Recently, the “Seven Steps to Bankruptcy for the Middle Class” has become a hot term on the Chinese internet. On June 7th, this topic once again sparked discussions and surged to the top of Weibo’s trending list.
On June 7th, the headline article’s author and prominent Weibo influencer, “Internet Analyst Yu Bin,” posted a message stating, “We are witnessing history again as the bankruptcy speed of middle-class families is accelerating in unprecedented ways. The well-known three steps to bankruptcy: taking out loans to buy a house, the wife not working, the children attending international schools, are no longer sufficient. The bankruptcy tactics have now escalated from three steps to seven steps.”
The seven steps to middle-class bankruptcy outlined by the blogger include: blind entrepreneurship, high mortgage loans, full-time spouse taking care of children, blind pressure for children’s extracurricular classes, blind investments, neglecting one’s own health, and indulging in excessive consumerism.
This topic struck a chord with netizens, sparking heated discussions online.
Netizens expressed, “The concept of the ‘Seven Steps to Bankruptcy for Middle-Class Families’ is a recent hot topic on the internet, referring to seven high-risk behaviors that could lead to financial collapse in middle-class households. It is considered an upgraded version from the traditional ‘Three Steps to Bankruptcy’ (high mortgage loans, full-time spouse, international schools), becoming a ‘financial minefield’ that contemporary middle-class families need to beware of.”
“A risk checklist circulating on social media describes seven categories of behaviors believed to significantly reduce the wealth of middle-class families, potentially leading to a return to poverty. This expansion from the earlier ‘three steps’ reflects the financial anxieties of specific groups amidst economic fluctuations.”
“This evolution is not a strict economic report but rather reflects the sharp contradictions perceived by specific groups between stagnant incomes, rising expenses, and weak risk-reward capacities.”
“When money is hard to come by, the middle-class families have only one tactic: tighten the belt. The recent hype around the ‘Seven Steps to Bankruptcy for the Middle Class’ is quite alarming, implying that just three missteps could be dangerous.”
“At the core of these seven steps lies ‘high debt, single income, blind optimism,’ essentially mimicking a lifestyle beyond one’s means using high leverage, resulting in extremely fragile family finances that collapse once income falters.”
Some netizens also commented, “The main point is missed here. The crux is that in recent years, earning money has become more challenging, and the environment for making a living is not as favorable as before. People used to love spending money in the past, so why aren’t they going bankrupt now?” “Understood, the economy is declining, can’t make money,” “The essence is middle-aged unemployment,” “Entering middle age and returning to poverty, the fundamental reason can be summed up in one sentence: no increase in income, soaring expenses, and poor risk-reward capacity.”
“In recent years, I have seen friends around me experiencing property price slashes, stock market plunges, major companies ‘graduating’ employees, restaurants closing down due to losses, and such cases are not uncommon.”