In 2023, about 11% of Americans officially lived in poverty, according to the U.S. Census Bureau. Even more struggle financially, though — and the share may be higher than you think.
Many of the headline economic stats you see are based on “survival indexes,” says Gene Ludwig, founder of the Ludwig Institute for Shared Economic Prosperity, and don’t reflect Americans’ full financial picture.
“What people are thinking about — a real shared prosperity — is not, ‘I can survive,’ but, ‘What does it take to live a middle-class life?’” he says. ”‘What does it take to be on the first rung, at least, of the American dream?’”
To that end, LISEP developed a “Minimal Quality of Life Index,” which takes into account not only essentials, such as food and shelter, but also the costs living a fulfilling life with a chance at upward mobility. Food costs in the model, for example, include occasional trips to casual restaurants as well as the cost of hosting an annual holiday meal. The index factors in basic leisure costs, such as cable and streaming subscriptions, and trips to the six movies and two MLB games per year in the cheap seats.
According to LISEP’s analysis, most Americans don’t meet that standard. In 2023, the bottom 60% of households by income fell well short of the threshold for a minimal quality of life.
