American Middle Class Analysis

The Burden of College on the American Middle Class The middle class is the “bedrock of the U.S. economy, driving consumer spending, which accounts for two-thirds of economic activity” (Edward 2014). The middle class is typically defined as those earning between “two-thirds to two times the nation’s median income”, which ranged from $41,900 to $125,600 for a three person household in 2014 (Luhby 2015).Not only can it be defined by how much money a person makes, but by “whether they hold the middle class values of work, family, and education” (Edward 2014). Middle class households tend to: own their own home, save for college, save from retirement, go on vacation, hang out with other middle class people, vote, and have a secure job. However,

The Great Recession was a period of general economic decline observed in world markets during the late 2000s, which left many middle class Americans worried about whether or not they could maintain their status as the middle class shrunk. The number of individuals who identified themselves as middle class dropped from 53% in 2003 to 44% in 2014. At the same time, those who identified themselves as below middle class rose from 25% to 40% (Edward 2014). The steady decline of the middle class is another indicator of economic polarization. “Not only are more Americans shifting into upper and lower classes, but they are moving into the higher range of upper class and the lower range of the lower class” (Luhby 2015). The rich is getting richer and the poor even poorer. “The upper class now controls 49% of the nation’s aggregate income, up from 29% in 1970, compared to the middle class’ 43%, down from 62% (Luhby 2015). This too comes as a result of there being fewer opportunities for people to place in the middle of the income

Due to the restructuring of the American economy, a bachelor’s degree has now become “an entry-level requirement for mid- and low-level jobs” in order to keep up with the steadily evolving demands (Christopher 2003). Despite these changing job demands, however, the class structure of the United States has remained rather static. Many of the students who earn a bachelor’s degree remain a part of the working class. This comes in part by the rising cost of college. The poor and middle class “are subject to a narrowing set of higher education options, coupled with greater debt and higher rates of academic failure than their more affluent peers” (Diffeciliantonio 2008). The burden of paying for higher education has shifted primarily to the middle class as well as the poor, leaving them unable to move up on the economic ladder. As the price of college continues to rise, the role of Pell Grants in college affordability has dwindled, emphasizing the change in national priorities. As stated by Richard Diffeciliantonio in America’s Damaging Lack of Investment in Higher Education, “Not long after the program was estabilished, in the 1970s, a Pell Grant covered more than 50 percent of a student’s direct costs at a public four year college and peaked almost 80 percent. Today, the average grant