Are they stuck in the middle

Both presidential campaigns are talking about restoring the middle class. Every time I hear the words, I have this earworm playing, “Clowns to the left of me, jokers to the right, here I am stuck in the middle with you.” The 1973 Stealer’s Wheel song had a great melody and compelling lyrics.
 
There are many issues worth debating in this election, but few so urgent or more needed than strengthening the middle class.
 
The middle class isn’t just stuck. It is shrinking. Pew Research reports that in 1971, 61 percent of the population was considered middle class, but by 2023, that number had shrunk to 51 percent.
 
Pew continues, “After adjusting for inflation, however, today’s average hourly wage has just about the same purchasing power it did in 1978… In fact, in real terms, average hourly earnings peaked more than 45 years ago: The $4.03-an-hour rate recorded in January 1973 had the same purchasing power that $23.68 would today.”
 
Raising the federal $7.25 hourly minimum wage is a no-brainer. Since 2009, the last time the minimum was raised, the inflation rate has increased 2.42 percent per year. This means 2022 prices were 1.36 times as high as they were in 2009, according to the Bureau of Labor Statistics.
 
Vice President Harris is right putting the spotlight on housing. The average family spends almost 26 percent of its income on housing and there is a severe shortage of inventory for home buyers. Harris’ proposal to build 3 million new houses over four years is admirable but will be difficult to achieve. Zoning and building codes, loan fees, interest rate fluctuations, permitting and inspections add greatly to the costs of building, but the biggest problem is land costs and availability. 
 
We like the concept of making government-owned land available and also see value in helping with the purchase, especially for first-time homeowners. I hope we won’t return to the days when people could buy a home for no down payment. Many of us remember what it was like scraping up the money for a down payment, however I’m not sure about the proposed $25,000 tax credit for first-time buyers. That said, there’s no question more assistance is needed. Home ownership helps assure family stability.
 
Finding a home is made more difficult by corporate investors who wholesale come into a market buy up many homes, limiting market supply and controlling rental prices. Whether a home or an apartment, renters spend up to 42 percent of their income on rent.  Zillo says the average cost of renting a two-bedroom apartment in North Carolina is $1,500 a month. It is $1,745 in Charlotte, $1,582 in Raleigh, $1,259 in Greensboro and $1,144 in Wilson, to give some comparisons.
 
There is also strong evidence of a large price-fixing scheme driving up rents. North Carolina has joined seven other states in a suit against RealPage, saying they collect data from apartment owners, compile it, then use algorithms to help owners maximize rents. It is collusion and illegal.
 
More affordable housing would be an exponential help to both middle class and lower income families.
 
Another big expense to the middle class involves children. Harris proposes giving a $6,000 tax credit to parents of newborns. Trump (through Vance) has suggested a $5,000 per child tax credit. Unquestionably, we must increase the current $2,000 per child credit. 
 
Daycare costs are also a huge problem. The average monthly cost of daycare in the U.S. is $1,572 per month, according to SELF. Only slightly lower is the $1,388 in our state. Many a parent, especially those with more than one child, will tell you it just isn’t worth what they earn when childcare is so expensive.
 
Helping children and families benefits our country in many ways. In addition to stabilizing and increasing the middle class, it will help increase productivity, lower welfare and, perhaps more importantly, will help encourage more families to have children. We aren’t currently having enough births to replace our population. The fertility rate for women was 3.65 children in 1960. Today it is 1.66. 
 
Here’s my spin: The Rs and Ds can duke it out from now until November 5th, but failure to help middle class families and their children isn’t an economic or even a political problem. It is a spiritual problem! Our country has always depended on a strong middle class. Their continued decline doesn’t hold great promise for our future. 
 
We don’t need to be stuck in the middle.
 
Tom Campbell is a Hall of Fame North Carolina broadcaster and columnist who has covered North Carolina public policy issues since 1965.  Contact him at tomcamp@carolinabroadcasting.com