What is Middle Class?

In today’s society, there is much debate about who, exactly, is considered middle class. While it’s true that each region in the United States has its own unique economic landscape and what defines middle-class status can vary from place to place, there are some benchmarks that can be used to define the parameters of middle-class life.

What are the Common Characteristics?

The first step to understanding what is considered middle class is to look at the common characteristics associated with it. Typically, a middle-class household consists of two earners in which each makes roughly the same amount of money. The Household income is usually two to three times the federal poverty level. This is usually somewhere around twice the federal poverty level. In addition, a middle-class family will likely have health insurance provided by the employer, will be homeowners and have some type of savings and investment accounts.

The Decline of the Middle Class

In recent years, there has been a significant decline in the size of the middle class due to stagnating wage growth and rising costs of living. The wage gap between the lowest and highest earners has widened and fewer people are joining the ranks of the middle class. To make matters worse, people are struggling to keep up with the increasing costs of living and are increasingly relying on debt to cover basic expenses. This has resulted in an increase in bankruptcies and a decrease in homeownership rates.

Conclusion

Overall, it can be difficult to determine who, exactly, is considered middle class. However, by looking at the common characteristics of the middle class, such as two earners making similar incomes, having health insurance through their employers, and owning a home, we can get an understanding of what is generally accepted as middle-class status. Despite the decline in the size of the middle class, it is still possible for individuals to join or stay within the middle class as long as they have access to higher-paying job opportunities, are able to save and invest, and are able to keep their costs of living low.