Middle class squeeze

The middle class squeeze occurs when middle-income households experience stagnating or declining earnings, while living costs—such as housing, healthcare, and education—rise faster. This reduces their disposable income and financial security, making it harder to save, invest, or afford a comfortable lifestyle. Factors include wage stagnation, rising costs, and economic shifts that favor higher earners. Consequently, middle-class families may feel stretched thin financially, impacting their ability to achieve long-term stability and upward mobility.