If I would ask the question, is the middle class better off now than in 1985, what stat best answers this?

Question

I'm trying to understand which statistics and which approaches are best to understand 'how well off is the middle class in America'. For example, maybe it should be average net worth of middle class... but what if the middle class actual was smaller now than then? What is best way to look at this?

Answer 1

1. Adjust data to equal each other (inflation adjustment) ... Then compair unemployment, income, and consumer spending.

Answer 2

Perhaps by looking at a basket of goods. Despite inflation, the cost of most consumer electronics has decreased. Example: the computer in 1985 had, at best, a 10 MHz processor and cost upwards of $2,000. A VCR cost around $800, and the TVs still got UHF and had small screens.

You can make an argument from this standpoint because the category of goods that increased the most had the largest relative price decrease when compared over the 20-year period.

Answer 3

It depends on where you live. But the middle class in America is depleting drastically.
The rich are getting richer and the 80's middle class were much better off back in the 80's than they are today.
That is because the cost of living has gone way up but raises haven't.
Look at www.dol.gov

Answer 4

That's a good question. Myself I would think of it in terms of actual quality of living. I would say our quality of living has gone down drastically. Sure, we have more gadgets- but we work longer hours, have a longer commute, and have less vacation days. Think of that, too.

Answer 5

you should consider what the value of money was then to be able to compare against todays middle class