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Increase of college costs. The cost of attending college has also not been left behind. It has continuously increased each year thus squeezing the already squeezed middle-class families. In the 200-2001 academic year, the cost of attending a four year course was $3,925 but the cost almost doubled in the 2005-2006 academic year to $5,491 in real terms representing a $1,566 annual increase, a 39 percent increase.

This has been coupled by a federal decline in federal student aid but at the same time increasing interest rates for student loans (Johnson D. 2008).  

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Possible solutions. A possible solution to the middle-class squeeze is to turn around the misconception that taxes add to the squeeze. The middle-class squeeze began at the same time as the corporate-funded tax cutting fervor by the government. The squeeze can be said to be brought as a result of tax cuts in government services and regulations. Health care products continue to rise due to the government to inaction and deregulation.

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The government’s decline of corporate power is decreasing and the gap is being filled by corporations which have been left to squeeze the people. Thus the government should take action and be in the frontline to flex its muscle in tax cuts (Waxman H. 2006).   


We have established that although the median income for most middle-class families is decreasing, the average common expenses for such kind of families have continued to rise. The average annual health care insurances costs, associated energy costs and average cost of college education have all but increased. This results in an economic squeeze of the middle-class that undermines the standards of living for such families.

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