Date of Graduation

5-2026

Document Type

Thesis

Degree Name

Bachelor of Science

Degree Level

Undergraduate

Department

Finance

Advisor/Mentor

Dr. Craig Rennie

Abstract

This thesis examines the erosion of the middle class in the United States from 2008 to the present from a financial perspective, specifically focusing on the interconnection between household debt, asset affordability, and income growth. The 2008 financial crisis sparked a period of expansionary monetary policy, which aided the recovery of asset prices and equity markets. However, these gains have far exceeded real wage growth for middle-class households, which has resulted in a widening gap in affordability. As these citizens struggle to maintain consumption habits and access to goods and services associated with upward mobility, mortgages, student loans, and consumer credit continue to increase, furthering the erosion. This paper argues that the financial position of the middle class has been weakened due to the stagnation of income growth, increasing asset prices, and rising leverage among households, stoking fears over the long-term economic stability in the United States.

Keywords

Economy; Finance; asset affordability; middle class; federal reserve

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