When you read a report about how the “middle class has shrunk” or that the president gave a speech vowing to “strengthen the middle class,” what does it mean?
Given how much attention is paid to the “middle class,” you may be surprised to learn that there isn’t a hard official definition of who gets to be in it. The vague parameters may help to explain why people aren’t great at deciding whether they themselves are middle class or not.
For example, while we know that wealth inequality is growing, and therefore presumably those in the middle class are showing signs of falling down the economic ladder (or for a rare few, up), the number of Americans who report being in the middle class has remained largely unchanged for years – until recently. What is perhaps more surprising and even a little bit galling is that some of the wealthiest Americans in the country consistently self-report their status as “middle class.”
An analysis published by the Pew Charitable Trust took a look at this question. Pew defined middle class households as those earning 67%-200% of a state’s median income.
Take a look at the chart below. Pew computed their range using median income numbers published by the US Census Bureau’s 2013 American Community Survey. The ACS median numbers are listed in the leftmost column. Pew shows the median figure opposite the range, which it breaks out further by state, to show how much middle-class earners make in each state. The states are listed in descending order based on median income.
Middle Class but Economically Insecure
Middle-classness is very often not as much about actual earnings, but about how people actually feel. And as it turns out, people’s feelings (in terms of their identifying with middle class status) are remarkably broad. Many wealthy as well as poor people can be found to simultaneously identify as middle class, even when their incomes fall far outside of the middle range. Earnings and assests are thus, for many of us, only part of the definition of class. That is to say, there is an important “psychological” component to class that interacts in a dynamic way with the economic dimensions.
Consequently, you might look at this chart and think that the “lower bound” middle class income category doesn’t really feel like middle class at all. That’s because the term “middle” here is being used in its most literal sense. Middle income, in other words, does not always signify middle class. So if you find yourself located in the middle range, but find that this doesn’t feel like middle class to you, it might have something to do with the skyrocketing cost of living, which is being driven up principally by housing costs, and the fact that the majority of people aren’t seeing large boosts to their salaries. Lost jobs, stagnating income, and general feelings of insecurity are all as important as economic criteria in determining how a given individual feels about their class status.
Interestingly now, because there is such an extreme concentration of earnings at the top end of the scale, the “middle” number is starting to show signs of trending higher over time. If the trend persists, more and more people fall outside this range. It’s no wonder that a Pew survey found that between the years 2000 and 2013, the number of people considered “middle class” fell in every single state. People are falling out of the middle class at an alarming rate! These numbers should serve as a stark reminder of just how little most Americans actually have. The take-away here is that middle class ain’t what it used to be.
More than this, there isn’t one middle class, rather, there are “many” middle classes. What all of them require, according to experts, are feelings of income security. Without income security then, theoretically and practically speaking, there can be no middle class.
[Note: using the “median,” rather than the “mean” measure of income, generally produces a statistical result that reflects a more accurate picture of income/earnings, because data are less likely to be skewed by abnormalities in the extreme ends].
Median Household Income and the US Economy
Since 1980, U.S. gross domestic product (GDP) per capita has increased 67%, while median household income has only increased by 15%. An economic recession will normally cause household incomes to decrease, often by as much as 10%.
Median household income is a politically sensitive indicator. Voters can be critical of their government if they perceive that their cost of living is rising faster than their income. Figure 1 shows how American incomes have changed since 1970. The last recession was the early 2000s recession and was started with the bursting of the dot-com bubble. It affected most advanced economies including the European Union, Japan and the United States.
The current crisis began with the bursting of the U.S. housing bubble, which caused a problem in the dangerously exposed sub prime-mortgage market. This in turn has triggered a global financial crisis. In constant price, 2011 American median household income is 1.13% lower than what it was in 1989. This corresponds to a 0.05% annual decrease over a 22-year period. In the mean time, GDP per capita has increased by 33.8% or 1.33% annually.
The Politics of Poverty
Now, if we were to think about these findings in light of poverty issues, the picture becomes even more grim. The federal guidelines for what we consider the “poverty line” set an income threshold to determine who is poor enough to qualify for benefits. That threshold, as it turns out, is painfully set at a very low level.
So for example, according to the 2015 guidelines, anything above $11,770 and, as far as the government is concerned is an indicatior that you aren’t really poor. Unfortunately, this delusion has real world consequences. Everything from healthcare subsidies to food stamps to help with housing is based on this rigid guideline, which has demonstrated that it is difficult to change for reasons that are largely political. This means that many people who are struggling can’t get access to the help they need.
Discussion Questions
How do you feel about your individual or family status, based on what is reflected on the income chart?
Do you feel anxiety about your earnings ability and your ability to secure a comfortable lifestyle?
How do the psychological dimensions of class interact with the economic dimensions of class in your own life? Do the numbers say one thing, and your feelings another? In other words, do you sometimes feel conflicted about your class status?
This module was extremely helpful in clarifying my understanding of the middle class. It also helped me put into perspective how much of a bubble I lived in growing up. I grew up in Howard County, one of the wealthiest counties in Maryland. Because of this, I had an extremely skewed idea of what defined the middle class. Embarrassingly enough, it was not until my senior year of high school that I realized 60,000 dollars a year was not the salary of a poor person. Now, my senior year of college, it was not until now that I received a more concrete parameter of what the middle class is. But, it is interesting that my old understanding of the middle class would actually be in support of raising the poverty line. If I thought that 60,000 dollars a year was poor, then this would imply anything lower than that was abysmal. For me, it has always been important to recognize my privileges and then try to help others who are not as fortunate. So, I have always really been in favor of social programs – but at least now, after taking this course and reading this module, I have a better understanding of who needs these programs, the distribution of wealth in America, and the different arguments about them.
One other thing I wanted to comment on is the chart, “The Real Median Income by Race and Hispanic Origin in 2011.” In looking at this article, it is important to consider how women contribute to the differing levels of median income between races. Since 1967, there has been an increase of women within the workforce. The “modern marriage” is defined as a heterosexual marriage where both the man and woman in the relationship earn money for the family (but the woman is still likely to take on a “second shift” where she still has to do all of the housework, and take care of the children). Obviously, this would contribute to an increase in median incomes. But, what is particularly interesting is how the wage gap plays into this. “Women make 83% of what a man makes,” is a common phrase when people talk about the wage gap. However, this does not take into account the intersectionality of race and gender. In actuality, this percentage is much lower for minority groups. All minority groups except Asian women. Asian people can be found at the top of the chart for median incomes likely due to the fact that women making the most out of the wage gap. So, with the rise of Asian women in the workforce, who make 87% of what a White man makes, combined with Asian men making 117% as much as White men, it is not surprising to see the Asian people are earning the highest household median incomes. If Asian men are making the most money in this country, why is “the White male” population used the most in illustrating the wage gap? Even in my analysis, I had to use a Eurocentric framework because it is harder to find data that presents these statistics differently. This could possibly be due to White feminism and how White feminists have historically defined the plight of White women as the plight of ALL women.
I believe Starbucks should have better prepared its employees in ways to request people to have a discussion concerning race. I also thoroughly agree with Bonilla-Silva in regard to anyone of color believing that once Barack Obama became POTUS there would no longer be issues of black/white. I witnessed the disrespect Obama faced while he is the POTUS did not make a difference to people who still actively practice racism. It was a viable thought from Starbuck’s executives, but it lacked the elements to make it successful…..which leads to the next question………..what was Starbucks goal in their attempt to engage people in this conversation? After all……..coffee is their business.
Although the US is a capitalist country, I do not think that income is enough to define an individual’s class. It would be the case if income and the purchasing value of money were static. Some people’s income may have increased while for others it may be the opposite. Besides, even if there would be an increase of income, it would just be compensatory to the rise of the cost of living. Consequently, someone who has approximately the same income for the past ten years can no longer be considered as part of the same class; income may remain unchanged but its value does not.
Additionally, for a person who was born here or has resided in the US for a certain amount of years, it quite easy to locate oneself in a “class”. However, when talking about the relationship between income and class, it becomes difficult for me to position myself. For I have been lived in this country for less than four years, having decided to return to school is like that I have restarted from scratch a new life. This is the reason why even if sometimes I think about the difference that the numbers make, I tend to prioritize the psychological dimensions over the economic dimensions of class. In other words, I do not feel conflicted about my class status here.
The class that you belong to is simply a way for society to justify you and your family, its a group for them to put you in to easier judge you. Someone who is lower class would be characterized as “poor” all simply based on how much they make. It is our societies beliefs that the people that are in the upper classes are much smarter than the rest and the money that they earned to be considered upper class was only earned because they worked hard for it. Anyone that is middle class or lower doesn’t work as hard and is not smart enough which explains why they don’t earn as much money. This goes back to the rest post about “The American Dream” and how the upper class feels entitled and 100% responsible for their earnings and prestige. The social stratus is well deserved simply based on their income. That is the sad misconception of our society today and that is the root of the social war that we are currently in. That’s where the separation starts, when you divide people based on income for the simple reason of creating more differences among a society. I feel as though most people that I have come across would claim to be in the middle class range. This might have a lot to do with the misconceptions others have about being in the lower class or upper class. The middle class is the “safe” class, not a lot of stigma comes from being in the middle class. Living in a place like New York all these social classes are all mixed in one working environment. You could be the secretary with a lower income working for your boss with the median income who is working for the upper income CEO, and you come into contact and interact with these people on a daily basis. When you take the subway in the morning you’re among so many different kinds of people all incomes ranging from lower to upper class. That’s what makes living in a city like New York so difficult at times because there are so many different kinds of people with different daily struggles that make it difficult to be empathetic to any other kind of struggle different from yours because its so out of your reach.
According to the chart, my family would be around the median, and my parents make sure my brother and I feel secure so that we don’t have to worry about it. When I was younger, my mom would tell me how she and my dad worked hard so that I wouldn’t have to worry about money problems (while also saying that it’s unlike some other kids in unfortunate circumstances where their families are financially unstable). So yes, I do feel secure, but only for now. I know that once I become independent, it can be a different story. Even the thought of what may happen in the future scares me now. Because of the overwhelming number of people that are falling out of the middle class, I can’t help but feel this big pressure on me, pushing me to make sure I don’t fall under. Just dealing with the stress of what my financial stability in the future will be like now is enough to not be content with the feeling of security I currently have. Who knows how many other people feel this way.
According to this chart my family does not fall in the “middle class”. In fact, according to this chart my median household income exceeds that of the upper middle class bound in the state of New York. Telling me that I live in a family that is in the lower upper class is absurd. This title based simply on a household income that the makers of these charts do not understand does not make my family feel any better. It does not make us feel as though we are amongst the rich of society as we are not. I am not upper class. Wage earners who are earning this lower bound of about $38,000 do not feel as though they are in the middle class–whatever that even means. I feel as though the middle class is simply a label given to those who are not rich in order to be some sort of psychological opiate. Where these persons feel better about their situation. This lower bound in the state of New York equates to a person technically making only $18/hour in a 40 hour work week. The numbers may reflect that I am in the “upper class” but it is extremely inconsistent with my situation. I am definitely in a terrible situation and I am truly blessed, but to put me above the middle class doesn’t even make sense. I live in a household of wage earners who live paycheck to paycheck. The amount of bills and responsibilities (school for 3 children, insurance, car payments, etc.) in my house leads to my parents having no savings. As much as they try to save , these funds get exhausted so quickly as the cost of living is so high. As I said, I am fortunate but I think the middle class needs to be redefined or not defined at all. It is much more than a number. A household income does not make hardships suddenly disappear. The middle class is a psychological tactic by those earning much more to keep those less than them feeling as though they are in a decent situation though the reality is that it is not so simply. This income does not mean my parents do not live paycheck to paycheck. In a more real example, I have been denied financial aid throughout my schooling which leads to trying to pay out of pocket or take out loans. The very idea of being in debt puts someone in a position where they lack wealth. My parents have always told me they work hard so that I do not have to work as hard when I get older-but i have a feeling that I will end up in the very same situation. I am not the upper class.
The income chart provided gives you a general idea of what you need to be making in order to be defined as middle class, but states are vast socioeconomically diverse places with varied costs of living. The chart does not account for disparities in income between urban and rural locations, or more specifically declining rust belt municipalities, global cities, and their surrounding suburbs.
Taking this into consideration, New York City has a median household income of $50,711 according to 2010-2012 estimates from the U.S. Census Bureau. That is below the $57,369 statewide median household income indicated by the chart. When even realizing that a large proportion of state residents, almost half, live in the city; this likely indicates that many more New York City residents are worse off on average than other residents of the state as a whole. The reason for this increased pressure on New York City residents is the city’s substantially higher cost of living. Similar disparities are likely in other urban locations and surrounding suburbs as well, while rural dollars go a longer way. For the most expensive city in the state to have a lower average household income than the state, we can see the potential long term of effects of continued wage stagnation on the nation.
Being middle class in a global city does not afford one enough to achieve certain indicators of class status in the United States. Some of these indicators or commodities include ownership of housing and an automobile (though NYC is a special case in this regard). $38,246 (the low end of the middle class spectrum) would make it impossible to afford a one-bedroom apartment at market rate in New York City, where the average rent in 2015 was $3,100 a month and rising. Rents are 3.3 percent higher than last year, while wages adjusted for inflation have declined. The informal economy has become an important component of livelihood in the most impoverished communities while others here have taken to non-traditional means to survive. These non-traditional tactics, rarely employed by the middle class outside global cities, include roommate living or more dramatically, overpopulated units with multiple families or unrelated adults.
All in all, while being middle class in the United States is on the decline, it just doesn’t cut it in some locations. The pressure on the middle class is much more extreme in certain locations. What will become of future generations when the current one is struggling to make ends?
What middle class? Living in today’s society I feel that the middle class is almost non-existent or overrated at least, or maybe it should be called something else because to be depicted as the class between rich and poor, to me is a joke. This can be seen simply in the way the chart “What you need to earn to be in the middle class” is broken down into subcategories of middle classes. Is there a lower versus a higher lower class? Personally I feel that the psychological dimensions of class does conflict with the economic dimensions of class in my personal life because according the chart my family would fall just below the upper middle class margin, but by the circumstances in which we are forced to live in who would’ve known. I live in a one family home in Brooklyn on the border of East NY and Brownsville, with either “affordable housing units” or NYCHA projects in a 4 block radius in each direction. The conflict mostly occurs when you make “too much” money to reap some of the welfare benefits that everyone should be entitled to (i.e. low cost health insurance), but don’t earn enough money to afford those services you need, so a lot of times I feel stuck. Like Financial Aid for example, according to them my family contribution is way larger than what we can pay for me to attend school because all they see is our family income and not the circumstances in which we are living. They don’t see that my mother is a single parent, with 3 children, the mortgage to pay, bills, light, gas , car payments, health insurance etc, and by the end of her check she is left with not nearly enough to pay more than half my college tuition, let alone raise 3 children. From an economical stand point we are median middle class, bordering upper middle class. Psychologically we are no wealthier than the people living 4 blocks away.
My mother is a prime example of a person that distances herself from the “lower” class and swears her hard work has moved the family above poverty and into the middle class, all the while earning $12/hr. She would be that person that sees an old lady collecting cans for recycling and say “Oh that is so sad, I would never look for scraps like that”. Funny, because I remember when she just arrived in America, she was being paid half a penny for each button she sewed into a shirt, so collecting cans at five cents a pop does not seem so bad after all. She also prides herself in not applying for food stamps during family conversations (bragging congregations, really), but omits that her daughter’s college education is supported through federal aid. Her sense of middle class identity stems from comparing herself with less fortunate friends and family members but she fails look at those that are outside of her community.
My family falls within the median of the middle class range. My family has always been fairly steady, even with 3 kids in college. My parents insisted on getting my sisters and me through college without debt as much as possible. That factored into my accepting a scholarship to Hunter, instead of attending a college away from the city. Debt is a scary prospect, especially in this economy. Therefore, I must confess I am anxious when I think about my future earning ability. The job market looks like tough competition and I still have more schooling to finish. Nevertheless, I am certain I may secure a good job and lifestyle when the time comes. Class is a tricky aspect. A lower class is usually seen as negative, and individuals may try to distance themselves away from an impoverished image. A ‘wealthy’ image is important to people in this fast-paced superficial society. However, that just hides the fact that these individuals may be struggling financially. In turn, families may have low-end household income, but insist on projecting a mirage surrounded by fancy utilities.
According to the diagram my family is some place in the middle class. On the other hand, it appears to be “middle class” changes a great deal over brief times of time. What was viewed as working class 10 years prior is closer to lower class today. I consider my family/household closer to lower class, then middle, we sometimes struggle to make ends meet, while we all are working part time to help chip in. Things are complicated majority of the times; however it makes us helpful and considerate. Its not like we are getting any younger, and we will eventually have to pay our own bills. I believe that poverty has turned out to be a lot of “socially unsatisfactory” thing, rather than something that can benefit from outside assistance. The line set in the middle of neediness and each different class is so low it is essentially living in the city. Instead of trying to help those considered poor and living in need. Poverty is a growing issue in our society because our generations are not consistent with being interested in education, and then the world we live in today, people are very selfish, and filled with hostility. This is a world wide conflict within individuals, people don’t understand second chances, and they live without grief.
Honesty, I do feel unease when it comes to the income aptitude because we human beings always feel the urge of greed. We are never satisfied with what we have, so we start to work hard and hard to make the ends meet. Before, 10 years ago 60,000 dollars a year was concerned “middle class”, but since then the middle class as started to disintegrate. Poverty has become even great due to increase of cost, family expansion, and job mini-wage. For example, parents who make 60,000 would be concerned middle class, but if you add 3 children a house and car payment and 25% tax deduction that family would now fall in the lower class. Regardless of the hard work, the middle class puts in the always get the short end of the stick higher taxes and higher disadvantage.
Personally, I do feel anxiety when it comes to the earnings ability because we, as human beings feel like we’re never making enough money and we have to work harder to make end’s meet. It’s like we feel if we don’t make enough money, then we’re not living our lives the right way and it become very difficult when it comes to paying for stuff. For example: house rent, bills, food, mortgage, car insurance,etc… Although it is true that we’re committing ourselves to work for the rest of our lives, we just have to make sure that we have the right method of working which is having strong knowledge that is based on having educational background. Without education, we will not earn much because there is always something missing when working. Normally, we feel as if we’re unsafe in our own living because we feel like we’re not going to live long because of the earnings that are being made and there is always something extra that everybody has to pay which means more money comes out of our pockets and less money for us. In my opinion, if someone in this world feels comfortable with their lifestyle, it is because they grew up with a wealthy family that will take care of them no matter what the situation is when it has to do with the economic status. No matter where people work at, the earnings that they make and receive will never be satisfying because there is always something wrong going on when securing your living. Everybody has anxiety when it comes to your life and the salary that you’re making and the impact that it not only has on you but to everyone else in the society. People are identified as low-class, middle-class, and upper-class for a reason because it all depends on how much people are making and based on that, they will be put into one of those categories. We will always be judged based on the income you or your family makes, therefore, there is no way of winning. We’re looked as, we either have enough money to maintain a great life or we don’t have a lot of money and have a horrible, poor life. It’s not fair, but that’s how society will always look at us.
I often feel anxiety about my earnings ability and my ability to secure a comfortable lifestyle. This is mostly because my mom is a single mom and is forced to rent an apartment. Renting an apartment, you throw your money away every single month. Since money is tight for her, I pay for my own things. I started working when I was 16 and never stopped. In order to secure a comfortable lifestyle, I need to get a good job. To get a good job, I need a college degree. To get a college degree, I have to go to college. To go to college, I have to work. Sometimes I wonder if I should be working more so that I can pay for more of my education up front instead of putting myself into as much debt as the stereotypical college student does. Then I realize that 30 hours a week of work along with being a full time student is enough on my plate.
When I was young, I always had in my head that my parents were “rich”. We had 2 houses, always had brand new cars, went on vacations every year, etc. In the eyes of a 5 year old, my family was the epitome of rich! It was not until I got older that I realized that my family was nowhere near rich; in fact we were barely making the cut of being considered middle class. My dad even jokes by saying that “We will always be middle class—the middle of broke and flat broke!” lol
However based on the income chart my family’s status is closer to the median income then the lower or higher. This in my mind is crazy because the range is so broad for New Jersey. Its saddening for me, personally, because when I see the range, I can instantly think of the areas in Jersey that fit into each of the 3 categories. There would definitely be more people on the lower end of the spectrum than the higher. It shouldn’t be like that, but unfortunately it is.
My family definitely falls in the lower class. My mom is a single mom and has seven children. My mom has a college degree, and yet can’t seem to find work. She is currently selling furniture at the local furniture store. It is interesting to see what they classify as the middle class. It is also interesting how people who are in the middle class, according to data, often don’t identify themselves as middle class. I wonder if that’s because there is a negative connotation with the term?
My family falls in the median household income, interesting but not entirely surprising. My dad was always a blue collar worker with experience but a lack of education. My mom is the same way, both of my parents choosing to work rather than attend college. While they do work long, hard hours, I still did not expect to land in the Middle Class Upper Bound category. I, along with my parents, constantly monitor and put away money for the future or when we need it. Fiscal responsibility and independence was always stressed by my parents. They want to make sure that when I’m older and have a family, that I will be able to comfortably live and care for my family.
I do sometimes feel conflicted about my class status because of the pressure that society and peers force in social aspect. Economic class extends past just buying goods and services: it can determine who we decide to interact with in which way. For example, a person could fit in extremely well with another group of friend but never gets an opportunity because they are looked down upon for not having the same material objects. I feel like regardless of the work ethic, the lower end of the middle class is always at a disadvantage, often unable to move classes.
Judging by the chart my family is somewhere in the middle class. However, it seem “middle class” changes a lot over short periods of time. What was considered middle class 10 years ago is closer to lower class today. Middle class has to be broken up into upper, middle and lower categories. Someone can be middle class and have a very large income, while someone who is struggling to make payments can be considered middle class. With middle class changing all the time and having three categories of it makes it very difficult to accurately tell where a person is in the middle class.
What I find interesting regarding middle class, is that a lot of people are ashamed of where in the middle class they belong. Just because a household receives a great income, it does necessarily defines them at high or low middle class. I believe that wealth over income is what defines you. For example, according to the chart, my family is on the higher end of the chart. Both my parents own independent business and all that seems great. There was a time, a couple years back that the economy took a toll and many business owners suffer. My family in a matter of months drop range in that chart. What kept us standing was the investments they had, but as far for income, it was lower than ever. What Im trying to say is that if is just on income that defines middle class, it will always fluctuate, because income can change rather quickly.
I wish my family income was the upper part of the middle class because being on the lower end is difficult. Especially living with a single parent raising 2 kids in college. Yes I do feel anxiety about my earning ability because life is a lot harder now than it used to be more when adults were our age. Adults now are having hard times trying to find jobs, so me being a new adult is a bit to worry about.
I think that poverty has become too much of “socially unacceptable” thing, instead of something that can be helped. The line set between poverty and every other class is so low it is basically living on the streets. Rather than making an effort to help those considered poor and in poverty people just disregard them and blame them for ruining their lives and not trying to better themselves rather than acknowledging that there could have been any number of unfortunate circumstances that put them in that situation. Poverty is a growing issue in our society because what used to be considered middle class is now lower class and as group of income/people continues to grow middle class will get smaller and smaller and less attainable.
According to the income chart my family household would be placed in the median household. That’s not a lot of money when theres three people in one household. Having two kids in college can turn the family household into a middle class lower bound with all these college fees. But still living in a median household income does not mean were living largely. We’re living pretty stable and have affordable things.
Over the years “middle class” has become less of an economic standing and more as a defense. If you ask anyone where they stand or how much money they have, they will almost always claim middle class. This is due to the fact that generally everybody loves the middle class. The really rich use this excuse so they will not be judged or come off as snobby pigs, while the really poor say this so they will not be judged as lesser than the society. In actuality it shouldn’t matter who comes from what economic background however we cause this to be a bigger insecurity than it actually is. Still, I’ve had everyone of my friends (all of who come from different economic backgrounds) tell me they are middle class. Unfortunately, i give in to the insecurities and tell them I’m middle class as well.
From the income chart this would put my family into the upper middle class range but at times it feels like the lower middle class . there are a lot of factors that these charts can’t possible factor in especially when its a bigger family. As still a dependent i wouldn’t put me into the middle class range however after college a job will still be hard to find but it would be better than without an upper level education.I personally feel like with my ability i will be able to secure a good job so i could continue to have a great lifestyle.