WASHINGTON (Spglobal) - A new study paints a grim picture of American economic life: Most households aren’t making enough to cover the basic costs of living, even when working full time.
According to the Ludwig Institute for Shared Economic Prosperity (LISEP), the majority of Americans are falling short of what the organization calls a “Minimal Quality of Life.” The report defines that standard not just by food and shelter, but also by access to education, healthcare, professional clothing, child care, and basic leisure—essentials for stability, not luxury.
The analysis zeroes in on the bottom 60% of U.S. income earners, who brought in an average of $38,000 in 2023. To meet the threshold for a minimal standard of living, they’d need to earn about $67,000, which is almost double their current income.
“The middle class has been declining — we just haven’t recognized it fully,” LISEP Chairman Gene Ludwig told CBS News. “The American dream isn’t supposed to mean living in a tent or stealing to survive. It’s about having a shot at a decent life through hard work.”
From 2001 to 2023, the cost of this “American dream basket” doubled. In-state public college tuition jumped 122%. Health care and housing spiked. Meanwhile, median wages for the bottom 60% fell by 4% after adjusting for those same costs.
While top earners have seen faster income growth, the rest are barely treading water. And unless something changes, the divide is only going to widen. LISEP says the goods and services that define a basic standard of living are inflating faster than wages can keep up with.
In other words, the American economy may be growing, but for most U.S. households, it’s not growing in a way that feels like progress.