A recent analysis by the Ludwig Institute for Shared Economic Prosperity (LISEP) indicates that a significant portion of American households are unable to meet the financial requirements for a basic standard of living, according to CBS News. This assessment goes beyond traditional measures, considering essentials like food and shelter and factors such as access to technology, education, healthcare, and childcare.

LISEP’s “Minimal Quality of Life” index provides a comprehensive view of Americans’ economic well-being, suggesting that conventional indicators like GDP and unemployment rates may not fully capture many's financial challenges. According to the study, the bottom 60% of U.S. households are falling short of the income needed to achieve this minimal quality of life.

In 2023, households in this segment earned an average of $38,000 annually. However, LISEP estimates that an income of $67,000 is necessary to afford the items and services included in their index, which encompasses professional attire and basic leisure activities.

Gene Ludwig, chairman of LISEP, emphasized the concerning nature of these findings, stating, “The middle class has been declining—we just haven’t recognized it fully. It’s really dangerous because it’s the kind of thing that leads to social unrest, and it’s not fair. The American dream is not that it’s given to you—it’s that if you work hard, you have a chance to get ahead and achieve the things in life that you want to achieve.”

The study suggests that while headline economic indicators may portray a thriving economy, they often fail to reflect the lived experiences of many Americans. Despite contributing to economic growth, many individuals are not reaping proportional benefits, highlighting a disconnect between economic performance and personal financial stability.