Middle Class
The middle class is a the group of people who fall into the middle income range in a country.
- About 50% of american are considered middle class in 1998
- Falling from roughly 61% in 1971 (according to the Pew Research Center)
There are multiple definitions for the "middle class"
- Mathematically this refers to the group of people who are in the middle % range of income
- This might be the middle 20% (middle quintile) of incomes
- Could also be broader (middle 40%)
- Even though these people fall in the middle mathematically, they may not feel like they are in the middle class (see below)
- Anecdotally the middle class refers to those who are not rich and not poor, but secure and comfortable
- The middle class does not live lavishly, but does not generally worry about basic finances
- Owns a home, cars, can take a few vacations a year, etc.
- Good job security, schools for kids, retirement savings, healthcare, etc.
- Overall few financial-related worries
- This definition of middle class is related to The American Dream
- Optimistic about their future
- Assume that their kids will have a better future than they did
2018 Concerns
- There has been a growing sentiment that the US middle class is shrinking
- Jobs are less secure (automation, technology)
- Savings are lower
- Cost of living have increased
- Cost of healthcare have increased
- Costs of education have increased
- Debt levels have increased
- Real wages have stagnated
- Although average incomes seem to be increasing, the Tyranny of Averages suggests this data might be misleading (the typical person is actually not better off - averages are being skewed by the super wealthy