Most Americans don’t earn enough to afford basic costs of living

CBS News: “The gap between what Americans earn and how much they need to bring in to achieve a basic standard of living is growing, according to a new report. The analysis, from the Ludwig Institute for Shared Economic Prosperity (LISEP), looks beyond whether people can afford daily necessities like food and shelter to consider whether they have the means to pay for things like the technology tools necessary for work, higher education, and health and child care costs. In tracking costs associated with what the group calls a “basket of American dream essentials,” LISEP says its Minimal Quality of Life index provides a truer picture of how Americans are faring than standard economic data, such as the nation’s gross domestic product and jobless rate. The index captures the annual change in the typical costs facing low- and moderate-income households who are looking to maintain a basic quality of life.  “We analyze these components not just in terms of financial figures but as crucial elements that shape a family’s capability to achieve a desirable standard of living,” the group explains in a paper describing its approach.  The findings? For the bottom 60% of U.S. households, a “minimal quality of life” is out of reach, according to the group, a research organization focused on improving lower earners’ economic well-being…”

See also: The Minimal Quality of Life Index (MQL) offers a more comprehensive measure of the cost of living than traditional metrics, revealing the resources needed to secure a foothold on the bottom rung of the American dream and climb it over time.