Produced by: Manoj Kumar
Behind the polished cars and suburban homes lies a hidden financial crutch: debt. Studies reveal the middle class props up its lifestyle with borrowed money—masking struggle behind glossy appearances.
While costs skyrocket, incomes limp. Since the 1970s, middle-class wage growth has barely budged, even as housing, education, and healthcare drain wallets. The math doesn’t just not add up—it subtracts.
Keeping up with the Joneses has a credit limit. Researchers say middle-class families often spend to signal status, not security—fueling a toxic loop of image-driven debt and suppressed savings.
From student loans to store cards, credit is a gateway drug. Young adults in particular are lured into debt early, and many never recover—mentally or financially. This isn’t just spending; it’s systematized addiction.
Mortgage. School fees. Groceries. Health premiums. Middle-class budgets are dominated by non-negotiables, leaving little room for investment. Economists say this financial rigidity is baked into the system.
Pensions are out, 401(k)s are in—and that shift has quietly turned millions into unprepared retirees-in-waiting. Many won’t ever afford to stop working. The dream ends not with rest, but with overtime.
Higher education was once the ladder out. Now it’s often the weight holding people down. With degrees costing more and paying less, the “college equals success” promise has curdled into a financial trap.
Middle-class life looks stable but feels suffocating. Mental health studies link debt-driven lifestyles to chronic anxiety and depression. The grind doesn’t just cost money—it corrodes well-being.
Economists call it the “middle-income trap”—where countries (and families) rise, then stall. Innovation slows, costs rise, and growth freezes. The middle class isn’t a launchpad. It’s a holding cell.