Why Middle Class Crunch?
Our goal
We envision "Middle Class Crunch" as an internet think-tank where America's middle class can meet, find tools to discuss its financial problems and ultimately come across practical solutions.
We want to help middle class people of America have a better understanding of their relationship with money so they can improve their financial lives.
Being middle class now vs. being middle class then
Why targeting the middle class? First of all because despite our different backgrounds and upbringing, Seylom, Keith and I all feel part of the American middle class. But also because for more than a century, the American institutions have taken pride in providing opportunity, therefore allowing its citizens as well as immigrants from all over the world to climb the social ladder and thrive. Being (or becoming) middle class in the 20th century was the quintessential expression of the proverbial American Dream.
But we feel things have changed for the worse in the last couple of decades, and being part of the American middle class does not mean what it used to. Despite the high standards of living we are enjoying today, many more families believe they are getting worse off financially – or at least have the impression it is harder to get by. Is it a reality or simply a perception?
Whether or not this state of the union is justified, there are many reasons for middle class people to feel crunched; globalization of the economy, cost of living increasing faster, peer pressure leading to feverish consumption and overspending, manufacturers over producing, faster product obsolescence etc. The old American middle class per se is shrinking – or it could be that it’s metamorphosing.
But the core of the problem, it seems, is financial education – or lack thereof.
What happened to the American Dream?
The recent housing bubble proved it without the slightest doubt. It appears a large portion of the American public – especially young adults – lacks two vital things. For one, a good grip on what it means to be financially responsible today. And secondly, the ability to understand how the many financial tools made available to the public today work. Many American families have made catastrophic financial decisions over the last 15 years; a lot of them could have easily been avoided. The reason could be that core foundations such as the school system and the American family fail to provide our offspring with enough basic financial awareness.
America and its middle class slipping into abysmal debt is no stranger to that fact. We cannot objectively scrutinize our leaders’ financial blunders because too often, our own finances are in shambles. Be it for an individual, a business, a state or a nation, constantly relying on credit to keep going, and accepting to be continuously in debt are not – and cannot – be perceived as normal and acceptable situations. This will undoubtedly lead a once great nation to its untimely demise.
This website’s reason for existing is to try and help address this issue with an upbeat approach. We hope you'll help us in this endeavor.