Here's How Much the Definition of Middle Class Changed Since Biden's First Day in 2021
The definition of America's middle class used to be a lot clearer than it is today — thanks to the changes of inflation and cost of living. According to data from Pew Research Center, the country's middle class has shrunk considerably over the past few decades. Back in 1971, approximately 61% of Americans were considered middle class; by 2023, that number had fallen to just 51%.
But the data only shows the percentage of middle-class households remaining. What it doesn't indicate is what the middle-class lifestyle actually looks like today or how much you need to still make a comfortable living in the U.S.
Explore More:
Check Out:
'Since 2021, the definition of middle class in the U.S. hasn't changed that much on paper, but the reality of these changes feels much different for a lot of people,' said Kristy Kim, personal finance expert and CEO at TomoCredit.
According to Pew Research Center, middle-class households are those who earn between two-thirds and double the U.S. median household income — adjusted for household size and region.
Discover Next:
The latest U.S. Census data found that the median household income in 2023 was $80,610. Using this figure and ignoring household size and region, you'd be considered 'middle class' if you earn between $53,740 and $161,220.
The U.S. median household income in 2021, meanwhile, was $70,784. This means households earning between $47,189 and $141,568 would have been considered 'middle class' around the time Biden became president.
So, those are the numbers. But the actual cost of living has risen significantly in the past four years or so.
Take groceries as an example. Food prices rose by 3.9% annually right before Biden entered office. But then in March 2024, the latest data available by the BLS, prices had risen by over 25%. This means $100 worth of groceries before the presidential election would now cost a little more than $125.
Housing costs have also skyrocketed. According to the Federal Reserve's latest data, the median sales price of homes sold in the U.S. was $419,200 in Q4 2024. In Q1 2021, the median sales price was $355,000 — $64,200 less.
'What used to feel like a comfortable income now barely covers the basics in many parts of the country,' Kim said. 'Rising costs of housing, healthcare and everyday living essentials have stretched budgets super thin, making it harder for families to maintain the lifestyle that used to define the middle class.'
Exacerbating the issue — and further defining these more recent changes to the middle class — is the fact that wages simply haven't kept up with rising costs.
'While wages have gone up, inflation has steadily outpaced those gains, meaning even people earning well into six figures in certain cities feel like they're just scraping by,' Kim explained. 'The middle class isn't necessarily shrinking — it's just feeling a lot tighter.'
According to the Social Security Administration's latest data, the national average wage index was $66,622 in 2023. Back in 2021, it was $60,575. That's only a $6,047 difference.
Being considered 'middle class' isn't just about falling within certain income thresholds. Where you live has a major impact on how much money you need to live comfortably.
For example, $100,000 will go a lot further in a small town than it will in a metropolitan area. According to Kim, middle-class households should also be able to pay for the following without majorly struggling:
Housing (ideally with a manageable or no mortgage)
Savings for emergencies
Retirement savings
Discretionary spending like dining out or traveling
Other things that should be covered include healthcare and education.
Though the numbers have changed since Biden's first day in office in 2021, the definition itself remains much the same.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Here's How Much the Definition of Middle Class Changed Since Biden's First Day in 2021
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
43 minutes ago
- Yahoo
1 in 4 job seekers in Hawaiʻi lie to gain employment: New report
HONOLULU (KHON2) — A new report has found that one in four job seekers admits to lying on their resume, in their cover letter and during the interview process. The lies range from inflated skills to fabricated experience. Some even stretch the truth about who they are, including disability status and ethnicity, to try to get hired. Hawaiʻi's highest paid college majors, jobs for recent graduates For some, it works. Four out of 10 say they got a job by being dishonest, and two-thirds believe the lie helped them succeed. But there is a cost. Once a lie is uncovered, trust erodes, and that's not something that's easy to rebuild. 'Lying during the hiring process can create long-term trust issues and damage one's professional reputation,' said Stacie Haller, an advisor on the survey. 'Once a lie is uncovered, it is not easily forgotten, and trust is difficult to rebuild.' Hawaiʻi's highest paying careers, professions Lying is more common than many people think. The survey found that 44% of Americans say they've lied in the hiring process. That includes 24% on resumes, 19% in interviews and 6% on cover letters. The most frequent lies are about years of experience, skills and job responsibilities. Here's what job seekers in Hawaiʻi need to know now: 8 takeaways from Hawaiʻi's top ranking for school lunches Amongst job seekers, around 24% have lied on their resume, which was identified by the study as making it the most common place for dishonesty. The most frequent resume lies the study found include: Years of experience (38%). Skills and abilities (34%). Lengths of positions held (32%).The survey found that Millennials are the most likely to lie on their resumes, with 29% reporting that they had lied in order to gain employment. Meanwhile, 20% of Gen Z'ers were found to have lied along with 27% of Gen Xers and 13% of Baby Boomers. Additionally, men were found to be more likely than women using lies on their resumes at a rate of 30% v. 20%. Lying in interviews is also widespread. The report found that 19% of job seekers admitted to dishonesty during an interview. The most common interview lies include: Skills and abilities (41%). Responsibilities at previous jobs (32%). Years of experience (31%). Once again, Millennials topped the lying pile with 24% of them saying they lie during the interview process. Baby Boomers were the least likely at 8%; and again, more men (23%) than women (16%) lie at the interview stage. Cover letters were found to have fewer lies with 6% of job seekers saying they have lied in their cover letters. And when they did, they most often misrepresented: Skills and abilities (45%). Responsibilities at previous jobs (38%). Years of experience (37%). You can click to read the full report. 'Dishonesty harms a worker's reputation, even if the consequences aren't immediately apparent,' explained Haller. 'If a candidate doesn't meet all the requirements for a specific position, honesty is still always the best approach. They should highlight their genuine strengths, the skills they bring, and why they are uniquely suited to succeed in the role.' Haller went on to explain further. Get news on the go with KHON 2GO, KHON's morning podcast, every morning at 8 'By presenting their qualifications truthfully, they demonstrate integrity and professionalism, qualities often as important as technical skills,' concluded Haller. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
an hour ago
- The Hill
Trump clears path for Nippon Steel investment in US Steel, so long as it fits the government's terms
WASHINGTON (AP) — President Donald Trump on Friday signed an executive order paving the way for a Nippon Steel investment in U.S. Steel, so long as the Japanese company complies with a 'national security agreement' submitted by the federal government. Trump's order didn't detail the terms of the national security agreement. But U.S. Steel and Nippon Steel said in a joint statement that the agreement stipulates that approximately $11 billion in new investments will be made by 2028 and includes giving the U.S. government a 'golden share' — essentially veto power to ensure the country's national security interests are protected. 'We thank President Trump and his Administration for their bold leadership and strong support for our historic partnership,' the two companies said. 'This partnership will bring a massive investment that will support our communities and families for generations to come. We look forward to putting our commitments into action to make American steelmaking and manufacturing great again.' The companies have completed a U.S. Department of Justice review and received all necessary regulatory approvals, the statement said. 'The partnership is expected to be finalized promptly,' the statement said. The companies offered few details on how the golden share would work and what investments would be made. Trump said Thursday that he would as president have 'total control' of what U.S. Steel did as part of the investment. Trump said then that the deal would preserve '51% ownership by Americans.' The Japan-based steelmaker had been offering nearly $15 billion to purchase the Pittsburgh-based U.S. Steel in a merger that had been delayed on national security concerns starting during Joe Biden's presidency. Trump opposed the purchase while campaigning for the White House, yet he expressed optimism in working out an arrangement once in office. 'We have a golden share, which I control,' said Trump, although it was unclear what he meant by suggesting that the federal government would determine what U.S. Steel does as a company. Trump added that he was 'a little concerned' about what presidents other than him would do with their golden share, 'but that gives you total control.' Still, Nippon Steel has never said it was backing off its bid to buy and control U.S. Steel as a wholly owned subsidiary. The proposed merger had been under review by the Committee on Foreign Investment in the United States, or CFIUS, during the Trump and Biden administrations. The order signed Friday by Trump said the CFIUS review provided 'credible evidence' that Nippon Steel 'might take action that threatens to impair the national security of the United States,' but such risks might be 'adequately mitigated' by approving the proposed national security agreement. The order doesn't detail the perceived national security risk and only provides a timeline for the national security agreement. The White House declined to provide details on the terms of the agreement. The order said the draft agreement was submitted to U.S. Steel and Nippon Steel on Friday. The two companies must successfully execute the agreement as decided by the Treasury Department and other federal agencies that are part CFIUS by the closing date of the transaction. Trump reserves the authority to issue further actions regarding the investment as part of the order he signed on Friday. ___ Associated Press writer Marc Levy in Harrisburg, Pa., contributed to this report.
Yahoo
an hour ago
- Yahoo
US scrambles to bring back VOA's Persian service amid Iran-Israel conflict
Employees of Voice of America's Persian-language service who were sidelined by the Trump administration have been hastily called back to duty as Iran and Israel exchange missile strikes in a high-stakes Middle East conflict. The U.S. Agency for Global Media told employees placed on administrative leave to immediately return to their roles providing counter-programming to Iranian state media as the conflict between the two nations escalated Friday, according to an email seen by POLITICO and three people familiar with the situation. 'Effective immediately, you are recalled from administrative leave,' said the email from USAGM's human resources department. 'You are expected to report to your duty station immediately.' There are 75 full time employees within VOA's Persian wing — the language predominantly spoken in Iran — and it's believed most, if not all, have now been brought back after being put on administrative leave for three months. VOA's Persian service had been shut down as a part of President Donald Trump's March 15 executive order dismantling U.S.-backed global media, which included VOA, among other outlets. Since, the embattled network has been rattled with court orders — and discussions of company-wide reductions-in-force. In the last several weeks, RIFs have begun going out to employees in small doses. Patsy Widakuswara, one of the lead plaintiffs in VOA's lawsuit against the Trump administration, said this move is a perfect example of why the entirety of VOA should be brought back. 'After months off the air, we've already lost a lot of audience and credibility,' said Widakuswara, the VOA White House bureau chief. 'They should bring us all back so we can respond to breaking news in all parts of the world.' The abrupt decision to recall employees of the Persian service occurs as the conflict appears to be escalating following the overnight strike on Iran directed by Israeli Prime Minister Benjamin Netanyahu and the Iranian response. VOA would typically heavily rely on contractors for this coverage — but last month the administration terminated a large swath of them. 'It just shows how idiotic they are, consistent with this firing and rehiring pattern that has cost Americans who knows how many millions of dollars,' one VOA employee on administrative leave, said on condition of anonymity to speak candidly. 'This is the real fraud, waste and abuse.'
