The middle class is a description given to individuals and households who typically fall between the working class and the upper class within a socio-economic hierarchy. In Western cultures, persons in the middle class tend to have a higher proportion of college degrees than those in the working class, have more income available for consumption, and may own property. Those in the middle class often are employed as professionals, managers, and civil servants.
Key Takeaways
- The middle class is a socio-economic strata that falls in between the working class and the upper class.
- The middle class constitutes about half of the U.S. population, but it has shrunk over nearly half a century.
- Those in the middle class have enough disposable income to afford minor luxuries like vacations or restaurants but also rely on borrowing for big-ticket items like homes and cars.
Understanding the Term "Middle Class"
The word "middle" may be misleadingin thatit suggests that those in the middle class have earnings within the middle of the population's income distribution, which may not be the case. Middle class families tend to own their own home (although with a mortgage), own a car (although with a loan or lease), send their kids to college (although with student loans or scholarships), are saving for retirement, and have enough disposable savings to afford certain luxuries like dining out and vacations.
Karl Marx referred to the middle class as part of the bourgeoisie (i.e. the "petit bourgeoisie:, or small business owners) when he described the way in which capitalism operates, in opposition to the working class, which he termed the "proletariat". The term "middle class" itself has shifted in meaning over time, having once referred to persons who had the means to rival nobles to the contemporary meaning that is more akin to the upper end of the working class.
Recently, there has been talk of a "disappearing middle class" in modern society, as income inequality has tended to "hollow out the middle" and largely benefit the top (e.g. the top 1%). At the same time, the term has shifted to include upper-middle and lower-middle classes to account for the increased stratification.
50%
The number of Americans who belong to the middle class as of 2021, according to the Pew Research Center.
What Constitutes the Middle Class
The birth of the middle class, in some respects, has been linked to federal funding and support through programs such as the G.I. Bill, which offered funds for education and the start of businesses created by veterans who were discharged. The combination of incentives and salary increases helped elevate working class citizens into the newly forming middle class.
The income parameters that define the middle class continue to change and not solely based on the rate of inflation. Regional disparities in income and the cost of living mean that salary-based measures of the middle class can vary greatly. Different income barometers describe the middle class as having income from $50,000 to $150,000 or, in some instances, $42,000 to $125,000. Other measures of middle class set the upper-income mark at $250,000.
A 20$ Minimum Wage
If wages increased at the same rate as labor productivity since 1968, the hourly minimum wage would now be over $21, according to the Center for Economic and Policy Research.
Characteristics of the Middle Class
The concept of middle-class society may include a presumption of earning a salary that supports owning a resident in a suburban or comparable neighborhood in rural or urban settings, along with discretionary income that allows for access to entertainment and other flexible expenses such as travel or dining out. While it is assumed that middle-class households generate sufficient income for retirement savings along with standard expenses, an increasing segment of this portion of the American population is also living paycheck to paycheck.
An ideal commonly held among the middle class is that it is possible to increase their income to higher economic strata through career advancement and salary upgrades. The pace of such upward mobility aspirations, however, has changed over the decades with the costs of goods and services, in some cases outpacing the growth of salaries.
What Income Is Considered Middle Class?
The Pew Research Center defines "middle class" as an income that ranges between two-thirds and double the median income. The exact boundaries of a middle-class income vary by family size and location, due to the geographical differences in cost of living. That works out to an annual income between $52,000 and $156,000 for a three-person household, as of 2020.
How Large Is the Middle Class?
According to a 2022 analysis by the Pew Research Center, about 50% of Americans were in the middle class as of 2021. That represents a sharp decline from 61% in 1971.
How Much Should the Average Middle-Class Person Save for Retirement?
As a rule of thumb, many financial advisors recommend saving at least three times your annual income by the end of your thirties. Since the median income for a 35-year-old is $63,000, that means saving around $189,000.
The Bottom Line
The middle class is the economic stratum between the working class and the wealthy. In the United States, the middle class occupies about half of the population, mainly consisting of people who work in white-collar professions, small businesses, or skilled trades. The middle class has declined since the 1970s, due to the loss of highly-paid manufacturing jobs and increasing economic inequality.
FAQs
In Western cultures, persons in the middle class tend to have a higher proportion of college degrees than those in the working class, have more income available for consumption, and may own property. Those in the middle class often are employed as professionals, managers, and civil servants.
What are the characteristics of the middle class? ›
The Bottom Line
There is no official financial standard for what constitutes middle class. For most it's more about a standard of living—including owning a home, being able to afford to pay for a college education for your kids, and having enough disposable income to take a family vacation.
What is the true definition of middle class? ›
a social group that consists of well-educated people, such as doctors, lawyers, and teachers, who have good jobs and are not poor, but are not very rich: The upper middle class tend to go into business or the professions, becoming, for example, lawyers, doctors, or accountants. Compare. lower class old-fashioned.
How do you explain middle class? ›
The term has historically been associated with modernity, capitalism and political debate. Common definitions for the middle class range from the middle fifth of individuals on a nation's income ladder, to everyone but the poorest and wealthiest 20%.
What describes a middle class person? ›
The middle class or middle classes are the people in a society who are not working class or upper class. Business people, managers, doctors, lawyers, and teachers are usually regarded as middle class.
What characterizes the middle class? ›
The middle class is a socio-economic strata that falls in between the working class and the upper class. Those in the middle class have enough disposable income to afford minor luxuries like vacations or restaurants but also rely on borrowing for big-ticket items like homes and cars.
What are the key values of the middle class? ›
Middle-class values refer to the set of beliefs, attitudes, and behaviors that are associated with the middle class in society. These values often include hard work, education, financial stability, social respectability, and adherence to societal norms.
Who is considered middle class? ›
According to the latest Census Bureau data from 2022, the median household income in the U.S. was $74,580. Based on that number, if you earn between $50,000 and $150,000 a year, you qualify as middle class.
What defines middle upper class? ›
One common way to classify the upper middle class is based on income. The upper middle class is often defined as the top 15% to 20% of earners. According to the Social Security Administration's 2022 wage data, the average upper-middle-class income was roughly between $80,000 and $100,000.
What does middle meaning class mean? ›
: a class occupying a position between the upper class and the lower class. especially : a fluid heterogeneous socioeconomic grouping composed principally of business and professional people, bureaucrats, and some farmers and skilled workers sharing common social characteristics and values.
“The middle class can be defined as anyone who can afford a reasonable standard of living, including owning a home, going on yearly or bi-yearly vacations, and being able to support future investments like part of a college education for their children.
What does a middle class person look like? ›
The middle class is generally perceived as those who fall between the socio-economic hierarchy of the working class and upper class. Those that have attained a college degree, are homeowners, able to send their children to college and have discretionary income consider themselves members of the middle class.
What is middle class role? ›
The middle class, often seen as the embodiment of democracy and development, is known for its role in advocating for social change, economic growth, and political stability. This class is characterized by a moderate level of income, a high level of education, and a professional occupation.
What are 3 characteristics of the middle class? ›
“The middle class is typically characterized by having a stable income and some level of financial security. They tend to value education, homeownership and health insurance. The upper-middle class is distinguished by having a higher level of income and wealth compared to the middle class.
What word describes the middle class? ›
hoi polloi Middle America middle order middle-income group ordinary people plain folks proletariat working class.
How do you use middle class in a sentence? ›
He is from a middle class background and is a lecturer in education. Families are predominantly middle to upper middle class. Rather, they tended to be people of the middle class : upwardly mobile and determined to stay that way. The children are from middle class, well-educated families.
What is the chief characteristic of the middle class? ›
Common characteristics of a middle-class family include a stable income, decent health insurance coverage, and a strong commitment to their children's education. They may also have modest savings, own a home, and travel occasionally.
What identifies as middle class? ›
The Pew Research Center defines the middle class as households that earn between two-thirds and double the median U.S. household income, which was $65,000 in 2021, according to the U.S. Census Bureau.21 Using Pew's yardstick, middle income is made up of people who make between $43,350 and $130,000.7 This is a ...
What are the characteristics of a middle income economy? ›
Lower middle-income economies are those with a GNI per capita between $1,136 and $4,465; upper middle-income economies are those with a GNI per capita between $4,466 and $13,845; high-income economies are those with a GNI per capita of $13,846 or more, according to the World Bank Country and Lending Groups.
What are the characteristics of the middle class according to Weber? ›
The middle classes are located between the “positively” and “negatively” privileged propertied and commercial classes—for example, small property owners, craftsmen, self-employed farmers, public officials, professionals, and credentialed and highly skilled workers (Weber 1978, pp. 302–307).
