Majority of Americans Can’t Achieve a Minimal Quality of Life, According to New Ludwig Institute Research

Economic opportunity remains far out of reach for many low- and middle-income (LMI) Americans, with little to no improvement in wages or the ability to achieve a minimal quality of life for most since 2001, according to two innovative new metrics released by the Ludwig Institute for Shared Economic Prosperity (LISEP).

LISEP’s Minimal Quality of Life (MQL) Index—an advanced cost-of-living measure that not only tracks essential expenses but those necessary for well-being, growth, and upward mobility—reveals that from 2001 to 2023, the cost of affording basic economic security doubled, rising 99.5%, 38% faster than the Consumer Price Index. Housing costs soared 130%, healthcare 178%, and the savings required to attend an in-state, public university 122%. Meanwhile, median earnings have declined for this group by 4% after adjusting for MQL.

„For too long, traditional cost-of-living measures have focused too much attention on mere survival. This approach ignores the fundamental truth that surviving is not living even a minimal quality of life,“ said LISEP Chairman Gene Ludwig. „When confronted with a measure that captures the cost of a life offering opportunity, dignity, and the ability to pursue one’s potential, it becomes clear that middle- and working-class Americans aren’t just being squeezed—they’re being priced out of the American dream.“

The Shared Economic Prosperity (SEP) Measure, a companion to the MQL, compares the income needed to achieve a minimal quality of life (as defined by the MQL) to actual income distribution, revealing a stark imbalance. In 2023, the bottom 60% of households earned just 22.1% of all disposable income but needed 39% to meet MQL. On average, these households earn $38,000 per year, falling more than $29,000 short of the MQL.