New Study Shows Middle Class in Financial Turmoil

The following is an excerpt from an article appearing in the Center for American Progress:

America’s middle class families are caught in an unprecedented crunch. Despite a growing economy, their incomes have remained stagnant or flat. And because prices for big ticket items such as housing and health care have gone through the roof, families are not able to put away a rainy day fund. Instead, middle class families have had to take on more debt to maintain their basic needs and, as a consequence, have been unable to save. Taken together, these trends have left families increasingly vulnerable to the impact of an economic emergency, such as unemployment or a medical emergency.

Read the entire article from Center for American Progress, or read the complete report in PDF Middle Class in Turmoil

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On the other hand, in an appearance on This Week with George Stephanopoulos, Vice President Dick Cheney touts the success of the Bush administration policies, claiming the economy is "Going like gangbusters". Read the article from ABC News. One has to wonder who is telling the truth? Or does one?

I think the middle class can judge for themselves. While the economy is stronger than it has been in recent years, it is definitely showing signs of a slowdown, and the strength we have seen has, due to Bush administration policy, been directed toward benefiting only the very, very wealthy, and not the middle classes. When in history have dual incomes and dangerously excessive leveraging been necessary in order to live a non-excessive, middle class life- style (raise kids in a decent neighborhood with decent schools, take a two week vacation once a year, and drive a late model car)? It is no wonder that the vast majority of middle income Americans feel left behind when it comes to the prosperity recently enjoyed by our wealthiest citizens. They have been.