The middle class is defined as the layer in the socio-economic pyramid that is situated between the working and the upper classes. It comprises individuals with a moderate position in the evaluation of economic and social status as compared to the other members of the society. However, it is not easy to make a concrete decision regarding who is a middle-class earner. Here are some important variables to know to set the context of what it means to be the middle class in the United States of America.
Income Range
The income ratio is among the most frequently utilized standards to define middle-class status. Most economists classify middle-income earners as families that earn a percentage of seventy percent to two hundred percent of median income. Currently, the overall average income per household in the United States stands at approximately 70,000 US dollars. Employing this benchmark, income levels for middle class end up ranging from $47000 for the lower end to $ 140000 for the higher end. But, a wide range indicates differences in living costs in different states of the country. This means that what can be classified as middle-class income in a particular rural town will be very different from what will be considered middle-class income in any of the country’s large cities along the coast.
Lifestyle Factors
Other factors that define the middle class include lifestyle choices one can make. Education level is one, many middle-class jobs that exist require one to have some college education or training. Professional or business personnel are often described as middle class while those with low-skill or technical jobs are described as working class based on their collar color. Homeownership has also been in the past used as a symbol of middle-class income and standards. These features show that there is economic stability and an absence of financial well-being but at the same time, there is money. In summary, the middle-class lifestyle is financially secure but still, the major source of income for consumer expenditure is wages and salaries rather than fixed income from investments.
Financial Security
They too have lower budgets as compared to the middle class and they do not have any savings like the middle-class people who are financially secure. Similar to the previous question, they have some discretionary income that is left after basic human needs such as shelter, food, transport, and medical expenses are met each month. But they still require employment income and they do not possess that amount of money that would allow them to live off interests, dividends, and investment income in the manner of upper-class people. While they may have a strong financial foundation where they save for necessary expenses in the future, such as retirement or college tuition fees for their children, they are also required to budget and cover their day-to-day expenses.
Core Values
In addition to mere demographic characteristics, the middle class is also a cultural concept that embodies material and moral values associated with the American dream. Social mobility forward using such things as hard work and education has always been a key source of pride. Purchasing a home, having a financial buffer, funding schooling for their children, being able to afford health care, and having a good nest egg for the future are all goals of the middle class. Taxes, wages, real estate, and consumer prices are considered sensitive political issues that affect this group most. As such, it is always the middle class that gets targeted in most policy directions together with being the core target client in most marketing strategies.
The fact that the majority of people wish to be associated with the middle class is because it is believed to comprise the core of the society’s political arena. However, due to the shift in the economy and the enhanced income level difference, there has been a blurring between the working class and what can be termed as the middle class. Such macro factors have strained aspects such as house prices, health, educational fees, and wages. Consequently, the definition of the modern middle class still changes with the existing economy. While the definition of who is considered a victim might not be as clear in the past, the stigma associated with the term could have been clearer in the past than today. The gap is also observed when comparing different realms including urban, suburban, and rural areas as well as generations. However, 70% of Americans continue to actively pursue the stability, improved fortune, and moral principles inherent in the middle-class American Dream.
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