Why America’s Upper Middle Class Is Growing

SPEAKER_1 (0:00)

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Alex Ossola (0:18)

A day before President Trump's deadline on Iran, the country rejects a proposal for a ceasefire. Plus, a new report shows that the upper middle class is getting bigger and richer, even if people in it don't feel that way.

Rachel Ensign (0:30)

So people may be upper middle class on paper, but if they can't afford to send their kids to college easily or buy a home, that doesn't really feel very affluent to them.

Alex Ossola (0:42)

And astronauts on the Artemis mission break a more than 50-year-old record. It's Monday, April 6th. I'm Alex Ossola for The Wall Street Journal. This is the PM Edition of What's News, the top headlines and business stories that move the world today.

It's the day before President Trump's deadline for Iran to reopen the Strait of Hormuz. Earlier in the day, Iran rejected a proposal from the US and regional mediators for a 45-day ceasefire in exchange for opening the strait. President Trump said Tehran's counterproposal for a ceasefire is, quote, not good enough, though he called it a significant step. During a press conference this afternoon, President Trump answered a reporter's question about how negotiations between the two countries were going.

SPEAKER_5 (1:28)

Would a new ceasefire include Israel or would it just be between Iran and the US.?

Donald Trump (1:31)

I can't talk about ceasefire, but I can tell you that we have a active, willing participant on the other side. They would like to be able to make a deal. I can't say any more than that.

Alex Ossola (1:45)

Defense Secretary Pete Hegseth said that today and tomorrow would see the largest volume of US strikes on Iran since the start of the conflict. The journal has learned that the US military is making preparations for potential strikes on energy targets in Iran ahead of Trump's deadline of tomorrow night at 8 p.m. Eastern. Trump threatened what would happen if Iran failed to meet it.

Donald Trump (2:05)

The entire country could be taken out in one night, and that night might be tomorrow night.

Alex Ossola (2:10)

A reporter asked President Trump during the press conference whether he was worried that hitting civilian targets like power plants and bridges would violate the Geneva Convention.

SPEAKER_6 (2:18)

Are you concerned that your threat to bomb power plants and bridges amount to a crime suit?

Rachel Ensign (2:23)

No, no, no, no, no, no.

Donald Trump (2:24)

I hope I don't have to do it.

Alex Ossola (2:26)

He added that his aim was for Iran to never acquire a nuclear weapon. Stocks and oil prices both climbed as investors awaited more details on whether the Middle East war would pause or intensify this week. Major US indexes held on to modest gains after Trump's press conference, with the NASDAQ adding about half a percent. Oil prices finished the day about 0.7 percent higher due to short-term supply concerns. Coming up, our reporter took a deep dive into the finances of OpenAI and Anthropic ahead of their expected IPOs. That and more after the break.

SPEAKER_5 (3:03)

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Alex Ossola (3:08)

Anywhere.

SPEAKER_5 (3:09)

What about fancy places like the Canopy in Paris?

Miriam Gottfried (3:11)

Yeah, Hilton Honors, baby.

SPEAKER_5 (3:13)

Or relaxing sanctuaries like the Conrad in Tulum?

Miriam Gottfried (3:16)

Hilton Honors, baby.

SPEAKER_5 (3:18)

What about the five-star Waldorf Astoria in the Maldives? Are you going to do this for all 9,000 properties?

SPEAKER_8 (3:25)

When you want points that can take you anywhere, anytime, it matters where you stay. Hilton, for the stay. Book your spring break now.

Imani Moise (3:37)

Welcome back to What's News. I'm Imani Meliz, host of What's News in Markets, here with an update on American wealth. The number of households considered upper middle class has tripled over the last 50 years. That's according to a recent report from conservative think tank American Enterprise Institute. Economists say that this is happening because white collar wages have been growing faster than prices. WSJ Economics reporter Rachel Ensign spoke to several families who broke into this economic tier and they say they don't feel rich. She joins us now to explain. Thanks for joining us, Rachel.

Rachel Ensign (4:08)

Thanks for having me.

Imani Moise (4:10)

So what's happening with the middle class? Can you set the scene for us?

Rachel Ensign (4:13)

We wrote about this new research that shows the middle class is shrinking, but it's not necessarily because a lot of people are getting poorer. It's because many people have ascended to this new level of affluence in the upper middle class. And if you look at incomes in different groups, even pegged for inflation, everyone has gotten richer over the last 40, 50 years, even accounting for inflation, but especially the most affluent people. What's interesting is the recipe that seems most surefire for joining the upper middle class or staying in it seems to be get a degree, a bachelor's degree is good, graduate degree, even better, and be married or have a partner that you live with. And those two things are the ticket to being in the upper middle class.