten Americans feel crushed by a ‘full-blown cost of living crisis,’ per Study Finds.
Ludwig Institute for Shared Economic Prosperity chairman Gene Ludwig told CBS last year that the decline of the true middle class and the climbing cost of living are ‘really dangerous.’
‘It’s the kind of thing that leads to social unrest, and it’s not fair,’ he said. ‘The American dream is not that it’s given to you — it’s that if you work hard, you have a chance to get ahead and achieve the things in life that you want to achieve.’
