Where Is the Middle Class?

Indeed, who are the middle class? What are its numbers? Definitions are needed here. Who is writing them?

The questions are important. Over the past 20 years the middle class has dwindled as poverty has risen and the wealthy have become wealthier. Trickle down economics has not worked as witnessed by income distribution among American households.

If manufacturers and retailers need to sell their products to the public, then the public must be able to afford those purchases. The public comprises 70%+ of the labor pool. Labor must be properly compensated if the economy is to perform adequately for all. It is commonsense.

From this logic we come to understand the need for the middle class. It is the needed ingredient if we expect economic outcomes sufficient to keep the economy healthy.

Defining the middle class is a reasonable starting point. A quick internet search provided these alternate definitions:

·        About half of Americans, 52% of U.S. adults, are considered “middle class,” according to analysis by the Pew Research Center. Pew defines the middle class as households that have an annual pre-tax income that is at least two-thirds to double the national median. That ranged from $48,500 to $145,500 in 2018.

·      The economic group between the upper and lower classes, including professional and business workers and their families.

• Those in the middle class have enough disposable income to afford minor luxuries like vacations or restaurants, but also rely on borrowing for big-ticket items like homes and cars.
• The middle class constitutes a slim majority of the U.S. population (around 52%), but that is still the least it has been as it has declined over nearly half a century.

Improving purchase power of the middle class will strengthen retail markets. It will also increase retirement investing and saving for college costs for their kids. Automobile and housing markets rely on the middle class heavily. Boost the middle class and you boost not only the economy, but you also actually boost hopes and dreams of everyone. The wealthiest will see healthy returns on their investments, too. Poor people will find more opportunity to climb out of poverty if they are educated and work hard.

The model presented here is ‘trickle up’ and should replace the trickle down nonsense. Actually, it takes all economic classes working together for the whole to function properly. We don’t need the poor. We need to pull them out of that circumstance. They would serve all of our purposes if they joined the rest of society in the middle class.

Let’s help each other to solve this problem. Rebuild the middle class to a healthier standard. Now!

April 2, 2021