Man Argues $50 an Hour Is 'New Middle Class' in Viral Video

Orlando real estate agent and content creator Freddie Smith stirred an online debate in a viral video saying that earning $50 an hour has become the "new middle class." His comments come as the U.S. economy sees increased pressures on housing and everyday necessities.

Economists define middle income as earning between two-thirds and double the median household income. Smith's viral dialogue suggests the benchmarks for achieving the middle-class lifestyle are shifting.

"With the cost of living these days, $50 an hour seems like the new middle class," Smith argued in the clip that has garnered over 113,000 likes on TikTok and nearly 32,000 likes on Instagram.

Smith's commentary hits as median weekly earnings for full-time U.S. workers stand at $1,118, which is $27.95 per hour, according to recent statistics. It reflects a 4.5 percent increase from the previous year but still leaves the median annual salary at $58,136—far from Smith's proposed rate ($104,000 annually).

But does a median income of nearly $28/hour earn you a median house and lifestyle?

With stubborn inflation still keeping the cost of food, shelter and gas up since the pandemic's onset, Americans' purchasing power continues to wane, despite salary upticks.

While wages grow incrementally, housing costs are skyrocketing. Realtor.com's Chief Economist Danielle Hale said that the monthly cost of financing a typical home jumped by $166 in October compared to last year.

As a result, to comfortably purchase a median-priced home at $425,000 in 2023, homebuyers need an annual income of $119,500—more than twice the median U.S. salary—amid monthly mortgage costs of $2,405.

That means only a minority of Americans can afford a home as 18 percent of individuals and 34.4 percent of households make over $100,000 annually.

The Orlando real estate agent has a problem with wage disparity too. In the viral video, Smith points out the absurdity of the current labor market, where some entry-level fast food positions offer $16 an hour, while some jobs demanding higher education also start pay around those levels. California recently raised the minimum wage for fast food workers to $20 an hour.

Some blue-collar workers earn between as much as $55,000 per year, according to Indeed, and at times over the six-figure mark, while the average starting salary for a college grad is around $58,862.

The mismatch of wages to living expenses leaves even those with advanced degrees struggling. The content creator recounted a conversation with a former teacher turned bartender, who swapped the classroom for the bar when he realized he could double his income.

That narrative is underpinned by stark realities. The average U.S. rent stands at $1,036, though it varies significantly across cities. Home prices remain stubbornly high, and although mortgage rates have slightly eased after reaching 8 percent, they are still near record levels. The middle class, historically characterized by home ownership, stable retirement savings, healthcare coverage, and disposable income for leisure, is shrinking and under pressure.