The American dream is slipping away.
Most US citizens no longer enjoy “a minimal quality of life” due to skyrocketing costs, a depressing new study has uncovered.
Ludwig Institute for Shared Economic Prosperity conducted research into the economic well-being of the country’s residents, defining “minimal quality of life” as the ability to pay for a “basket of American dream essentials”: housing, food, transportation, clothing, medical costs and basic leisure expenses.
The leisure expenses included access to cable TV and streaming services, as well as the ability to pay for six movie tickets and two baseball tickets per year.
The Minimal Quality of Life index goes “beyond traditional cost-of-living measures to provide a more comprehensive understanding of what it takes to secure a foothold on the bottom rung of the American dream ladder and have a real opportunity to climb it over time,” the authors wrote.
The bottom 60% of American households by income fell well short of that threshold, the researchers damningly determined.
“The MQL reveals the harsh reality that the American dream, with its promises of well-being, social connection, and advancement, is out of reach for many,” the authors concluded. “Rising costs in essential areas like housing, healthcare, and education significantly outpace wage growth, leaving millions struggling to attain even a minimal quality of life.”
An average American couple with two children would need to spend $120,302 per year to cover the minimum quality of life expenses, the researchers determined.
Skyrocketing costs over the past two decades are to blame, with medical premiums rising 301% from 2001 to 2023.
Transportation, groceries and childcare have all increased in price by more than 50% on average across that same period.
“I get tired of the ‘Stop your Starbucks latte habit’ [advice], because in reality it’s not people’s fault,” financial planner Laura Lynch told CNBC in relation to the study. “The structures around us have created an expectation of a lifestyle that is increasingly becoming unreachable for folks.”
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