Why Is The American Middle Class Shrinking?

The video discusses the decline of the middle class in the US, highlighting that from 1971 to 2016, the percentage of adults in middle-income households dropped from 61% to 52%. Initially, those leaving the middle class moved to the upper class, but post-2000, more shifted to lower income brackets. Factors like wage disparity, rising costs of healthcare, childcare, housing, and education, and increasing debt contribute to this trend. Solutions proposed include raising the minimum wage, offering paid leave, and providing tax benefits.

What trend was observed in the movement of people from the middle class after the year 2000?

• There was no significant movement.

• The middle class expanded.

• More people moved to the lower income group.

• More people moved to the upper class.

Which factor has contributed to the decline of the middle class by affecting their earnings?

• Decreased job opportunities

• Wage growth disparities

• Lower education levels

• Increased leisure time

Which of the following costs have risen faster than the median income in the US?

• Entertainment

• Healthcare and education

• Luxury goods

• Travel expenses

What is the current state of debt among Americans as mentioned in the video?

• It has decreased significantly.

• It has increased to over $13.8 trillion.

• It has remained stable.

• It is no longer a concern.

Which policy suggestion is mentioned as a way to support the middle class?

• Decreasing healthcare access

• Reducing taxes for the wealthy

• Increasing the minimum wage

• Eliminating public education