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Where Do I Fall in the American Economic Class System? The answer is not that simple.
US News ^ | 10/30/2019 | By Susannah Snider

Posted on 10/30/2019 1:15:40 PM PDT by SeekAndFind

Understanding where you fall in the American economic class system isn't as simple as pulling out a calculator or looking at a pay stub.

Myriad forces shape individuals' economic class and their views on where they rank alongside other Americans.

When asked how they identify their social class, 62% of Americans said they belonged to the upper-middle or middle classes, according to a 2017 survey from Gallup. In determining their social class, people often don't just think about income, experts say, but about other factors, including education, location and family history.

Larger economic trends may also impact how people view their class rank.

On one hand, experts note, the American middle class is shrinking, with individuals moving toward the higher- and lower-income brackets. "There's a loss of jobs in the middle and growth at the top and bottom," says Robert J. Gordon, professor of economics at Northwestern University. "In that sense, the middle class has been hollowed out."

Much of today's political rhetoric focuses on the challenges facing the middle class. And although household incomes have risen over the past 45 years or so, they've actually fallen since 2000 and haven't fully recovered from the Great Recession, says Richard Fry, senior researcher for Pew Research. "As of 2015, most American households had not recovered to where they were back in 1998," he says. That short-term decline may lead to feelings of stagnation and frustration, he says. Plus, Fry notes, while most American households are doing better than they were 45 years ago, "the gains have not been equal," he says. "Everybody’s better off, but it’s particularly the well-off who are better off."

On the other hand, experts say today's economy is strong. The unemployment rate was 3.5% in September 2019, and employers are hiring. "Household incomes are supported now in a way they weren't before, both by (the) decline of unemployment and people coming back into employment," Gordon says.

So what does this mean in terms of where you fall in the American economic class system? Here's what to know.

Breaking Down Economic Class by Income

One objective way some researchers divide individuals into economic classes is by looking at their income. From that data, they split earners into different classes and often into five groups: poor, lower-middle class, middle class, upper-middle class and wealthy. The income cutoffs that divide those income ranges can change from year to year and between methodologies, but here's a sense of where they stand, according to recent data.

What Is a Middle-Class Income?

Pew Research defines middle-income Americans as those whose annual household income is two-thirds to double the national median. For a family of three, that ranges from $42,000 to $126,000 in 2014 dollars.

The lowest-income group earned $31,000 or less for a family of three while the lower-middle group earned between $31,000 and $42,000 in 2014, according to Pew Research. At the most affluent levels, upper-middle-income, three-person households earned between $126,000 and $188,000, with the highest-income households topping $188,000 in 2014 earnings.

If those numbers have your head spinning, here's a breakdown of income and class for a family of three, based on Pew Research's data:

Income group Income
Lowest income $31,000 or less
Lower-middle income $31,000 - $42,000
Middle-income $42,000 - $126,000
Upper-middle income $126,000 - $188,000
Higher-income $188,000 or more

Pew has developed a calculator to determine income class, into which you can plug relevant financial, geographic and household information for a take on where you rank.

According to research from Stephen Rose, a nonresident fellow in the Income and Benefits Policy Center at the Urban Institute, the range for a middle-class family of three was an income of $50,000 to $100,000 in 2014, he says. That same three-person family with an income between $0 and $30,000 per year was considered poor or near-poor. A family earning between $30,000 and $50,000 was considered lower-middle class.

For high earners, a three-person family needed an income between $100,000 and $350,000 to be considered upper-middle class, Rose says. Those who earn more than $350,000 are rich. "In my mind, there's a big divide today between the upper-middle class and the middle class," he says.

Here's a breakdown on income class for 2014 incomes for a family a three, according to Rose's analysis:

Income group Income
Poor or near-poor $29,999 or less
Lower-middle class $30,000 - $49,999
Middle class $50,000 - $99,999
Upper-middle class $100,000 - $349,999
Rich $350,000 and up

Am I Middle Class?


Whether you're considered middle class depends on more than just your income or the balance of your bank account. Where you fall in the American economic class system may not stay consistent throughout your life, or even from year to year, experts say.

"Many people are holding onto their middle-class status precariously," Gordon says. For example, he says, a middle-class breadwinner who's lost a solid job in manufacturing may fall from the middle-income class to the low-income class. At the same time, his family may continue to own several cars, a boat on a nearby lake – all the trappings of middle-class life – while bringing home the paycheck of a low-income or poor family.

On the flip side, a law student may earn a modest graduate student stipend of $20,000 per year, currently placing her in the low-income class, but her educational attainment and future earnings will most likely catapult her income and class placement to a higher level down the road. "People really need to understand that whatever's happening (with their class rank) today is part of a trajectory, part of their life," Rose says.

Class identity extends beyond what your W-2 income form claims you earn, experts say.

A factor that individuals may use to determine class is educational attainment, with people who have postsecondary degrees linking their class placement to those degrees. "There's a big class divide based on education and also on marriage," Gordon says. "What you have is an upper class based on couples where the husband and wife went to college and can provide intangible benefits to their children such as a better vocabulary."

Your location also has a major impact on how you feel you stack up class-wise. "Making $120,000 per year is a lot different in small-town Indiana than it is in New York City," says Frank Newport, senior scientist at Gallup.

So where do you place in the American economic class system? You can look at income, education, marital status, location, family history, gut instinct and a host of other factors to find out where you fall. But the bottom line is this: Finding the answer is more complex than just looking at a number.



TOPICS: Business/Economy; Society
KEYWORDS: class; economicclass
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1 posted on 10/30/2019 1:15:40 PM PDT by SeekAndFind
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To: SeekAndFind
Should be classified as follows:
2 posted on 10/30/2019 1:18:14 PM PDT by DannyTN
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To: SeekAndFind

Can ya afford groceries this week? If yes, you’re good. For this week.


3 posted on 10/30/2019 1:25:40 PM PDT by rktman ( #My2ndAmend! ----- Enlisted in the Navy in '67 to protect folks rights to strip my rights. WTH?)
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To: DannyTN

Brilliant!


4 posted on 10/30/2019 1:28:26 PM PDT by Huskrrrr
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To: SeekAndFind

My wifes side of the family are all firefighters in a large city.

Her cousin retired recently at age 56. His pension is $148k per year.

Every time I go to her family reunions I have to bite my tongue. All they do is complain about how bad their jobs are and how poorly they.

So poorly paid the majority her uncles were all ff, her cousins as well as her nephews.

Nepotism at it’s finest.

Makes me sick to my stomach how they complain and they all vote lib democrat


5 posted on 10/30/2019 1:30:02 PM PDT by setter
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To: SeekAndFind

Left out the most important factor...overall WEALTH!

Income is a measure...but overall not even the most important measure of where one “fits” into a financial society...unfortunately!

In fact, income may not allone even be a factor that can help you change your level /place or position in a monetary society....”your income may never be high enough to change your place”...that’s why, of course, money and wealth is not everything in life nor is it the fruit that brings you true happiness.


6 posted on 10/30/2019 1:30:12 PM PDT by ldish (Have had enough...you??????)
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To: SeekAndFind

Your location also has a major impact on how you feel you stack up class-wise. “Making $120,000 per year is a lot different in small-town Indiana than it is in New York City,” says Frank Newport, senior scientist at Gallup.

_________________________________________

This. This is almost as important as income in determining where you are in the income class structures here in America.

A $500,000 home in California could be had for $150,000 in Normal America.


7 posted on 10/30/2019 1:31:54 PM PDT by Responsibility2nd
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To: SeekAndFind; Lazmataz

The answer IS that simple: I’m comfortable; I’m happy, because I make other people happy and I help others that truly need my help.

Also, after many, many days and hours and restarts and delays, I FINALLY made it to Diamond City. I let Piper know Laz was doing well.

Next question.


8 posted on 10/30/2019 1:33:28 PM PDT by AF_Blue (My decision-making skills closely resemble those of a squirrel when crossing a road)
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To: SeekAndFind

Sure it’s simple.

I. DON’T. CARE.


9 posted on 10/30/2019 1:39:13 PM PDT by metmom ( ...fixing our eyes on Jesus, the Author and Perfecter of our faith...)
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To: SeekAndFind

I like the older Chris Rock routine.

Shaq is rich. The guy who signs Shaq’s paycheck is wealthy.


10 posted on 10/30/2019 1:48:47 PM PDT by skinndogNN
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To: SeekAndFind

$350k is “rich”?? Not after taxes.


11 posted on 10/30/2019 1:53:53 PM PDT by CodeToad (Arm Up! They Are!)
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To: ldish
Left out the most important factor...overall WEALTH!

Here is an article from earlier this month that focuses on wealth.

-PJ

12 posted on 10/30/2019 1:54:00 PM PDT by Political Junkie Too (Freedom of the press is the People's right to publish, not CNN's right to the 1st question.)
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To: CodeToad

It depends on where you are. A household income $350K in Manhattan,2 adults and 2 kids,would probably make you middle class. In most parts of Georgia (or Iowa) it would make you damn rich.


13 posted on 10/30/2019 2:06:43 PM PDT by Gay State Conservative (A joke: Brennan,Comey and Lynch walk into a Barr...)
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To: ldish

I noticed that. Very strange!


14 posted on 10/30/2019 2:09:09 PM PDT by carcraft (Pray for our Country)
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To: SeekAndFind
I have a warm dry place to sleep, clean water to drink, food for tomorrow, clothes and my sweetie.

We may not have a bunch of money but we are rich.

15 posted on 10/30/2019 2:10:39 PM PDT by Harmless Teddy Bear (A hero is a hero no matter what medal they give him. Likewise a schmuck is still a schmuck.)
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To: Gay State Conservative

In Colorado, it’s a nice living but far from rich.


16 posted on 10/30/2019 2:27:21 PM PDT by CodeToad (Arm Up! They Are!)
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To: SeekAndFind
Yup - I'm middle class. And white. And straight. And Christian.

I am so sorry.....

/sarc

17 posted on 10/30/2019 2:59:28 PM PDT by Psalm 73 ("I will now proceed to entangle the entire area".)
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To: CodeToad
There are many Left Coast beautiful people who like Colorado just as many East Coast beautiful people like Martha's Vineyard. Those areas of Colorado where they hang out surely ain't cheap.And there are surely parts of "Greater Denver" that aren't cheap.

But how about the rest of the state?

18 posted on 10/30/2019 3:00:41 PM PDT by Gay State Conservative (A joke: Brennan,Comey and Lynch walk into a Barr...)
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To: Gay State Conservative

Not cheap anywhere, really. So many people love the area that even the remote plains and mountains areas are also on the higher side.


19 posted on 10/30/2019 3:02:42 PM PDT by CodeToad (Arm Up! They Are!)
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To: CodeToad

In the metro area where I live a 4 bedroom house averages $500-$600K. How about Greater Denver?


20 posted on 10/30/2019 3:05:15 PM PDT by Gay State Conservative (A joke: Brennan,Comey and Lynch walk into a Barr...)
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