Inside looking out: Singin’ the middle class blues
I looked under this rock. Not there. Then I looked under that rock. Not there either. Where has the American middle class gone?
In her article, “What is Considered Middle Class Income?” Kimberly Amadeo writes, “There is no official U.S. government definition of middle-class income, but the Pew Research Center defines it as between 67% and 200% of the median household income. This categorizes households earning between $41,119 and $122,744 in 2017 as middle-class families. That uses the median household income figure of $61,372 from that same year, as reported by the Census Bureau’s September 2018 report.”
She continues, “According to a Pew survey, people thought they were poorer than they were. Around 40% said they were lower middle-class or poor when only 32% actually were. Another 44% thought they were middle class. Only 16% admitted to being rich when the actual number was 26%. The Pew Survey said Americans felt less affluent than they did before the Great Recession In 2008. More than half said they were middle class, and only 25% said they were poor.”
To add further confusion to the definition of middle class, Amadeo reports, “Former Secretary of Labor Robert Reich suggests that the middle class be defined as households making 50% more or less than the median, which would put the middle class in the $25,000-$75,000 income range, where there are about 50 million families.
“President Barack Obama said that the middle class is comprised of individuals who make less than $200,000 and couples who make less than $250,000. In 2013, Congress quoted its own definition of a middle class income during the fiscal cliff compromise. It said the middle class is anyone making less $400,000 or couples making less than $450,000.
So let’s put this a simpler equation. The middle class household income ranges from $25,000 to $449,000. Really?
All of these numbers suggest a very disturbing fact. There no longer exists a clearly defined middle class in America, and everyone, even the wealthy, do not believe they are categorized properly into income classes.
By the way, 25 grand can support a family of nobody, and a couple making over $400,000 with no kids can afford to put two Maseratis in their garage.
The so-called middle class has put this country on their backs. They hold large mortgages, pay high taxes and slide further into credit debt. Financial advisers tell them to save for their children’s hundreds of thousands of dollars cost of college education, put 10% of their money into retirement accounts, and have an average of $9,000 in an emergency fund in case the car blows up or some other unexpected catastrophe.
I suppose depositing all this money away is possible if the family stops eating, keeps their house heated at 60 degrees, doesn’t buy any new clothes, does not eat at a nice restaurant and never goes on vacation. Forget going to the movies, too. Have you seen what they charge for a bucket of popcorn?
American economist Robert Shiller said, “The desperately poor may accept handouts because they feel they have to. For those who consider themselves at least middle class, however, anything that smacks of a handout is not desired. Instead, they want their economic power back.”
We seem to be caught in a vortex that spins our lives in the same place because we are so reliant on external factors when it comes to our incomes. The old car needs tires, burns oil and something rattles underneath, but we worry if we should take on another car payment. Budgets restrain us from the occasional indulgence of taking the kids on vacation, so we try to save for two years, but then the hot water heater break downs and the roof needs replacement. There goes the emergency money fund we don’t actually have.
Radio talk show host George Noory said, “I have never run for political office, but every night I am reaching out to millions of Americans on the radio and I am deeply concerned that the middle class of the United States is being sold out to multinational corporations with a globalist agenda.”
We try our best to live modestly. Our few luxuries might be cable TV and Friday night pizza, but keeping up with the bills can stress us to a breaking points, so we work more hours. Decisions bring more stress. Should I buy that $5 dollar box of Cheerios or wait until it goes on sale?
When we get to our golden years, we’re told we should have enough money to live on for another 20 years or so. Many 65-plussers still have to work.
Then we hear about the able-bodied guy next door who never worked a full year in his life and he lived with his mother. She died. He inherited the house and a boatload of her money and spends every day and night drinking beer on the porch.
Have I depressed you enough with this column? Please accept my apologies. My bills are due now and I’m trying not to feel guilty about paying for the extra two movies I watched this month. At least the bag of popcorn I ate was $4 cheaper than what you pay at the theater.
I think I’m going to petition Congress to change the name of the middle class.
We should be called the burdened class.
Rich Strack can be reached at katehep11@gmail.com.