Ask most economists, and they will tell you that the U.S. middle class is richer today than they were a generation ago.
But most Americans don’t feel that they are any better off than their parents were.
True, wages today, adjusted for inflation, are higher than in the 2000s.
And most middle-class families are not struggling to buy the basics, that is, food, housing, healthcare, transportation, their children’s college.
But inflation is pinching, and that’s what makes it feel so hard to afford small luxuries.
Putting money away in savings and investing should be easier, but most Americans today find it difficult.
Why?
The flood of luxury goods and experiences are tempting and there is not the same save-for-a-rainy-day mentality as there was a generation ago.
So, yes, most Americans today enjoy a better standards of living than their parents did, but they don’t notice it because they are not as disciplined in their spending habits.
