Why Scott Galloway Says America Is Failing the Middle Class and What Families Should Do in 2026
Why Scott Galloway Says America Is Failing the Middle Class and What Families Should Do in 2026
Gabriel VitoSun, February 22, 2026 at 12:55 AM UTC
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whitebalance.space / iStock.com
For many middle-income families, nothing is technically “wrong.” The bills get paid. But year after year, the margin gets thinner, and even a small surprise expense feels bigger than it should.
The system is simply less forgiving than it used to be.
Scott Galloway has been blunt about that shift. Speaking in an interview on NBC News NOW, the New York University professor and business commentator said, “The purpose of an economy is to create a middle class.” By his measure, he claims the U.S. is falling short, not because people stopped working hard, but because the rules that once rewarded steady work no longer apply.
If he’s right, that leaves families heading into 2026 with a more urgent question: If America is no longer designed to reliably support the middle class, how should households plan their money in 2026 and beyond?
This article breaks down what Galloway means, why so many families feel stuck even in a “strong” economy, and what planning differently looks like for households focused on protecting stability rather than chasing growth.
What Scott Galloway Means When He Says America is ‘Failing’ the Middle Class
Galloway’s argument isn’t that the economy has collapsed. It’s that the system no longer consistently produces a broad middle class.
In the same interview, Galloway said, “I think an economy in America exists to create a robust middle class.” By his definition, the question isn’t how fast markets grow, but how many people are pulled into long-term stability.
He argues that this social compact is breaking down. Galloway said that for the first time, a 30-year-old American is no longer doing better than their parents were at the same age.
“That is the social compact breaking down,” he said.
Data helps explain why that shift feels so pronounced. According to analysis from the Federal Reserve Bank of St. Louis, household wealth has become increasingly concentrated among older and higher-income Americans, while younger families hold a much smaller share of total wealth than previous generations did at similar ages.
That dynamic leaves households that rely primarily on income with fewer paths to build long-term financial security.
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Why Families Feel Stuck Even When the Economy Looks Strong
Top-line economic indicators often suggest resilience. Employment remains relatively strong, and wages have risen in recent years. But those gains haven’t translated cleanly into relief for many households.
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According to the Federal Reserve’s Report on the Economic Well-Being of U.S. Households, a majority of adults said rising prices worsened their financial situation, even among those who were employed.
That pressure shows up in everyday expenses.
“I mostly agree with the idea that today’s middle class is burdened by pressures that are structural, rather than a product of irrational personal choices,” said Seann Malloy, founder and managing partner of Malloy Law Offices. “Housing costs, rent hikes, property taxes, insurance and maintenance costs continue to rise above current wage rates.”
That’s why many families feel stuck. Not because they’re mismanaging money, but because rising costs absorb progress before it has a chance to show up.
What Planning Differently Means in 2026
When the environment changes, financial planning has to change with it. For households heading into 2026, steady progress is no longer guaranteed, even with stable income.
Planning differently doesn’t mean lowering standards. It means prioritizing resilience and the ability to absorb setbacks without being forced into major financial decisions.
Malloy said he advises clients to “think defensively,” including minimizing exposure to unpredictable costs and locking in fixed housing or insurance terms where possible.
“Diversifying your income on even a small scale can create breathing room when something changes or slows with a main job,” he said.
That approach favors stability over strategies that only work if nothing goes wrong.
What Middle-Class Stability Realistically Looks Like Now
Stability today doesn’t necessarily mean rapid wealth accumulation. It looks more like fewer forced financial decisions, less reliance on debt when surprises arise and enough margin to adapt when conditions change.
According to a U.S. Treasury analysis on generational well-being, younger adults face higher hurdles to reaching the same financial footing as their parents, which has made defensive planning more important than it once was.
Galloway’s warning isn’t that the middle class is doomed. It’s that the rules have changed. For families planning their finances in 2026 and beyond, recognizing that shift may be the most practical step they can take.
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This article originally appeared on GOBankingRates.com: Why Scott Galloway Says America Is Failing the Middle Class and What Families Should Do in 2026
Source: “AOL Money”
