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Though the American middle class does not have a definitive definition, contemporary social scientists have put forward several ostensibly congruent theories on it. Depending on the class model used, the middle class constitutes anywhere from 25% to 75% of households. One of the first major studies of the middle class in America was '' White Collar: The American Middle Classes'', published in 1951 by sociologist C. Wright Mills. Later sociologists such as Dennis Gilbert of
Hamilton College Hamilton College is a private liberal arts college in Clinton, Oneida County, New York. It was founded as Hamilton-Oneida Academy in 1793 and was chartered as Hamilton College in 1812 in honor of inaugural trustee Alexander Hamilton, following ...
commonly divide the middle class into two sub-groups. Constituting roughly 15% to 20% of households is the upper or professional middle class consisting of highly educated, salaried professionals and managers. Constituting roughly one third of households is the
lower middle class In developed nations around the world, the lower middle class is a subdivision of the greater middle class. Universally, the term refers to the group of middle class households or individuals who have not attained the status of the upper middle ...
consisting mostly of semi-professionals, skilled craftsmen and lower-level management. Middle-class persons commonly have a comfortable standard of living, significant economic security, considerable work autonomy and rely on their expertise to sustain themselves. Members of the middle class belong to diverse groups which overlap with each other. Overall, middle-class persons, especially upper-middle-class individuals, are characterized by conceptualizing, creating and consulting. Thus, college education is one of the main indicators of middle-class status. Largely attributed to the nature of middle-class occupations, middle class values tend to emphasize independence, adherence to intrinsic standards, valuing innovation and respecting non-conformity. The middle class is more
politically Politics (from , ) is the set of activities that are associated with making decisions in groups, or other forms of power relations among individuals, such as the distribution of resources or status. The branch of social science that studies ...
active than other demographics.
Income Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. Fo ...
varies considerably, from near the national median to well in excess of US$100,000. However,
household income Household income is a measure of the combined incomes of all people sharing a particular household or place of residence. It includes every form of income, e.g., salaries and wages, retirement income, near cash government transfers like food stamp ...
figures do not always reflect class status and standard of living as they are largely influenced by the number of
income earner Income earner refers to an individual who through work, investments or a combination of both derives income, which has a fixed and very fixed value of his/her income (sometimes, called Vulkary Workers). The vast majority of income earners derive mo ...
s and fail to recognize household size. It is therefore possible for a large, dual-earner, lower middle class household to out-earn a small, one-earner, upper middle class household. The middle classes are very influential as they encompass the majority of voters, writers, teachers, journalists and editors.John Steele Gordon
"10 Moments That Made American Business", ''American Heritage'', February/March 2007.
Most societal trends in the U.S. originate within the middle classes.


History

Scholars have a variety of technical measures of who is middle-class. By contrast public opinion has a variety of implicit measures. The definitions seem to stretch quite a great deal depending on the political cause that is being invoked or defended, as one commentator noted:


Sub-divisions

The middle class by one definition consists of an
upper middle class In sociology, the upper middle class is the social group constituted by higher status members of the middle class. This is in contrast to the term ''lower middle class'', which is used for the group at the opposite end of the middle-class strat ...
, made up of professionals distinguished by exceptionally high educational attainment as well as high economic security; and a
lower middle class In developed nations around the world, the lower middle class is a subdivision of the greater middle class. Universally, the term refers to the group of middle class households or individuals who have not attained the status of the upper middle ...
, consisting of semi-professionals. While the groups overlap, differences between those at the center of both groups are considerable. The lower middle class has lower educational attainment, considerably less workplace autonomy, and lower incomes than the upper middle class. With the emergence of a two-tier labor market, the economic benefits and life chances of upper middle class professionals have grown considerably compared to those of the lower middle class. The lower middle class needs two income earners in order to sustain a comfortable standard of living, while many upper middle class households can maintain a similar standard of living with just one income earner.


Professional/managerial middle class

The "professional class", also called the "
upper middle class In sociology, the upper middle class is the social group constituted by higher status members of the middle class. This is in contrast to the term ''lower middle class'', which is used for the group at the opposite end of the middle-class strat ...
," consists mostly of highly educated white collar salaried professionals, whose work is largely self-directed. In 2005, these household incomes commonly exceed $100,000 per year. Class members typically hold graduate degrees, with educational attainment serving as the main distinguishing feature of this class. These professionals typically conceptualize, create, consult, and supervise. As a result, upper middle class employees enjoy great autonomy in the work place and are more satisfied with their careers than non-professional middle class individuals. In terms of financial wealth income, the professional middle class fits in the top third, but seldom reach the top 5% of American society. According to sociologists such as Dennis Gilbert, James M. Henslin, Joseph Hickey, and William Thompson, the upper middle class constitutes 15% of the population. Values and mannerisms are difficult to pinpoint for a group encompassing millions of persons. Naturally, any large group of people will feature social diversity to some extent. However, some generalizations can be made using education and income as class defining criteria. William Thompson and Joseph Hickey noted that upper middle class individuals have a more direct and confident manner of speech. In her 1989 publication ''Effects of Social Class and Interactive Setting on Maternal Speech'', Erica Hoff-Ginsberg found that among her surveyed subjects, "upper-middle class mothers talked more per unit of time and sustained longer interactions with children". She also found that the speech of upper middle-class mothers differs "in its functional, discourse, and lexico-syntactic properties", from those in the working class. Upper middle-class manners tend to require individuals to engage in conversational discourse with rather distant associates and to abstain from sharing excessive personal information. This contradicts working-class speech patterns, which often include frequent mentions of one's personal life. Further research also suggests that working-class parents emphasize conformity, traditional
gender role A gender role, also known as a sex role, is a social role encompassing a range of behaviors and attitudes that are generally considered acceptable, appropriate, or desirable for a person based on that person's sex. Gender roles are usually cent ...
s, and the adherence to external standards in their children, such as being neat and clean and " elievingin strict leadership". This contrasted with professional-class households, where gender roles were more egalitarian and loosely defined. Upper middle class children were largely taught to adhere to internal standards, with
curiosity Curiosity (from Latin '' cūriōsitās'', from ''cūriōsus'' "careful, diligent, curious", akin to ''cura'' "care") is a quality related to inquisitive thinking such as exploration, investigation, and learning, evident by observation in humans ...
,
individuality An individual is that which exists as a distinct entity. Individuality (or self-hood) is the state or quality of being an individual; particularly (in the case of humans) of being a person unique from other people and possessing one's own need ...
,
self-direction __NOTOC__ Self-governance, self-government, or self-rule is the ability of a person or group to exercise all necessary functions of regulation without intervention from an external authority. It may refer to personal conduct or to any form of ...
, and openness to new ideas being emphasized. While a recent Gallup survey showed
mass affluent In marketing and financial services, mass affluent and emerging affluent are the high end of the mass market, or individuals with US$100,000 to US$1,000,000 of liquid financial assets plus an annual household income over US$75,000. Mass affluent ...
households to be conservative on economic issues while liberal on social issues, the upper middle class seems to be relatively politically polarized. In the 2006 mid-term elections both Democrats and Republicans received over 40% of the vote from those with advanced degrees and those in households with six figure incomes. While households with incomes exceeding $100,000 tend to favor Republicans slightly, they are also the only income demographic where
Ralph Nader Ralph Nader (; born February 27, 1934) is an American political activist, author, lecturer, and attorney noted for his involvement in consumer protection, environmentalism, and government reform causes. The son of Lebanese immigrants to the U ...
won more than 1% of the vote. Among those with graduate degrees, a smaller group than those with six figure incomes, the majority tends to vote Democratic with roughly 1% having voted for Nader in 2004.


Lower middle class

The lower middle class is the 2nd most populous according to both Gilbert's as well as Thompson & Hickey's models, constituting roughly one third of the population, the same percentage as the working class. However, according to Henslin, who also divides the middle class into two sub-groups, the lower middle class is the most populous, constituting 34% of the population. In all three class models the lower middle class is said to consist of "semi-professionals" and lower level white collar employees. An adaptation by sociologists Brian K. William, Stacy C. Sawyer, and Carl M. Wahlstrom of Dennis Gilbert's class model gave the following description of the lower middle class: Taking into account the percentages provided in the six-class model by Gilbert, as well as the model of Thompson and Hickey, one can apply U.S. Census Bureau statistics regarding
income Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. Fo ...
. According to these class models the lower middle class is located roughly between the 52nd and 84th percentile of society. In terms of personal income distribution in 2005, that would mean gross annual personal incomes from about $32,500 to $60,000. As 42% of all households, and the majority of those in the top 40%, had two
income earner Income earner refers to an individual who through work, investments or a combination of both derives income, which has a fixed and very fixed value of his/her income (sometimes, called Vulkary Workers). The vast majority of income earners derive mo ...
s, household income figures would be significantly higher, ranging from roughly $50,000 to $100,000 in 2005. In terms of
educational attainment Educational attainment is a term commonly used by statisticians to refer to the highest degree of education an individual has completed as defined by the US Census Bureau Glossary. See also *Academic achievement *Academic degree *Bachelor's degree ...
, 27% of persons had a
Bachelor's degree or higher Bachelor's degree or higher is a commonly used term by the United States Census Bureau and other U.S. government agencies on the federal as well as state and local level. The term describes the portion of the population that has either a bachelo ...
.


Working class majority

Seen from a sociological perspective based on class-cleavages, the majority of Americans can be described as members of the
working class The working class (or labouring class) comprises those engaged in manual-labour occupations or industrial work, who are remunerated via waged or salaried contracts. Working-class occupations (see also " Designation of workers by collar colo ...
. The use of the term "working class" is applicable if the position of individuals, households and families in relation to the production of goods and services is the main determinant of social class. Class distinctions are seen in the distribution of individuals within society whose influence and importance differ. The nature of a person's work and the associated degrees of influence, responsibility, and complexity determine a person's social class. The higher the degree of influence and responsibility a person has or the more complex the work, the higher his or her status in society. As qualified personnel become scarce for relatively important, responsible, and complex occupations
income Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. Fo ...
increases, following the economic theory of scarcity resulting in value. According to this approach, occupation becomes more essential in determining class than income. Whereas professionals tend to create, conceptualize, consult and instruct, most Americans do not enjoy a high degree of independence in their work, as they merely follow set instructions. Definitions of the working class are confusing. Defined in terms of income, they may be split into middle-middle or statistical middle class in order to speak to issues of class structure. Class models such as Dennis Gilbert or Thompson and Hickey estimate that roughly 53% of Americans are members of the working or lower classes. Factors such as nature of work and lack of influence within their jobs leads some theorists to the conclusion that most Americans are working class. They have data that shows the majority of workers are not paid to share their ideas. These workers are closely supervised and do not enjoy independence in their jobs. Also, they are not paid to think. For example: The median annual earnings of salaried dentists were $136,960 in May 2006, indicating a high degree of scarcity for qualified personnel. The opinions and thoughts of dentists, much like those of other professionals, are sought after by their organizations and clients. The dentist creates a diagnosis, consults the patient, and conceptualizes a treatment. In 2009,
Dental assistant Dental assistants are members of the dental team. They support a dental operator (such as a dentist or other treating dental auxiliary) in providing more efficient dental treatment. ''Dental assistants'' are distinguished from other groups of de ...
s made roughly $14.40 an hour, about $32,000 annually. Unlike dentists, dental assistants do not have much influence over the treatment of patients. They carry out routine procedures and follow the dentists' instructions. Here we see that a
dental assistant Dental assistants are members of the dental team. They support a dental operator (such as a dentist or other treating dental auxiliary) in providing more efficient dental treatment. ''Dental assistants'' are distinguished from other groups of de ...
being classified as working class. Similar relationships can be observed in other occupations.


Weberian definition

Some modern theories of
political economy Political economy is the study of how economic systems (e.g. markets and national economies) and political systems (e.g. law, institutions, government) are linked. Widely studied phenomena within the discipline are systems such as labour ...
consider a large middle class to be a beneficial and stabilizing influence on society because it has neither the possibly explosive revolutionary tendencies of the lower class, nor the absolutist tendencies of an entrenched
upper class Upper class in modern societies is the social class composed of people who hold the highest social status, usually are the wealthiest members of class society, and wield the greatest political power. According to this view, the upper class is gen ...
. Most
sociological Sociology is a social science that focuses on society, human social behavior, patterns of social relationships, social interaction, and aspects of culture associated with everyday life. It uses various methods of empirical investigation and ...
definitions of middle class follow Max Weber. Here, the middle class is defined as consisting of professionals or business owners who share a culture of domesticity and sub-urbanity and a level of relative security against social crisis in the form of socially desired skill or wealth. Thus, the theory on the middle class by Weber can be cited as one that supports the notion of the middle class being composed of a quasi-elite of professionals and managers, who are largely immune to economic downturns and trends such as out-sourcing which affect the statistical middle class.


Income

Sociologists contend that middle class persons usually have above median incomes. As social classes lack clear boundaries and overlap there are no definite income thresholds as for what is considered middle class. In 2004, sociologist Leonard Beeghley identifies a male making $57,000 and a female making $40,000 with a combined households income of $97,000 as a typical American middle-class family. In 2005, sociologists William Thompson and Joseph Hickey estimate an income range of roughly $35,000 to $75,000 for the lower middle class and $100,000 or more for the upper middle class.


Education and income

Educational attainment Educational attainment is a term commonly used by statisticians to refer to the highest degree of education an individual has completed as defined by the US Census Bureau Glossary. See also *Academic achievement *Academic degree *Bachelor's degree ...
is one of the most prominent determinants of class status. Expertise is a necessary component of the
capitalist Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, priva ...
market system, and is seen as one of the factors of production. Those with higher educational attainment tend to be positioned in occupations with greater autonomy, influence over the organizational process, and higher
financial compensation Financial compensation refers to the act of providing a person with money or other things of economic value in exchange for their goods, labor, or to provide for the costs of injuries that they have incurred. Kinds of financial compensation inclu ...
. The following chart further explains the correlation between educational attainment and personal as well as household income. Source: U.S. Census Bureau, 2018


Household income controversy

Household income Household income is a measure of the combined incomes of all people sharing a particular household or place of residence. It includes every form of income, e.g., salaries and wages, retirement income, near cash government transfers like food stamp ...
is one of a household's attributes most commonly used to determine its class status but income may not always accurately reflect a household's position within society or the economy. Unlike personal income, household income does not reflect occupational achievement as much as it measures the number of income earners. Sociologist Dennis Gilbert acknowledges that a working-class household with two income earners may out-earn a single-income upper-middle-class household. For example, according to the US Department of Labor, two registered nurses could quite easily command a household income of $126,000 in 2006, while the median income for a lawyer was $94,930. Furthermore, household income fails to recognize household size. For example, a single attorney, earning $95,000, may have a higher standard of living than a family of four with an income of $120,000. Yet household income is still a commonly used class indicator.


Influence

The influence of the middle class depends on which theory one utilizes. If the middle class is defined as a modern bourgeoisie, the "middle class" has great influence. If middle class is used in a manner that includes all persons who are at neither extreme of the social strata, it might still be influential, as such definition may include the "professional middle class", which is then commonly referred to as the "upper middle class". Despite the fact that the professional (upper) middle class is a privileged minority, it is the perhaps the most influential class in the United States. Several reasons can be cited as to why the professional middle class is so influential. One is that journalists, commentators, writers, professors, economists, and
political scientists This is a list of notable political scientists. See the list of political theorists for those who study political theory. See also political science. A * Robert Abelson - Yale University psychologist and political scientist with special int ...
, who are essential in shaping public opinion, are almost exclusively members of the professional middle class. Considering the overwhelming presence of professional middle-class persons in post secondary education, another essential instrument in regards to shaping
public opinion Public opinion is the collective opinion on a specific topic or voting intention relevant to a society. It is the people's views on matters affecting them. Etymology The term "public opinion" was derived from the French ', which was first use ...
, it should come as no surprise that the lifestyle exclusive to this quasi-elite has become indicative of the American mainstream itself. In addition to setting trends, the professional middle class also holds occupations which include managerial duties, meaning that middle-class professionals spend much of their work-life directing others and conceptualizing the workday for the average worker. Yet another reason is the economic clout generated by this class. In 2005 according to U.S. Census statistics, the top third of society, excluding the top 5%, controlled the largest share of
income Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. Fo ...
in the United States. Although some in the statistical middle class (for example, police officers and fire fighters in the more affluent suburbs in the San Francisco Bay Area) may have lifestyles as comfortable as those found among the ranks of the professional middle class, only few have the same degree of autonomy and influence over society as those in the professional middle class. Other white-collar members of the statistical middle class may not only be unable to afford the middle-class lifestyle but also lack the influence found in the professional middle class.


Typical occupations

Due to the many different ways of sub-dividing the middle class, some occupations indicative of the professional middle class might be categorized as upper-middle or lower-middle. Typical occupations for members of the middle class are those identified as being part of "the professions" and often include managerial duties as well, with all being white collar:
Accountants An accountant is a practitioner of accounting or accountancy. Accountants who have demonstrated competency through their professional associations' certification exams are certified to use titles such as Chartered Accountant, Chartered Certifi ...
, Tenured Professors (Post-secondary educators), Psychologists,
Physician A physician (American English), medical practitioner (Commonwealth English), medical doctor, or simply doctor, is a health professional who practices medicine, which is concerned with promoting, maintaining or restoring health through th ...
s,
Engineer Engineers, as practitioners of engineering, are professionals who invent, design, analyze, build and test machines, complex systems, structures, gadgets and materials to fulfill functional objectives and requirements while considering the limit ...
s, Lawyers, commissioned Military Officers,
Architect An architect is a person who plans, designs and oversees the construction of buildings. To practice architecture means to provide services in connection with the design of buildings and the space within the site surrounding the buildings that h ...
s,
Journalist A journalist is an individual that collects/gathers information in form of text, audio, or pictures, processes them into a news-worthy form, and disseminates it to the public. The act or process mainly done by the journalist is called journalis ...
s, Mid-level corporate managers, Writers,
Economist An economist is a professional and practitioner in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this field there are ...
s,
Political Scientist Political science is the scientific study of politics. It is a social science dealing with systems of governance and power, and the analysis of political activities, political thought, political behavior, and associated constitutions and la ...
s,
Urban planner An urban planner (also known as town planner) is a professional who practices in the field of town planning, urban planning or city planning. An urban planner may focus on a specific area of practice and have a title such as city planner, town ...
s, Financial managers,
Registered Nurses A registered nurse (RN) is a nurse who has graduated or successfully passed a nursing program from a recognized nursing school and met the requirements outlined by a country, state, province or similar government-authorized licensing body to o ...
(RNs), Pharmacists and Analysts. Autonomy is often seen as one of the greatest measurements of a person's class status. Even though some working class employees might also enjoy largely self-directed work, large degrees of autonomy in the work place, as well as influence over the organizational process, which are commonly the results of obtained expertise, these can still be seen as hallmarks of upper-middle-class or professional-middle-class professions. As for the lower middle class, other less prestigious occupations, many sales positions, entry-level management, secretaries, etc., would be included. In addition to professionals whose work is largely self-directed and includes managerial duties, many other less privileged members of the statistical middle class would find themselves in semi-independent to independent white collar positions. Many of those in the statistical middle class might work in what are called the professional support fields. These fields include occupations such as dental hygienists, and other professional and sales support.


Consumption

The American middle class, at least those living the lifestyle, has become known around the world for conspicuous consumption. To this day, the professional middle class in the United States holds the world record for having the largest homes, most appliances, and most automobiles. In 2005, the average new home had a square footage of 2,434 square feet (roughly 226 square meters) with 58% of these homes having ceilings with heights in excess of nine feet on the first floor. As new homes only represent a small portion of the housing stock in the US, with most suburban homes having been built in the 1970s when the average square footage was 1,600, it is fair to assume that these large new suburban homes will be inhabited by members of the professional middle class. Overall, many social critics and
intellectuals An intellectual is a person who engages in critical thinking, research, and reflection about the reality of society, and who proposes solutions for the normative problems of society. Coming from the world of culture, either as a creator or as ...
, most of whom are members of the professional middle class themselves, have commented on the extravagant consumption habits of the professional middle class. It is also often pointed out that the suburban lifestyle of the American professional middle class is a major reason for its record consumption. The increasing materialism, even among such a highly educated class, is also often claimed to be connected to the notion of rugged individualism which gained popularity among the ranks of the professional middle class in the 1970s and 1980s.


Academic models


Middle-class squeeze


Struggle for reemployment: downsizing and outsourcing

When middle-class workers lose their jobs, they tend to be rehired but for a lower rate of pay. More often than not, people seek out temporary employment to make ends meet. About 4 percent of workforce, 11.4 million workers, a year are temporary workers. According to Christopher B. Doob, outsourcing is companies' subcontracting of services to other companies instead of continuing to provide those services themselves. This takes away from jobs offered in the United States and makes it more difficult to maintain and get jobs. Outsourcing raises the unemployment rate, and while outsourcing has been steadily increasing since the 1990s, data on the subject is limited by the power elite. Companies like Apple and Nike outsource jobs overseas so they can have cheaper labor to make their products and keep from raising prices in the States. The deliberate reduction of permanent employees in an effort to provide an organization more efficient operations and to cut costs. Large firms like IBM,
AT&T AT&T Inc. is an American multinational telecommunications holding company headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world's largest telecommunications company by revenue and the third largest provider of mobile te ...
, and GM are reducing their heavily middle class workforce by 10 to 20 percent because of the advancement of technology and the closing of work facilities. Downsizing has grown significantly in the States, as rising debt has forced companies to downsize so they can remain open. According to Doob, between 2005 and 2007, 3.6 million workers with three or more years on the job lost their positions because of companies closing down, relocating, having insufficient work, or due to the elimination of their positions.


Increasing inequality

Inequality and poverty rates are not always correlated. Poverty rates increased early in the 1980s until late in the 1990s when they started to go back down. From 2000-2010, the percentage of all people living in poverty rose from 11.3% to 15.1%. This statistical measure of the poverty rate takes into account only a household's current yearly income, while ignoring the net worth of the household.


Up to 2008

Income data indicate that the middle class, including the upper middle class, have seen far slower income growth than the top 1% since 1980. While its income increased as fast as that of the rich in the years following
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposing ...
, it has since experienced far slower income gains than the top. According to economist
Janet Yellen Janet Louise Yellen (born August 13, 1946) is an American economist serving as the 78th United States secretary of the treasury since January 26, 2021. She previously served as the 15th chair of the Federal Reserve from 2014 to 2018. Yellen is ...
"the growth n real incomewas heavily concentrated at the very tip of the top, that is, the top 1 percent". Between 1979 and 2005, the mean after-tax income of the top 1% increased by an inflation adjusted 176% versus 69% for the top 20% overall. The fourth quintile saw its mean net income increase by 29%, the middle income quintile by 21%, the second quintile by 17% and the bottom quintile by 6%, respectively. The share of gross annual household income of the top 1% has increased to 19.4%, the largest share since the late 1920s.Saez, E. & Piketty, T. (2003)
Income inequality in the United States: 1913–1998
Quarterly Journal of Economics, 118(1), 1–39.
As the U.S. is home to a
progressive tax A progressive tax is a tax in which the tax rate increases as the taxable amount increases.Sommerfeld, Ray M., Silvia A. Madeo, Kenneth E. Anderson, Betty R. Jackson (1992), ''Concepts of Taxation'', Dryden Press: Fort Worth, TX The term ''progre ...
structure the share of net-income received by the top 1% is smaller, and the share of the middle class consequently larger, than their shares of gross pre-tax income. In 2004, the top percentile's share of net income was 14%, 27.8% less than its share of gross income, but nonetheless nearly twice as large as in 1979, when it was clocked at 7.5%. The reduced size of the share of aggregate share of income, both before and after tax, of the middle class has been attributed to the reduced bargaining power of wage earning employees, caused by the decline of unions; a lessening of government redistribution;Weeks, J. (2007). Inequality Trends in Some Developed OECD countries. In J. K. S. & J. Baudot (Ed.), ''Flat World, Big Gaps'' (159–174). New York: ZED Books (published in association with the United Nations). and technological changes which have created opportunities for certain people to accumulate far greater relative wealth very quickly (including larger markets due to
globalization Globalization, or globalisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences), is the process of foreign relation ...
and
Information Age The Information Age (also known as the Computer Age, Digital Age, Silicon Age, or New Media Age) is a historical period that began in the mid-20th century. It is characterized by a rapid shift from traditional industries, as established during ...
technologies allowing faster and wider distribution of work product). In 2006 households that earn between $25,000 and $75,000 represent approximately the middle half of the income distribution tables provided by the
U.S. Census Bureau The United States Census Bureau (USCB), officially the Bureau of the Census, is a principal agency of the U.S. Federal Statistical System, responsible for producing data about the American people and economy. The Census Bureau is part of the ...
. Over the past two decades, the number of households in those brackets decreased by 3.9%, from 48.2% to 44.3%. During the same time period, the number of households with incomes below $25,000 decreased 3.5%, from 28.7% to 25.2%, while the number of households with incomes above $75,000 increased over 7%, from 23.2% to 30.4%. A possible explanation for the increase in the higher earnings categories is that more households now have two wage earners. However, a closer analysis reveals all of the 7% increase can be found in households who earn over $100,000. A study by
Brookings Institution The Brookings Institution, often stylized as simply Brookings, is an American research group founded in 1916. Located on Think Tank Row in Washington, D.C., the organization conducts research and education in the social sciences, primarily in e ...
in June 2006 revealed that Middle-income neighborhoods as a proportion of all metropolitan neighborhoods declined from 58 percent in 1970 to 41 percent in 2000. As housing costs increase, the middle class is squeezed and forced to live in less desirable areas making upward mobility more difficult. Safety, school systems, and even jobs are all linked to neighborhood types. The statistics used to track the share of income going to the top 1% have been criticized by Alan Reynolds. He points out that the Tax Reform Act of 1986 changed the way that income is defined on tax returns, which is the primary source of data utilized to compile income shares. Among these changes includes the fact that beginning in the 1980s, many C-Corporations switched to S-Corporations, which changed the way that their income is reported on income tax returns. S-Corporations report all income on the individual income tax returns of the owners, while C-Corporations file a separate tax return and corporate profits are not allocated to any individuals. Prior to 1986, approximately one fourth of all American corporations were S-Corporations, but by 1997 this share had risen to more than half. In addition, by 2001 S-Corporations were responsible for about 25% of before-tax profits. This shift to S-Corporations means that income previously not included on personal income tax returns appeared there during this change, as S-Corporation investors directly pay taxes on corporate profit regardless of whether it is distributed or not. Furthermore, Reynolds points out in the same literature that tax-deferred savings accounts grew substantially from the 1980s onward, so that investment income to these accounts was not included as personal income in the years which it accrued. The CBO noted that at the end of 2002, $10.1 trillion was in tax-deferred retirement plans, and that $9 trillion of that was taxable upon withdrawal. These numbers amount to potentially large amounts of investment income to middle-class families that are no longer reported on tax returns each year, but were reported prior to the widespread growth of tax-deferred retirement plans. Panel data that track the same individuals over time are much more informative than statistical categories that do not correspond to specific people. The Treasury did a study in 2007 that tracked the same individual taxpayers over the age of 25 from 1996 to 2005 and found differing results from what the graph above shows. The results showed that during those years, half of taxpayers moved to a different income quintile, with half of those in the bottom quintile moving to a higher one. About 60% of taxpayers in the top 1% in 1996 no longer stayed in that category by 2005. On an absolute scale, the lowest incomes saw the greatest gains in percentage terms and the highest incomes actually declined. Half of those in the bottom 20% in 1996 saw their incomes at least double during these years, while the median income of the top 1% declined by 25.8%. The reason that the results are so inconsistent with household income statistics is that household statistics do not track the same people over time; it is important to specify how many of the households in the top 1% in a given year were still there when looking at that category years later and gauging income gains.


2008 and after

After the
financial crisis of 2007–2008 Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fi ...
, inequality between social classes has further increased. As
William Lazonick William Lazonick (born June 8, 1945) is an economist who studies innovation and competition in the global economy. Lazonick's research seeks to understand how, on the basis of innovative enterprise, a national economy can achieve stable and equ ...
puts it: :Five years after the official end of the Great Recession, corporate profits are high, and the stock markets are booming. Yet most Americans are not sharing in the recovery. While the top 0.1% of income recipients—which include most of the highest-ranking corporate executives—reap almost all the income gains, good jobs keep disappearing, and new employment opportunities tend to be insecure and underpaid.William Laconic, ''Profits without Prosperity''. In:


See also

*
African-American middle class The African-American middle class consists of African-Americans who have middle-class status within the American class structure. It is a societal level within the African-American community that primarily began to develop in the early 1960s, ...
* American Dream * ''
Plain Folk of the Old South ''Plain Folk of the Old South'' is a 1949 book by Vanderbilt University historian Frank Lawrence Owsley, one of the Southern Agrarians. In it he used statistical data to analyze the makeup of Southern society, contending that yeoman farmers mad ...
'' *
Upper middle class in the United States In sociology, the upper middle class of the United States is the social group constituted by higher-status members of the middle class in American society. This is in contrast to the term lower middle class, which refers to the group at the opposite ...
*'' Class: A Guide Through the American Status System''


References


Bibliography

* Baritz, Loren. ''The Good Life: The Meaning of Success for the American Middle Class'' (1989) * Beckert, Sven, and Julia B. Rosenbaum, eds. ''The American Bourgeoisie: Distinction and Identity in the Nineteenth Century'' (Palgrave Macmillan; 2011) 284 pages; Scholarly studies on the habits, manners, networks, institutions, and public roles of the American middle class with a focus on cities in the North. * Blau, Peter & Duncan Otis D.; ''The American Occupational Structure'' (1967) classic study of structure and mobility * Curwood, Anastasia C. ed. ''Stormy Weather: Middle-Class African American Marriages Between the Two World Wars'' (University of North Carolina Press; 2011) 240 pages; explores the public and private views of upwardly mobile African-Americans between 1918 and 1942. * Fussell, Paul; ''Class (a painfully accurate guide through the American status system)'', (1983) () * Grusky, David B. ed.; ''Social Stratification: Class, Race, and Gender in Sociological Perspective'' (2001) scholarly articles * Hart, Emma, "Work, Family, and the Eighteenth-Century History of a Middle Class in the American South," ''Journal of Southern History,'' 78 (2012), 551–78. * Hazelrigg, Lawrence E. & Lopreato, Joseph;
Class
Conflict, and Mobility: Theories and Studies of Class Structure'' (1972). * Hoberek, Andrew. ''The Twilight of the Middle Class: Post-World War II American Fiction and White-Collar Work'' (2005) * Huffington, Arianna. ''Third World America: How our politicians are abandoning the middle class and betraying the American dream'' (Broadway Books, 2011). * Hyman, Louis. ''Borrow: The American way of debt'' (Vintage, 2012); argues that personal credit created the American Middle Class and almost bankrupted the nation. * Hymowitz, Kay; ''Marriage and Caste in America: Separate and Unequal Families in a Post-Marital Age'' (2006) * Jackson, Brenda K. ''Domesticating the West: The Re-creation of the Nineteenth-century American Middle Class'' (U of Nebraska Press, 2005). * Lamont, Michèle. ''Money, morals, and manners: The culture of the French and the American upper-middle class'' (U of Chicago Press, 1992). * McComb, Mary C. ''Great Depression and the Middle Class: Experts, Collegiate Youth and Business Ideology, 1929-1941'' (Routledge, 2013). * Mills, C. Wright. ''White Collar: the American Middle Classes'', (Oxford University Press, 1956). * Newman, Katherine S. ''Falling from grace: The experience of downward mobility in the American middle class'' (Free Press, 1988). * Pearson, Joseph W. ''The Whigs' America: Middle-Class Political Thought in the Age of Jackson and Clay'' (University Press of Kentucky, 2020). * * Reeves, Richard V. ''Dream hoarders: How the American upper middle class is leaving everyone else in the dust, why that is a problem, and what to do about it'' (Brookings Institution Press, 2018
online
* *Ware, Leland, and Theodore J. Davis, "Ordinary People in an Extraordinary Time: The Black Middle-Class in the Age of Obama," ''Howard Law Journal'', 55 (Winter 2012), 533–74. * Webb, Sheila. "The Consumer-Citizen: 'Life' Magazine's Construction of a Middle-Class Lifestyle Through Consumption Scenarios." ''Studies in Popular Culture'' 34.2 (2012): 23-47
online
* Whitaker, Jan. ''Service and style: How the American department store fashioned the middle class'' (Macmillan, 2006). * Whyte, William H. '' The Organization Man'' (1956), a famous classic * Zussman, Robert. ''Mechanics of the middle class'' (U of California Press, 2020).


News articles


The American Middle Class Is No Longer the World's Richest
''
The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid d ...
.'' April 22, 2014.
Middle Class Shrinks Further as More Fall Out Instead of Climbing Up
''The New York Times.'' January 25, 2015.
Middle-Class Betrayal? Why Working Hard Is No Longer Enough in America
''
NBC News NBC News is the news division of the American broadcast television network NBC. The division operates under NBCUniversal Television and Streaming, a division of NBCUniversal, which is, in turn, a subsidiary of Comcast. The news division's var ...
.''
Why the U.S. Could Soon Be the World's First Former Middle Class Society
Joseph Stiglitz for ''The Huffington Post.'' December 9, 2015.
Is shrinking the middle class a good thing?
''Al Jazeera America.''
Are you in the American middle class? Find out with our income calculator
May 11, 2016
Are You Middle Class?

No more middle ground: Politics have been getting more extreme as the middle class shrinks
''
Vice A vice is a practice, behaviour, or habit generally considered immoral, sinful, criminal, rude, taboo, depraved, degrading, deviant or perverted in the associated society. In more minor usage, vice can refer to a fault, a negative character t ...
.'' August 25, 2017
Families Go Deep in Debt to Stay in the Middle Class
''
The Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
''. August 1, 2019


External links


What's (Not) the Matter With the Middle Class?
The American Prospect ''The American Prospect'' is a daily online and bimonthly print American political and public policy magazine dedicated to American modern liberalism and progressivism. Based in Washington, D.C., ''The American Prospect'' says it "is devoted t ...

Lou Dobbs discusses "The War on the Middle Class"
on October 17, 2006

by
Gabor Steingart Gabor Steingart (born 1962 in West Berlin) is a German journalist and the author of several popular and influential books. He was the chief editor of ''Handelsblatt'' from 2010 to 2018. In 2018, he founded his own media company that issues new ...
(spiegel online) October 24, 2006
American Middle Class is losing ground (Pew Research Center) December 9, 2015
{{DEFAULTSORT:American Middle Class All articles containing potentially dated statements Social class in the United States