The middle class makes up a large segment of the population and has a significant impact on the economy and society. But who exactly are middle class people and what are they like? Here is an in-depth look at the characteristics, lifestyle, values, and challenges of the middle class.
Who is considered middle class?
There are a few ways to define who falls into the middle class:
- Income-based: Households earning between 67% and 200% of the median income are considered middle class. This equals around $40,000 to $120,000 annually for a family of three based on recent figures.
- Self-identification: Surveys show around half of Americans identify themselves as middle class regardless of income.
- Lifestyle and security: Those who have achieved a basic level of economic security but still rely on their labor income are considered middle class.
The most common definitions focus on income levels that provide economic stability but still require budgeting to maintain that lifestyle.
What is the lifestyle of the middle class?
The middle class lifestyle is often considered comfortable but not luxurious. Some typical features include:
- Own a home, often a single-family house in the suburbs.
- Own at least one car per adult, often used rather than brand new.
- Can afford occasional vacations, entertainment, and dining out.
- Financial security for necessities but little extra savings.
- Employer-sponsored health insurance and retirement plans.
- Children participate in activities like sports and music lessons.
However, this lifestyle often requires carefully balancing expenses. Unexpected costs can make it difficult to maintain. Many in the middle class need to keep working at decent paying jobs to fund this lifestyle.
What values are common among the middle class?
Some values commonly held by middle class individuals include:
- Achievement: There is a strong desire to work hard, get ahead, and provide a better life for one’s family.
- Education: Advanced education such as college is seen as key to advancement.
- Family: Raising children and being involved in their education and activities is a priority.
- Financial security: Comfortable retirement and children’s college education are important goals.
- Homeownership: Owning a home in a good school district is seen as part of belonging to the middle class.
- Jobs: White collar, office and professional jobs are more valued over blue collar jobs.
Middle class life often centers around family, careers, and achieving financial stability and a comfortable lifestyle. Status symbols like cars, homes, and other consumer goods are important for keeping up appearances.
What are the political views of the middle class?
The middle class has a diverse range of political views that don’t align cleanly with any particular party. However, there are some general tendencies:
- Favor government policies that support a middle class lifestyle, such as tax benefits for homeownership and retirement savings plans.
- Support investments in education, infrastructure, and public safety.
- Tend to be more moderate on social issues such as abortion and gay rights.
- Value fiscal responsibility but also some economic supports from government.
- Want accountability and transparency from political leaders.
Many in the middle class favor a mixed approach – capitalist economy with regulatory oversight along with select social programs. They want affordable options for healthcare, higher education, homeownership and retirement security.
What are the main financial challenges for the middle class?
The middle class faces some key financial pressures:
- Cost of housing: Real estate and rental prices have increased faster than wages in many areas.
- Healthcare: Costs keep rising while employer-provided insurance covers less.
- Childcare: Often necessary for two working parents but expensive.
- College tuition: Continues to increase much faster than inflation.
- Retirement: Saving enough for retirement is difficult with other expenses.
- Job security: Corporate restructuring and business closures can cause job and income loss.
These pressures make it harder for many middle class families to actually achieve or maintain the lifestyle they aspire to. Debt from credit cards, student loans and mortgages is common.
How is technology changing the middle class?
Technology is having both positive and negative impacts:
- Access to information, social media, online shopping makes some things more convenient.
- Higher paying tech jobs didn’t exist before, creating new middle class careers.
- But technology also disrupts careers. Jobs can be outsourced or replaced with automation.
- Gig economy platforms like Uber offer flexible income but less stability.
- AI and robots may eliminate many office and professional jobs in the future.
Overall, technology provides opportunities but also makes middle class careers and incomes less dependable. Continual learning to keep tech skills current is needed.
Conclusion
The middle class faces declining stability and a squeeze between stagnant incomes and the rising costs of housing, healthcare, childcare, and education. Values of hard work, achievement, and financial security are threatened. To restore opportunity and prosperity, measures are needed to control costs in core expense areas while also updating skills and adapting to economic shifts. A strong, confident middle class is a key foundation for society.