Market Commentary

The Middle Class

housing market

The middle class in recent years is not growing as it had from the mid 1990’s to the mid 2000’s. It is not a mystery as to why, it is because of rising costs in three areas; housing, healthcare and education. Also, global competition and technology are squeezing middle class careers.

It is not a U.S. phenomenon but worldwide. In the U.S. the middle class has shrunk from 64% of the population to 60% since the 1980’s. It has been a slow process so there is no real emergency, but it is a concern.

The problem is that no one is sure what to do about it. Education used to be the path to higher income, but the cost has outstripped its benefit in many careers. Just taking money from the rich and giving it to the poor solves nothing. It’s a difficult problem looking for a long-lasting solution.

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