As the economy remains uncertain and AI continues to eliminate many jobs that are currently done by menial workers, there will be a real shift in the economy of the middle class. Careers and jobs do come and go, but never in history has the employee landscape been forecasted to change so drastically. With unemployment and lowered wages come the loss of standard of living. These are things that many forecast will not be attainable for the average American five years from now.
Private School
Although education is guaranteed to every child in the US, not all educational institutions are the same or equal. Many in the middle to upper class have chosen to pay the additional expense of sending their kids to private schools to gain the advantage. Over the next five years, it will be nearly impossible for most people in the middle class to afford to send their children to anything but public school.
New Cars
New cars used to be a good investment, but with the way that technology keeps changing and the growing cost of owning new, many people five years from now will not be able to afford to buy a new car. The cost of cars is increasing at a much higher rate than the salaries of the middle class, so they will not be affordable.
Homeownership
The American Dream used to include owning your own home. With interest rates on the rise, the soaring cost of living, and the unavailability of inventory in many cities around the nation, many will not be able to afford the cost of a mortgage. While homeownership once was something that people aspired to, now it is something that people can no longer attain.
Prescriptions
Where once medications that you required were naturally covered by your insurance, most people who have insurance are not getting their prescriptions paid for. When you add that to the expanding cost of healthcare, many will not get what they need to live and that is going to be a real problem in five years time.
Travel
Although not many people can afford to travel the world, many in the middle class have been able to take a vacation or two with their families. They also have had the luxury of time off to do so. With competitive employment and shrinking salaries, those times away are dwindling. People will have to forego the beach and mountain trips to pay for electricity and food.
Investments
Although the average American is not great at saving, most of them could put a little away every month as a safety net. With the economy being as it is and costs soaring, many no longer have the extra they need to put a little away every month. The middle class will no longer have the buffer they used to just five years from now.
Childcare
Childcare costs have grown out of control. Things like insurance rates to operate and heavy regulation for childcare centers have made it nearly impossible for middle-class people to send their children to daycare. According to a Care report, the average cost of daycare is $321 a week, which is more than most middle-class Americans make working for a living.
Organic Food
Organic food is supposed to be better for you because it is free from pesticides and chemicals in the growing process. Because food costs continue to climb and the supply chain lags, driving foods up even higher, most people will forego the organic and stick with the general farming-supplied foods.
Brand Name Clothes
Brand-name clothes are something that only the upper to middle class can afford, or could afford. As the economy shrinks and people are tightening their belts, designer belts will no longer be able to be tightened around middle-class individuals. The good news is people can still get designer clothes, but they will most likely have to from thrift stores or online auctions.
Cell Phone Upgrades
In the past ten years, people have waited in line to get the latest version of the iPhone or to upgrade their gaming laptops. As people lose their disposable income, however, technology will no longer be as disposable to people. The middle class will opt to hold onto their electronics longer than they might want to, but it is a sacrifice that is minimal to other changes coming.
Streaming Options
Over the past several years, many have moved away from television and hopped on one streaming company or maybe several. With the cost of living, as is, people are looking at places where they can make cuts. Streaming services are one place where they can cut back and still have enough entertainment with commercials.
Music Streaming
Most people moved away from iTunes as soon as they realized that they could download music for a subscription price that would be a fraction of what they were paying. Now people are considering not paying for music at all. There are many free music services for people to use like good old FM radio.
Gym Memberships
Having a gym membership is something that most people do, whether they use them or not. Statistics tell us that 64 million Americans currently have a membership to a gym. People are ditching the gym and choosing to walk outdoors and engage in activities outside of gym equipment to save money every month. That trend will only continue as times get tighter.
Electric Cars
For many things that people buy, they do so by paying more upfront to save in the long run. Electric cars might save you money in the long term, but in five years, people won’t be able to think about future savings; they will be thinking of the here and now.
Coffee Shop Coffee
Mr. Coffee will probably be brewing again in most houses around the US in the next five years. Although having a java made by someone else might be great, it just isn’t feasible for a seven-dollar cup of coffee daily. Most middle-class people will begin to see a stop at Starbucks as a luxury rather than a must on the way to work.
Pets
We all love our pets, but they do not come for free. Dog food is increasing in cost, just like human food. Of course, people aren’t going to ditch their loved ones, but they are going to think twice about expanding their families with a new puppy, or more, a designer dog.
Home Remodeling
Home remodeling was rampant during the pandemic. Many people spending more time at home saw the advantage of adding on and expanding their living space. As the cost of materials climbs and people aren’t able to get home improvement loans, home remodeling and home renovations will be something that only the wealthy can afford.
Blockbusters
One industry that really suffered during the pandemic was the movie industry. Although it is starting to make a comeback, those days might be limited. Many who have streaming services or comfy couches are staying home and enjoying popcorn out of the microwave, being able to pause at will, and not paying a fortune to watch a blockbuster film.
Fine Dining
Many people eat out, but most choose to eat at chain and fast food restaurants. Although it wasn’t a regular thing, middle-class people were able to enjoy a meal at a fine dining restaurant. As the cost of food rises, and staffing becomes harder to find, many in the middle class will no longer be fine with dining out at expensive restaurants.
The economy is in a downtrend at worst, and heading into a recession, at best. That is leaving many who used to have disposable income with little to no income for the necessities of life, little less the luxuries they used to enjoy. Over the next five years, as AI takes over and menial labor is replaced, many will find themselves tightening their belts and seeing regular activities as luxury ones.
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