LISEP Ludwig Institute for Shared Economic Prosperity

The MQL expands on LISEP’s True Living Cost (TLC), incorporating essential expenses beyond mere survival, encompassing factors crucial to well-being, growth, and upward mobility.

This includes not only necessities like housing, food, and healthcare but also education, transportation, technology and more.

By tracking costs associated with this “basket of American dream essentials,” the MQL provides a more holistic view of what it means for individuals to have a minimal quality of life in America.

For a more in-depth explanation of the Minimal Quality of Life Index, please reference LISEP’s MQL white paper.

Minimal Quality of Life

The Minimal Quality of Life Index (MQL) offers a more comprehensive measure of the cost of living than traditional metrics, revealing the resources needed to secure a foothold on the bottom rung of the American dream and climb it over time.

Additional Resources:

The MQL Index tracks the cost of:

Housing
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Healthcare
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Food
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Transportation
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Raising a Family

Technology
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Clothing
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Basic Leisure

MQL by Family Size

2023

Select any point on the chart to see the data for that expense category.

The financial demands of raising children are making it increasingly difficult to achieve MQL. The cost of raising children, which includes setting aside funds for higher education, has grown by 107% since 2001. In 2023, a typical four-person family with two children needed to allocate over $30,000 on child-related expenses, a third more than their housing expenses.

Change in Median Worker’s Spending Power

Change Since 2001, by Family Size

Select any point on the chart to see the data for that family size.

The MQL underscores the growing difficulty working- and middle-class families face in achieving a minimally decent standard of living. Since 2001, affordability has declined for most family types, with single parents of three children experiencing the sharpest drop (7.4% less affordability in 2023 vs. 2001). While households with children have been most affected, all households have felt the squeeze.

Change in True Weekly Earnings Adjusted by the Increase in MQL vs Headline Inflation

Change in True Weekly Earnings Adjusted

by the Increase in MQL vs Headline Inflation

Change Since 2001, by Income Level

Select any point on the chart to see the data for that year.

First quartile refers to the exact amount at the 25th percentile of the distribution, so 25% of the population makes less than this amount, and 75% makes more. Third quartile refers to the point at which 75% of the population makes less and the remaining 25% makes more.

Adjusting True Weekly Earnings (TWE), LISEP’s measure of the median weekly earnings of all members of the workforce, for the CPI suggests that real wages increased 11.3% since 2001. In fact, TWE adjusted for the MQL reveals a 4.0% decrease in spending power over the same period. The MQL-adjusted TWE shows a 3.9% increase in spending power since 2001 for the 25th percentile of workers — over 5 times less than the 20.5% increase suggested when adjusting for CPI. Spending power at the 75th percentile of TWE has fallen by 2% since 2001 when adjusted by MQL.

Change in the Cost of Essentials

Change Since 2001, by Expense Category

Select any point on the chart to see the data for that expense category.

CPI understates the impact of inflation on low- and middle-income Americans. While CPI tracks overall price changes, it doesn't fully capture the disproportionate burden LMI families experience. Rising costs in essential areas like housing, healthcare, and education significantly outpace wage growth, leaving millions struggling to attain even a minimal quality of life. While some aspects of the MQL have become more affordable, they often represent parts of life that don't contribute as directly to upward mobility.

Minimal Quality of Life

The true cost of economic well-being

From 2001 to 2023, the cost of basic economic security doubled, rising 99.5% — 38% faster than the Consumer Price Index rose over the same period.

Minimal Quality of Life

The true cost of economic well-being

From 2001 to 2023, the cost of basic economic security doubled, rising 99.5% — 38% faster than the Consumer Price Index rose over the same period.

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