(The Economic Collapse Blog)—The middle class in the United States has been steadily shrinking, and the gap between the ultra-wealthy and the rest of us has grown to absurd proportions. But it wasn’t always this way. When I was growing up in the 1980s, it seemed like almost everyone was middle class. Of course there were wealthy people and poor people in the 1980s too, but the vast majority of the population was comfortably somewhere in the middle. Sadly, things have changed so much since that time. Today, most of the people that I know are struggling. According to a report that was just released, in all 50 states it now takes an income of more than $100,000 in order for a family of four to live “the American Dream”…
A new report from GOBankingRates used that framework to analyze how much money a family of two adults and two children would need in each state to own a home, a car and a pet. The report tallied estimated annual essential expenses for such a family and then doubled that figure.
Using that framework, GoBankingRates found that all 50 states require more than a $100,000 annual income, according to the report, with 38 states needing more than $140,000.
Is your family bringing in more than $100,000 a year? If not, “the American Dream” is not for you. Sorry.
Our leaders purposely pursued policies that they knew would cause inflation, and when new money enters the system most of it tends to flow into the hands of those at the top of the economic food chain.
So the ultra-wealthy have been doing very well in this economic environment, but high inflation is absolutely eviscerating all the rest of us.
At this point, it takes the average U.S. household an extra $1,069 per month just to purchase the same goods and services that it did three years ago…
Inflation is once again gaining steam, forcing the average American to shell out a lot more money for everyday necessities.
The typical U.S. household needed to pay $227 more a month in March to purchase the same goods and services it did one year ago because of still-high inflation, according to calculations from Moody’s Analytics chief economist Mark Zandi shared with FOX Business.
Americans are paying on average $784 more each month compared with the same time two years ago and $1,069 more compared with three years ago, before the inflation crisis began.
What we are witnessing is the collapse of the middle class.
The cost of living has been rising faster than incomes have been, and that is putting an extraordinary amount of financial stress on U.S. households.
For example, the cost of auto insurance has risen more than 22 percent over the past 12 months…
The cost of auto insurance rose 2.6% in March, bringing the total annual gain to 22.2% — the fastest yearly rate on record. When compared with the beginning of 2021, before the inflation crisis began, motor vehicle insurance is more than 50% more expensive.
Housing costs have been increasing at an even faster pace. If you can believe it, the average monthly mortgage payment on a newly purchased home has risen by 96 percent in just four years…
The real estate firm Zillow reports that since January 2020, the monthly mortgage payment on a typical U.S. home has nearly doubled. It’s up 96% in just four years.
According to Zillow, a typical buyer will now pay nearly $2,200 a month, with a 10% down payment. Meaning, homeownership now costs well above the 30% of median income that was once thought to equate to “affordable” housing cost in America.
Home ownership is now out of reach for a huge chunk of the population.
Needless to say, that isn’t a good thing. Why aren’t the American people more upset about all of this?
In a desperate attempt to maintain a middle class standard of living, many Americans are piling up enormous amounts of debt.
According to CNBC, some economists believe “that debt growth has become a substitution for income growth”…
Economists have suggested that debt growth has become a substitution for income growth. Student loan debt reached an all-time high of $1.77 trillion in the first quarter of 2023 and Americans collectively owe $1.13 trillion on their credit cards as of the fourth quarter of 2023. This debt can have a ripple effect, especially when entire generations are starting their adulthoods with thousands of dollars in debt.
In many cases, people that have greatly overextended themselves now find themselves absolutely drowning in debt.
One 28-year-old woman that purchased a Chevy Tahoe three years ago still owed $74,000 to GM Financial and was eventually forced to sell the vehicle…
Three years ago, 28-year-old Blaisey Arnold entered a local auto dealership and came away with the keys to an $84,000 Chevy Tahoe.
But this month, the wedding photographer and mother shared a video to TikTok describing how she was forced to sell her dream car.
Despite paying $1,400 a month in payments totaling more than $50,000, she still owes a balance of $74,000 to her lender – GM Financial.
Can you believe that? Of course she is far from alone.
At this point, millions upon millions of Americans have gotten into trouble with debt, and credit card delinquency rates have risen to unprecedented levels…
Delinquency rates among American credit card holders are at an all-time high, while at the same time a record number of “active accounts” have “a balance of over $2,000,” according to a Federal Reserve Bank of Philadelphia report.
If Americans really understood what our politicians in Washington and the “experts” at the Federal Reserve were doing to us, there would be massive protests in the streets right now.
These days, a lot of Americans that had actually retired are now heading back to work due to the rapidly rising cost of living. Hope Murray is one of those people…
Hope Murray retired in 2013 after a 50-year career that ranged from game show producer to Hollywood party planner to casino executive.
She settled into a life of golf, game nights and pickleball in her San Diego community, her daughter living nearby.
Then things got more expensive. Gas was nearly $5 a gallon, medication costs were adding up, the grocery bill was increasing.
Can you imagine going back to work when you are 80 years old?
That is what she had to do, and now she spends her retirement years handing out samples at Costco…
So last October, at the age of 80, Murray ended her retirement and got a job giving out samples at Costco.
She likes observing the people – some go grocery shopping in heels and a full face of makeup and others wear pajamas and slippers. Some people take one sample and others gobble three or four.
“It just comes into my checking account every other week, and I can pay for everything,” she said of her $18-an-hour paycheck.
In recent months, prices have started to surge once again.
It has become clear that the cost of living crisis is not going away any time soon.
The middle class in the United States is going to continue to shrink, and that is not good news for any of us.
Michael’s new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com, and you can check out his new Substack newsletter right here.
Safeguarding Your American Dream: Discover the Power of America First Healthcare
In today’s economy, healthcare costs remain one of the biggest threats to financial stability and family security. Americans work hard to build a better life, yet rising medical expenses can quickly erode savings, force tough trade-offs, and even push families toward debt or bankruptcy. Medical bills continue to rank as the leading cause of personal bankruptcy in the United States, with millions facing underinsurance or unexpected out-of-pocket burdens that no one plans for. Many turn to government-run marketplace plans under the Affordable Care Act, hoping for relief, only to discover that what appears affordable on paper often delivers higher long-term costs, limited real protection, and coverage that may not align with personal values or family needs.
America First Healthcare stands out as a private insurance agency dedicated to helping conservatives and families secure better coverage and better rates through customized, values-aligned options. By conducting free insurance reviews, the agency uncovers hidden gaps in existing policies and connects clients with private alternatives that emphasize personal responsibility, small-government principles, and genuine affordability—often delivering up to 20% savings while providing stronger protection for the American Dream.
The allure of marketplace plans is easy to understand: open enrollment periods, premium tax credits for many households, and the promise of “comprehensive” benefits mandated by law. Yet recent data reveals a different reality, especially after the expiration of enhanced premium subsidies at the end of 2025. Enrollment for 2026 dropped by more than one million people compared to the prior year, with many shifting to lower-tier bronze plans to keep monthly premiums manageable.
These plans feature significantly higher deductibles—averaging around $7,500 nationally—and greater cost-sharing requirements. Families who once paid modest amounts after subsidies now face average premium increases of $65 or more per month, even as they accept plans that leave them responsible for thousands in upfront costs before meaningful coverage kicks in.
High deductibles create a dangerous barrier to care. Studies show that people in such plans are less likely to seek timely treatment for chronic conditions, attend preventive screenings, or fill necessary prescriptions. A seemingly minor illness or injury can balloon into major expenses when patients delay care until problems worsen. For a family of four, a single hospitalization, cancer diagnosis, or unexpected surgery can easily exceed the deductible, triggering coinsurance and out-of-pocket maximums that still leave substantial bills. One recent analysis noted that some proposed changes could push family deductibles toward $31,000 in future years, further exposing households to financial risk.
Beyond the numbers, marketplace plans often carry structural limitations. Coverage for certain critical services may include waiting periods or narrower networks that restrict access to preferred doctors and specialists. Preventive care is required to be covered without cost-sharing, but everything else—lab work, imaging, specialist visits, or ongoing treatment—typically waits until the deductible is met. This reactive model contrasts sharply with the proactive, holistic approach many families prefer, especially those focused on wellness, early intervention, and maintaining health to enjoy life rather than merely reacting to illness.
Values alignment represents another growing concern. Government-influenced plans operate within a framework shaped by federal mandates and political priorities that may not reflect conservative principles of limited government, personal freedom, and ethical stewardship. Families who want to direct their healthcare dollars toward providers and benefits that honor traditional values sometimes find marketplace options feel misaligned, forcing a compromise between affordability and conviction.
Private alternatives, by contrast, offer year-round flexibility without the restrictions of open enrollment windows. Independent agents can shop across a wider range of carriers to design plans tailored to specific family needs—whether that means lower deductibles for frequent medical users, broader provider networks, or add-ons that support wellness and preventive services from day one. Clients frequently report more stable premiums that do not automatically escalate each year, along with genuine cost savings once the full picture of deductibles, copays, and coverage depth is considered.
Take the experience of real families who made the switch. Amanda C. shared that her new plan felt “way better” than what she had through the marketplace. Johnny Y. noted his previous coverage kept increasing annually until he found a more stable private option. Sofia S. expressed delight with her plan and began recommending it to others. These stories echo a common theme: when families move beyond one-size-fits-all government marketplaces, they often discover customized protection that better safeguards both health and finances.
Founder Jordan Sarmiento’s own journey underscores the stakes. In 2021, a six-day hospitalization generated a $95,000 bill. Under a well-structured private “Conservative Care Coverage” plan, his out-of-pocket responsibility would have been just $500. That stark difference illustrates how thoughtful planning and private options can prevent a medical event from becoming a financial catastrophe.
Practical steps exist for anyone questioning their current coverage. Start with a no-obligation review of your existing policy to identify gaps—high deductibles, limited critical-care benefits, or escalating premiums. Compare total projected costs (premiums plus potential out-of-pocket expenses) rather than monthly premiums alone. Consider family health history, anticipated needs, and lifestyle priorities. Private agencies can present side-by-side options that include stronger wellness incentives, broader access, and plans built on shared values of self-reliance and freedom.
In an era when healthcare inflation continues to outpace general cost-of-living increases, relying solely on marketplace solutions carries growing risk. Families who proactively explore private alternatives frequently achieve meaningful savings while gaining peace of mind that their coverage truly works when needed most.
America First Healthcare makes this exploration straightforward through its free review process. Families and individuals receive personalized guidance to close coverage holes, reduce unnecessary expenses, and secure plans that align with conservative principles—protecting wallets, health, and the American Dream without government overreach. Many who complete a review discover they can enjoy better benefits for less, often saving up to 20% while gaining the customization and stability that marketplace plans struggle to deliver.
Ultimately, protecting your family’s future requires looking beyond the marketing of “affordable” government options. By understanding the long-term costs hidden in high deductibles, shifting coverage tiers, and values mismatches, Americans can make empowered choices. Private, values-driven insurance offers a smarter path—one that rewards diligence, supports wellness, and delivers real security. For those ready to move beyond the limitations of traditional marketplace plans, a simple review can reveal options designed to serve families, not bureaucracies. The American Dream thrives when individuals and families retain control over their healthcare decisions, and thoughtful private coverage plays a vital role in making that possible.