So I saw this article a few days ago, prompted by some of the backlash against Obama's 529 college savings plan, about who the "middle class" is in the United States.
Here is the particularly interesting paragraph:
So coming to this definition is tricky, especially as it becomes such a political important demographic and talking point. In this country, folks of generally every income bracket, even at the $150,000+ income level, often refer to themselves as "middle class", in part because there is some social distastefulness of referring to oneself as rich, and in part, i suspect, because we tend to socialize around people of similar profession and class level.If all you have is what is your peers have, you don't feel especially wealthy. You feel middle. Or something.
The Median household income in the US is around $52,000, so using that, a benchmark of around the 30-100K seems to make sense...but that, of course, isn't adjusted for location. But perhaps it shouldn't be?
I'll use myself as an example here. I live in one of the most expensive metros in all of the US, near Washington DC. My wife and I combine to make about 90K a year, which by all metrics, would mean that we're doing fairly well, even with a child. However, because housing, transportation and other essentials are so expensive in DC, our lifestyle doesn't resemble what most would consider middle class. We live in a small, one bedroom apartment in a bad neighborhood about an hour via Metro from downtown DC. We had to resort to the secondary, "unofficial" market to find child care. We don't go out. We don't own a car, and aren't able to save very much money each month. I lived far better in my first job out of college, when my household made half as much money (but i lived in way cheaper New Orleans).
On the other hand, I don't HAVE to live here. My wife and I are both educated white collar professionals who could move somewhere else without too much trouble, as are many people near our age and income level where we are. I'd have to change industries, but my skills are transferable enough that I could move to say, Cleveland in a month, make 60K as a household instead, and then buy a house. My circumstances are totally different. I can't think of too many professions that would allow somebody to make 50-110K in high cost metro that wouldn't be transferable to a lower cost metro. A much poorer person wouldn't be able to move.
Others have suggested that it isn't about raw income, but a "state of mind", which could vary from profession to profession, metro to metro, and depends on your ability to reach certain financial goals. Others might say it has nothing to do with income at all, but is about status or profession. Others may something entirely different.
What do you think? How do you define the middle class, and who is in it?
Here is the particularly interesting paragraph:
Vox.com said:
So coming to this definition is tricky, especially as it becomes such a political important demographic and talking point. In this country, folks of generally every income bracket, even at the $150,000+ income level, often refer to themselves as "middle class", in part because there is some social distastefulness of referring to oneself as rich, and in part, i suspect, because we tend to socialize around people of similar profession and class level.If all you have is what is your peers have, you don't feel especially wealthy. You feel middle. Or something.
The Median household income in the US is around $52,000, so using that, a benchmark of around the 30-100K seems to make sense...but that, of course, isn't adjusted for location. But perhaps it shouldn't be?
I'll use myself as an example here. I live in one of the most expensive metros in all of the US, near Washington DC. My wife and I combine to make about 90K a year, which by all metrics, would mean that we're doing fairly well, even with a child. However, because housing, transportation and other essentials are so expensive in DC, our lifestyle doesn't resemble what most would consider middle class. We live in a small, one bedroom apartment in a bad neighborhood about an hour via Metro from downtown DC. We had to resort to the secondary, "unofficial" market to find child care. We don't go out. We don't own a car, and aren't able to save very much money each month. I lived far better in my first job out of college, when my household made half as much money (but i lived in way cheaper New Orleans).
On the other hand, I don't HAVE to live here. My wife and I are both educated white collar professionals who could move somewhere else without too much trouble, as are many people near our age and income level where we are. I'd have to change industries, but my skills are transferable enough that I could move to say, Cleveland in a month, make 60K as a household instead, and then buy a house. My circumstances are totally different. I can't think of too many professions that would allow somebody to make 50-110K in high cost metro that wouldn't be transferable to a lower cost metro. A much poorer person wouldn't be able to move.
Others have suggested that it isn't about raw income, but a "state of mind", which could vary from profession to profession, metro to metro, and depends on your ability to reach certain financial goals. Others might say it has nothing to do with income at all, but is about status or profession. Others may something entirely different.
What do you think? How do you define the middle class, and who is in it?
