by Leslie Schwab

Created on: September 01, 2009   Last Updated: September 03, 2009

The cost of living in the United States has been steadily rising since 1970. Prior to that time, the majority of families were supported by one income, which was often sufficient to pay off a mortgage on a comfortable home in a decent neighborhood, own a late-model car, and still be able to put away a little money in savings. Today, it requires two incomes that total at least sixty to seventy thousand dollars a year to maintain a similar lifestyle in certain parts of the country. A much higher income would be needed to enjoy a reasonable standard of living in a major metropolitan area.

The gap between the "haves" and the "have nots" started to widen during the 1980s, when tax incentives benefited the wealthy, while major corporations were encouraged to outsource many of the blue-collar manufacturing jobs that had been plentiful. At the same time, many welfare programs were being cut. Labor unions began their steep decline in both membership and political influence. The shift from manufacturing jobs to lower-paid service jobs has steadily progressed over the past thirty years. Even those in established professions, such as teachers, nurses, and police officers, have struggled to make ends meet.

It isn't that people are indulging in lavish spending. Just basic needs such as transportation and health care have taken a progressively larger bite out of our incomes. An "economy car" can easily exceed twenty thousand dollars, while health insurance premiums for a typical family of four can run ten thousand dollars a year or more. The cost of a college education can cost over thirty thousand dollars a year at a private college. If these realities confront middle-income families, what happens to those with more modest incomes?

For those who work at jobs paying from eight to twelve dollars an hour, the struggle is to simply keep a roof over one's head and purchase only the most basic necessities. The poverty line for a family of four exceeds twenty thousand dollars a year, which requires working forty hours a week at a job that pays ten dollars an hour. Such is the reality for employees at Wal-Mart, and many other business establishments. Their incomes won't cover medical emergencies, since most cannot afford health insurance. A second job is needed to to plan for emergencies or purchase a low-end computer for their kids. In the year 2009, being poor is becoming the new middle-class!

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