11 reasons Why the Middle Class will Get Poorer with Time?

The middle class, often considered the backbone of a nation’s economy and society, is facing a difficult and uncertain future. Economic inequality, automation, globalization, rising costs of living, and government policies are among the factors that are putting pressure on the middle class and making their middle class life much harder than before.

What is considered middle class?

A middle-class person is someone who is well-educated, has a good job, isn’t extremely poor or very rich, and falls between the two.

Using the term middle class may be misleading because it implies that middle class income lies within the middle of the income distribution, which is not always the case. A middle class family typically owns their own home, owns a car, saves for retirement, and has enough disposable income to spend on certain luxuries.

Why is the middle class shrinking?

Here are some reasons that pushes middle class toward poverty – 

  • Rise in economic inequality:

Economic inequality has been on the rise in many countries over the past few decades, with the gap between the rich and the poor widening. This has led to a concentration of wealth at the top, leaving middle class families struggling to keep up. As the rich continue to accumulate more wealth, the middle class may find it increasingly difficult to afford the basic necessities of life, such as housing, healthcare, and education.

  • Advancement in technology:

Automation and technology are also playing a role in the decline of the middle class. As machines and algorithms become more advanced, many jobs that were traditionally held by middle class workers are being replaced. This has led to a loss of income and job security for this group, as well as a decline in the number of well-paying middle class jobs available to them.

  • Globalization:

Globalization has also had an impact on the middle class lifestyle. As more companies outsource jobs to other countries to take advantage of lower labor costs, middle working class people in developed countries may struggle to find well-paying jobs. This has led to a decline in wages and job security for this group, making it harder for them to maintain their standard of living.

  • Rising inflation:

The rising costs of living is another factor that is putting pressure on the middle class. Housing, healthcare, and education are becoming increasingly expensive, and salaries for middle class have not kept pace. This has led to a decline in the purchasing power of the middle class, making it harder for them to afford the things they need to live.

  • Government policies:

Government policies also play a role in the decline of middle class people. Some argue that certain policies, such as tax policies that favor the wealthy or trade policies that lead to job losses in certain industries, are one of the causes of shrinking middle class income.

  • Global middle class income stagnation: 

Average middle class income has been stagnant or declining in many countries, making it harder for them to afford the things they need to live.

  • Increase in debt: 

With stagnant incomes, many low middle class families are taking on more debt to make ends meet, which can lead to financial instability.

  • Decline in middle class privileges: 

Many middle-class families have seen a decline in benefits such as healthcare, pensions, and paid time off, and it is pushing the middle class toward poverty.

  • The middle class housing problem: 

The lack of affordable housing in many countries is making it harder for small middle class families to find a place to live, leading to financial strain and stress.

  • Political instability: 

Political instability and uncertainty can lead to economic instability and uncertainty, which can negatively impact the middle class.

  • The middle-class aspiration problem: 

It refers to the phenomenon where middle class person and families are finding it increasingly difficult to achieve their traditional aspirations, such as owning a home, saving for retirement, or sending their children to college. 

This is often due to a combination of economic and societal factors, such as rising costs of living, stagnant wages, and changes in the job market. The middle-class aspiration problem is not only an economic problem, but also a social and psychological problem, as it can lead to feelings of frustration, hopelessness, and a sense of being left behind. 

This, in turn, can have a negative impact on the overall well-being of the upper and lower middle class and can lead to a decline in civic engagement and social cohesion.

However, it’s important to note that this is not a foregone conclusion and that steps can be taken to address these issues. Governments, policymakers, and society as a whole can take steps to ensure that the lower and upper middle class is able to maintain its standard of living and continue to play a vital role in the economy and society. 

This can be done by implementing policies that promote economic growth, address inequality, provide job security, and make essential goods and services more affordable.

It’s also important to remember that the middle class is not just an economic class, but also a social class that represents the values of hard work, self-reliance, and opportunity. In this sense, preserving the middle class means preserving a way of life that has been a cornerstone of many societies for centuries.


  • What is considered upper middle class?

In India, a family of four with an income range of Rs.10 lakh to Rs.25 lakh is considered an upper middle class family.

  • What is upper middle class income?

In India, the upper middle class income ranges between Rs.50 lakh to Rs.1 Cr.

  • What is middle class income?

The average income for a middle class family in India ranges between Rs.5 lakh to Rs.30 lakh per annum.

  • What is lower middle class?

The lower middle class is an economic class in India that has an average annual income of Rs.10 lakh to Rs.20 lakh.

  • What are the 5 income classes?

The five major income classes are – 

    • Poor (annual income below Rs.1.25 lakh)
    • The lower middle class (annual income ranges between Rs.10 lakh to Rs.20 lakh)
    • Upper middle class (annual income ranges between Rs.50 lakh to Rs.1 Cr.)
    • Wealthy (annual income over Rs.2 Cr.)

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