Five Years, No Progress For Middle Class While Rich Prospered Under Biden, Census Shows – Financial Freedom Countdown

Americans saw almost no meaningful rise in their standard of living during President Joe Biden’s tenure.

According to the latest Census Bureau data released on Tuesday, median household income rose less than 3%; about $2,150 between 2021 and 2024.

Adjusted for inflation, the median U.S. household brought in $83,730 last year, essentially unchanged from levels five years earlier.

Recovery Came With a Price

Biden claimed to inherit a battered economy from the shutdowns, but the subsequent recovery was undermined by the worst inflation surge in four decades.

Wages climbed as employers scrambled to hire in 2021 and 2022, yet those gains were quickly swallowed by rising prices.

As a result, households did not return to their inflation-adjusted peak until 2023, and progress stalled soon after.

Rich Households Pulled Ahead

The Census data shows a widening wealth gap. The top 10% of households saw incomes jump 4.2% in 2024, reaching $251,000.

By contrast, the bottom 10% saw virtually no change, with incomes averaging just $19,900.

For middle-class families, frustration is mounting as they watch the wealthiest Americans continue to pull ahead despite overall economic stagnation.

Gender Wage Gap Widened Again

Men fared better than women in the Biden years.

Median earnings for full-time, year-round male workers rose 3.7% last year, while women’s earnings were flat.

That decline pushed the female-to-male earnings ratio down to 80.9%, the second consecutive annual drop after two decades of steady improvement.

Advocates warn that more women leaving the workforce; often mothers juggling family and inflexible workplaces has made the setback even worse.

Poverty Fell, But Millions Still Struggle

The national poverty rate edged down to 10.6% last year, from 11% in 2023.

That still left nearly 36 million Americans in poverty. Census officials define poverty for a family of four as earning less than $31,000 a year; a threshold that advocates argue remains unrealistically low given today’s cost of living.

Supplemental measures that include benefits like food aid suggest little overall progress was made.

Married Couples and High School Grads Saw Gains

Not all the news was grim. Married couples enjoyed a 5% jump in median household income, rising to $128,700.

Workers with only a high school diploma also posted income gains, bucking the wider stagnation. But these bright spots were overshadowed by an overall picture of economic flatlining for much of the middle class.

Health Coverage Stayed Stable Despite Medicaid Cuts

On health care, the uninsured rate held steady at 8%; near historic lows.

Still, Medicaid enrollment declined as states resumed removing ineligible recipients, dropping to 17.6% of the population. Job-based coverage and Affordable Care Act sign-ups filled in some of the gap.

Perhaps the most striking finding: Americans are no richer today than they were before the 2020.

Median income in 2019 was $83,260; barely different from 2024’s $83,730, a change Census statisticians say is within the margin of error.

That’s a far cry from the previous five-year stretch (2014–2019), when median income surged nearly 21%.

Inflation: The Silent Thief of Wages

Even though inflation cooled to 2.9% in 2024, down sharply from 8% in 2022, the damage had already been done.

Rising prices over Biden’s first two years erased much of the wage progress workers thought they had made.

For millions of families, the cost of housing, groceries, and energy continues to outpace income growth.

Rising Frustration Among Voters

Polls reveal widespread voter dissatisfaction with Biden’s economic performance.

A Financial Times poll found 80% of voters identified high prices as their biggest financial challenge; 58% disapproved of his economic policies, compared to just 40% approving.

More trust rested in Trump on economic issues.

The stagnation helps explain why polls consistently show Americans sour on the economy despite low unemployment.

Inflation’s erosion of purchasing power, coupled with a widening gap between rich and poor, had left many feeling stuck.

Harris Struggled to Escape the Shadow

In the 2024 election, Vice President Harris faced an uphill battle in the shadow of ongoing economic dissatisfaction with the Biden administration.

Analysts called the election environment “inherently difficult” due to inflation concerns, which harmed Democrats at the polls. Battleground states; such as Georgia, Michigan, Arizona, and Pennsylvania, were particularly hit by inflation.

Policy Changes Needed to Reverse Middle-Class Decline

As Americans confronted stagnant wages, persistent inflation, and widening inequality, the Census data underscores a sobering reality: for much of the middle class, the last five years have brought little progress.

While the wealthiest households prospered, millions of voters felt the pinch in their daily lives; shaping opinions at the ballot box and leaving political leaders under pressure to deliver tangible improvements.

Economists and advocates warn that without sustained, targeted policy changes to address cost-of-living pressures and support struggling families, these trends are unlikely to reverse anytime soon.

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