“Working class” has long been an ambiguous label for low-income earners, people without four-year degrees, and blue-collar workers. But according to the study, half of upper-income adults—those earning above $155,600 annually—now also see themselves as working class. That income would have placed them firmly in the upper middle class in the early 2000s.
Middle-income and even high earners may now feel their experiences mirror struggles traditionally associated with the “working class,” as milestones like homeownership have become even harder to achieve.
According to the Harris Poll, these top earners are pinching pennies just like many of their lower-income counterparts.
Fifty percent have used “buy now, pay later” plans for purchases under $100, and 45% have delayed medical care because of the cost. Many also use rewards points to pay for essentials or rely on credit cards to make ends meet.
“The illusion of wealth is exhausting: Many top earners say people assume they can afford it all, yet behind the image of success are quiet sacrifices,” the report explains.
Has the price of gasoline or food receded? Inflation & interest rates seem to be on the rise.
Perhaps even more of the $155,000 “working class” feel under assault.
Housing pricing has receded a smidge. But that is a function of increasing interest rates and resulting reduced buyer demand.
The biggest shift happened at the $400,000 price point.
Among 228 cities compared directly between 2020 and 2026, the median share of homes listed under $400,000 fell from 72.6% to 28%.
The median share of active listings priced under $400,000 today is just 35.7% across the major U.S. cities analyzed in the report.
Why does this matter? I think we know what a white collar job is; what a blue collar job is. Blue collar usually sees himself as working class. No question some of those jobs are well paid. But still working class.
Actually, if you look at mercer island, a desirable middle class, the price tag is actually closer to $2M+. I went with $1M.
I know $1M sounds like a big number, and many think it makes you wealthy. The places like bay area, seattle, a decent 3/4 bedroom with 1800/2000 sq feet with little to no yard , will cost you much more than $1 M.
The home prices jumped over 30%, 40% during COVID but it never came down, it is only increasing at low single digit or moving sideways. Housing affordability is a serious issue.
The question is, is $150K a middle class, I showed you the math. My point is simple there are many places in US where $150K is middle class. It is not even upper middle class.
The rent for 2 bedroom at Seattle is $4500, but if I am going to buy at least I am looking for a 3 bedroom and 1800/ 2000 sq feet. Even going for a 2 bed house, or 3 bed condo, it is going to cost more than $1M.
Housing affordability is a real issue. When you own a house with legacy cost basis, you don’t understand it, your only concern is property tax.
Excuse me, isn‘t that what you collectively voted for?
Income / Stakeholder Group Trump II Net Impact Main Drivers
--------------------------------------------------------------------------------------------------------------------------
Bottom 40% Net Negative Yale Budget Lab: combined OBBBA + 2025 tariffs cut bottom-
(0th-40th percentile; (largest loss) decile after-tax income ~7% (~$2,700/yr). CBO finds the bottom
deciles 1-4) two deciles net negative from OBBBA alone. Tariffs act as a
regressive consumption tax, hitting food/apparel/auto prices
hardest as a share of income; minor tax provisions (no tax on
tips/overtime) don't fully offset.
Middle 20% Net Negative Falls within the bottom 90% that Yale finds averages a net
(40th-60th percentile; (moderate) loss once tariffs and OBBBA are combined (median household
deciles 5-6) roughly -1% to -2% in recent updates). Modest individual tax
cuts are largely offset by tariff-driven price increases.
Upper-Middle 30% Net Negative Still inside the group Yale's own report describes as losing
(60th-90th percentile; (smallest loss in on net -- 'all income groups except the top decile.' Loss
deciles 7-9, roughly the bottom 90%) narrows here versus lower deciles (more benefit from OBBBA's
$105k-$220k) bracket/SALT provisions) but does not flip positive.
90th-99th percentile Modestly Positive The published +1.5% figure is an average for the ENTIRE top
(affluent, not top 1%) (smaller share of the decile (90th-100th). Gains within that decile skew toward
top decile's gain) capital and business ownership, which concentrates further up
the scale -- so the 90-99% slice likely sees a smaller gain
than the decile average suggests, even though it's nominally
'winning.' Inference from the concentration pattern, not a
direct citation.
Top 1% & Top 0.1% Net Positive Extension of top individual rates, permanent pass-through and
(disproportionate) corporate tax cuts, capital-gains-heavy income, and
deregulation-driven asset appreciation concentrate here. This
slice likely accounts for most of the top decile's +1.5%
average gain, meaning the true benefit to the top 1%/0.1%
specifically is almost certainly well above that blended
figure.
Trump Family & Direct Net Positive Major revenue growth across family ventures (real estate,
Family Enterprises (outlier magnitude) foreign licensing, media, crypto ventures like World Liberty
Financial). Driven by tax extensions, rapid deregulation, and
high-dollar foreign/private investment. Oversight reports
(e.g. House Judiciary Dems, Nov. 2025) and investigative
journalism characterize elements as self-dealing/corruption
tied to pardons and regulatory actions; the White House
disputes this, stating there are 'no conflicts of interest.'