We know where the middle class "disappeared to" - it moved UP. Why is that bad?

Question

Many economists define the "middle class" as households earning between 2X and 5X the "poverty level" of income- "poverty level" is a term of art most economists agree on and that differs based on family size.

Statistically, 15% of us that a generation ago earned 3-4X the poverty level now earn 6-7X the poverty level. They no longer count as "middle class." Wealth surveys correlate to the income data.

More people, and a greater proportion of us, are rich.

Isn't that the whole idea?

http://www.freerepublic.com/focus/f-news/1229294/posts
http://www.nytimes.com/specials/downsize/21cox.html
http://www.bls.gov/opub/mlr/1988/05/art1full.pdf
http://www.frbsf.org/econrsrch/wklyltr/el97-07.html#winners
http://www.dallasfed.org/fed/annual/1999p/ar95.html
http://money.cnn.com/2005/05/25/pf/record_millionaires/index.htm?cnn=yes
http://money.cnn.com/2005/09/28/news/economy/millionaire_survey/index.htm?cnn=yes
http://money.cnn.com/2006/03/28/news/economy/millionaires/?cnn=yes

Answer 1

The Democrat Party's Goal is to keep everyone down and in "their place"..... On the DEMOCRAT PLANTATION.
They go into a rage when people MOVE UP in life.

(I escaped the Democrat Plantation. I wish everyone would. You have to "want to". It takes sacrifice and hard work for many years.)

ESCAPE THE DEMOCRATS.

Answer 2

With personal bankruptcy at an all-time high, it's mostly the middle class that gets trapped: 92% of the record 1.6 million filers in the year ended June 30 were middle class, according to a Harvard University study. Once again our negative savings rate just got lower-the worst since the great depression. Few have saved adequately for retirement. Healthcare costs are rising at a rate we never would have thought 20 years ago.

Many Americans believe their country remains a land of unbounded opportunity. That perception explains why Americans, much more than Europeans, have tolerated the widening inequality in recent years. It is OK to have ever-greater differences between rich and poor, they seem to believe, as long as their children have a good chance of grasping the brass ring.

Many Americans today look rich but are mortgaged to the hilt, have brand new leased vehicles and little savings for retirement. It's the belief that, we too can be rich (only 5% make more than $100,000) annually and 1.5% make over $250,000) that keeps us voting for tax cuts for the wealthy.

Answer 3

Not all middle class moved UP. A greater group moved down. One thing they don't always put in the mix with their figures is how far does the money go that you made? There is less in savings now than there has been since the depression.

The old middle class for which most people refere to were able to live a basic comfortable life on one income. I'm not talking swimming pools and plasma TV's....but you OWNED what you have and you could replace basic things without going into debt. Now it takes 2 people's income to get by. That's not OWNING it.....it's paying on it. Champaigne tastes on a beer budget. The majority of people own NOTHING. They LOOK like they're living well and try to keep up the IMAGE....but one bad move and it's gone. They are struggling to make payments on what they hope to own. I OWN my small home. I scrape by meeting the demands of taxes, insurance, maintence and basic needs and I'm considered financially in the poverty zone. I would be in the streets if I didn't own my home. Keep increasing the necessities and taxes and I'll be homeless. I'm bordering "elderly" and trying to plan for retirement. From their estimates I should probably plan to put a gun to my head in 5 years because all the well laid plans will go to hades in a basket with a bright red bow attached.

Answer 4

Why is that bad that they re-class what middle class is considered? I don't think its a bad thing, its just a classification, take it with a grain of salt. However the classification has changed since when they set those benchmarks years ago, most households had a head of house, and single income. Now a days, a dual income household is much more common. Its more become a necessity with people having a greater ability to get in debt with all the financial institutions offering their credit. I think it was necessary to re-define middle class because of the dual income scenario.

Answer 5

that's no secret that scare strategies are becoming to be a staple in American politics and media retailers with the intention to grip the regularly occurring public's interest. whether, President Obama, i'd argue subsequently, has no longer been overly egregious. The looming debt ceiling proposes quite a few outcomes which contains the halting of Social protection advantages. mutually as those advantages are granted via the Social protection Act, the would desire to pay off different needs could ultimately grow to be coming near. additionally, with the republican and democtratic stand off in congress, whether the debt ceiling is raised, that's probable to be handed via cutting the fee variety of entitlements, which contains the quantity the federal government can hand out for Social protection.

Answer 6

Look the economy of the USA was not giving by only the rich it was giving by the poor and the middle class. The rich put out their money and the poor and middle class did the work. The poor became middle class and that's what make our country great and strong. Now because of the politics of the rich, it is better for them to take these jobs to poor countries where these companies could do what ever they want with the workers and make all the money and keep it too. And they invented the word "free trade" in order to disguise their evil doing. Now the middle class are becoming poor and with out a job and the companies and government are importing illegal aliens to do the work as cheap as it gets. But what about the Americans with out jobs,, well..... AND what really piss me off is that the American people, well, some of them, (liberals) think it a good idea to bring all of these illegals to the USA. What you think of that,,, they claim is good for our economy and the welfare of the American middle class. Do you think that if we vote for the Republican or Democratic party, all of this is going to change,, I don't think so, both party think the same,, the 'great interest' in America have bought them both. Just listen to them,, defending free trade and amnesty to the 12+ illegals in this country and nothing about securing our borders, because securing our borders and this madness of free trade as is, is unethical., they say.

Answer 7

In your world, maybe. I see seniors dipping into their savings
everyday, just to make ends meet.
The middle class I know, used to be able to save, now, most
of them are living check to check.
The foreclosures in Michigan have gone up 197%. A few months
ago, my local newspaper had 3 complete pages of people
owing back taxes.
If things were that ok, they wouldn't have started PPA or Joe
Kennedy wouldn't be looking for affordable heating oil.
Things are not so good everywhere, 45 million Americans are
without heath insurance for a reason.

Answer 8

Interesting question - do you think that the poverty levels have not increased realistically in previous years.

If you think about it, a call during election time from various politicians is that they have raised so many more people from 'poverty'.

Wish I had more time to delve into this. But thank you for a thought provoking question.

Answer 9

The federal government says a family of four making $18,810 a year is living in poverty.

But how far does $18,810 go in America today?

How do you budget? What do you leave out?

You make the hard choices.

Housing? In America, a family of four making less than $19,000 a year will spend on average $5,274 annually for the most basic of shelter.

$18,810
- 5,274
13,536

Utilities? To keep a family of four warm and secure, the average expense for utilities and public services runs $2,350 a year.

$13,536
- 2,350
11,186

Transportation? A family at the poverty line will spend $4,852 a year to own and maintain a used car, and fill it with the gas and oil needed to go to work, to day care, to the store, wherever.

$11,186
- 4,852
6,334

Food? Even with public assistance such as food stamps, families making less than $19,000 will spend $4,815 a year for food at home and away.

$6,334
- 4,815
1,519

Health Care? Even if an employer contributes part of the costs of health insurance, a family of four at the poverty line would still pay on average $793 a year for health and medical expenses. The cost of not having health insurance, however, could be devastating.

$1,519
- 793
726

Child Care? The costs in a metropolitan-area child care center for two children five and under can reach over $13,000 a year. Even with child care subsidies, low income families with two small children will spend on average $2,030 a year on child care annually.

$726
- 2,030
- 1,304

So now you’re $1,304 over budget, and you still don’t have everything you need.

What do you leave out?

Toiletries, School Supplies, Shoes, Clothes, Holiday Gifts, Education, Life Insurance, Furnishings, Recreation, Cleaning Supplies, Entertainment, Birthday Gifts?

These are the decisions that people are forced to make every day when they live in the state of poverty.

Visit http://www.povertyusa.org to learn more.

Source of Statistics:

Rent, utilities, transportation, food, health care: Consumer Expenditures Survey, U.S. Department of Labor, Bureau of Labor Statistics, February 2004; Child care: Expenditures on Children by Families, United States Department of Agriculture, Center for Nutrition Policy and Promotion, April 2004 Poverty threshold: U.S. Census Bureau, Current Population Survey 2004 Annual Social and Economic Supplement

Answer 10

Upper mobility is supposed to work at all levels, upper middle to rich, middle into upper, lower middle into middle and poor into middle. Without a strong middle class democracy can not exist, all you are left with is the wealthy dictating over the poor; a form of fascism.

Answer 11

And what makes you think we moved "Up".
The average American family exists pretty much week to week or month to month. Earning the dollars and saving them are very different. The US has seen it's lowest level in household savings since the depression (source USA Today). This means that even though we are earning more it is taking everything we have just to survive.