Grant Cardone calls America's middle class 'oppressed' and 'naive'

Grant Cardone calls America's middle class 'oppressed' and 'naive' — here's why

Vishesh Raisinghani

Sun, May 12, 2024, 4:44 AM 4 min read

While economists and policymakers focus much of their attention on the middle class, real estate mogul Grant Cardone believes the category itself is becoming irrelevant.

“The number one problem with the middle class is that you guys bought the idea of a middle class,” he said in a YouTube Short, in which he goes on to call middle-class Americans “oppressed” and “naive” people.

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Here’s why he insists the middle class dream is a fallacy and what ordinary people can do to escape it.

Middle class fallacy?

Cardone’s key issue with the middle class dream is that it’s fueled by excessive debt and consumerism. He talks about how student debt, mortgages and car loans can trap people in lifelong debt servicing.

“That ain’t freedom, man,” he said.

It’s true that ordinary families have borrowed excessively to keep up with the cost of homes, cars and education. At the end of 2023, American households collectively had $17.5 trillion in total debt, $12.25 trillion of which was tied to mortgage balances, according to the New York Federal Reserve Bank. Credit card, auto loans and student debt have also been on the rise.

Coupled with heightened interest rates, this debt burden is looking increasingly precarious.

Read more: This little-known investment strategy can save you thousands on your taxes

There’s also a demographic shift underway. Pew Research found that the number of Americans considered middle class has been steadily shrinking. In 1971, 61% of the country’s population met their definition of “middle class.” In 2021, that ratio was down to 50%.

More American adults, according to Pew’s data, are either dropping into lower-income or rising into upper-income categories. With that in mind, Cardone’s solution is to study people in the upper-income category and try to incorporate some of their strategies to escape the middle-income trap.