We're All Middle Class?
This is interesting: Have you guys seen the articles that talk about how people tend to think they're middle class no matter what their actual income is, whether they make $22k a year or $200k a year? Depending on the polls you look at, about half of all Americans describe themselves as middle class -- which is often defined either as earning around the median family income of just above $56,000 (as of 2016), or as the half of the population making more than the bottom quarter and less than the top quarter of households. People's definitions of what actually constitutes middle class, however, tend to vary depending on their own family income level.
So that's a good question
What does being middle class mean to you? Does it mean making a specific income? Having enough to pay your bills? Having enough to send your kids to college or to save for retirement? Having an emergency fund that can pay for unexpected expenses, or always having enough food in the house? Having a car -- having a newer car -- having a paid off car?
- CNN Money has a calculator here to see if your household is defined as being in the middle class range for your own state and county -- very broadly defined as being between two thirds and two times and median income for that county.
- And Time has an interesting article here that talks about defining middle class more broadly than yearly income alone.
No one really agrees on the exact definition of middle class, making it easier to see why most people think of themselves as middle class.
One more question
How much would you have to earn (or have in the bank) in order to feel rich?
Rich? Ten million dollars in liquid assets, with no risk to the principal.
56,000? Not in Chicago. Can't afford housing AND a CAR. A family of four? Is that before or after taxes? You won't own a home anywhere you'd want to send your kids. Subsidized housing eligibility caps at 46,000 I believe could be higher dependent on dependents. Plus, if that's a combined income, that is very low income.
Median household income in the U.S. in 2015, $56,516: http://money.cnn.com/2016/09/13/news/economy/median-income-census/ -- sorry, it was 2016 articles I saw, but they referenced a 2015 number so I'm a year off. And yes, that would be pre-tax _household_ income.
https://www.census.gov/content/dam/Census/library/publications/2016/demo/acsbr15-02.pdf shows it slightly lower, at $55,575
It's totally dependent on where you live even if you are a minimalist. Interesting question Rachel. Can't wait for replies from around here.
What about upper middle class, solid middle class, and lower middle class? Maybe that is why everyone thinks they are middle class, because there are those categories.
If they get rid of ACA I will be poorer. Not middle class.
The ACA means I (and others) am paying for your insurance...that's why it's affordable!
Unless you are in the top 2% income wise in the United States, you are not paying for her subsidy. Like Mark said, the reason why the rates have doubled for some people is because a lot of the healthy younger people decided to pay the penalty instead of purchasing insurance. Also quite a few of the states decided not to expand medicaid, and so people that otherwise would have been eligible for medicaid, ended up going to the ER when they got sick, and people that had insurance got charged more to compensate.. Also I heard that the rates under the ACA were too low in the beginning, and insurance companies lost money.
Blue Cross Blue Shield sent us a letter telling us about the increase in rates, and it literally said that we were subsidizing other people. I will post it when I find it. And I had friends that received exactly the same letter.
To me, middle class is more of a lifestyle than an income. We are higher income but we save a lot - we don't spend it. We live in a working class neighborhood because we like it. We live like we are middle class because that suits us. We could live a more extravagant lifestyle I suppose, but we aren't fancy people. BUT.....we'll be able to retire early and send our kids to college, so maybe that alone kicks us out of the middle class.
According to the CNN calculator, middle class in Cook County is $36K-$107K. That's an awfully wide range, but it speaks to all the poverty and the super rich in Chicagoland.
I missed your reply Meg and reposted the CNN calculator...but I totally am in the same boat as you. I was a stay at home mom for many years and recently went back to work full time. We could absolutely live on my husbands income alone -- and we did for many years. I guess I still have the mentality of that salary range even now that we are a dual income family again. It allows us a bigger travel budget...but everything else gets saved for retirement/college/paying down the mortgage!
We keep hearing the middle class is shrinking, & it sad but it's true.
If it gets redefined by spinning it differently, it's hard to compare year over year where each of us stand.
Most people are paying more for Healthcare & rates are increasing at higher accelerated rates (unless you don't make enough & you get a subsidy) & a higher percentage of taxes. It did help millions of people get insurance, but a lot more got stuck with higher bills than it helped.
Social programs like this need everyone on board, the young & healthy people are not getting on board so it's failing.
I know several that have elected to just pay the joke of a penalty. Some penalty. It doesn't scare anyone...
I haven't figured out how some of people can protest the changing of the ACA & not pay into the ACA, & are part of the cause of it to be financially failing... They decided to pay the cheap penalty vs. those inflated premiums. Some of those ACA policies are worthless with the crazy copays & deductibles.
If you are not getting raises to keep up with inflation & all the extra taxes in fees being added (even the small things like the shopping bags in the city or like soda tax (coming soon in Crook County)), higher property taxes to pay for Illinois mess, etc, you will be falling down the ladder. Other things like if your water supply comes from Lake Michigan, your fess have increased over the past year or so, if they haven't they will.
It all adds up.
Illinois credit rating was downgraded again a few weeks ago, which means it will cost all of us in higher taxes...again.
Lots of finger pointing, but looking in mirrors.
I had lunch with 2 Chicago Alderman yesterday, & the former Mayor of Evanston.
Things have been getting much worse over the past decade.
No one wants to be responsible & fix things.
We all know the revenue is there with our state being one of the highest taxed states in the US, it's the spending & the corruption.
It is possible to KEEP all the social programs to help lower income folks that are in place at much lower costs, but the behind the scene corruption prevents things from being fixed properly.
We keep hearing about all the good jobs leaving ILLINOIS. Why is that? We all know what the problem is...
BUT I STILL LOVE ILLINOIS! ... :*)
-Mark
" It did help millions of people get insurance, but a lot more got stuck with higher bills than it helped."
Sounds like things may get better without ACA.
ACA mainly helped sick people & lower income people who couldn't get or afford insurance.
Someone has to pay for it.
A few people lucked out, and weren't affected too badly who had prior policies, but many lost customized, right-sized, cheap insurance. with the Dr's they loved.
Diabetes & Alzheimers & end of life care are big weights on the system along with drug costs.
Big lawsuits & high insurance for Dr's are very expensive as well.
Canadians pay 50% income tax & the more you make, the more you pay.
Urgent care is still waiting long hours in Canada. Ask any Canadian.
Drugs ARE cheaper in Canada.
Look at all the places the are just across the boarder where Canadians with money go for medical. Look at Florida & places where the Canadian snowbirds vacation. There are companies that specialize for Canadian patients in those areas! Amazing, huh?
Regulations in the US & red tape preventing low drug prices.
The laws protecting consumers are a large part of the higher costs.
You want to lower health insurance?
Get people to be more responsible of what they eat & consume. (= NO GARBAGE!!!)
A balanced diet & exercise, minimal alcohol & no smoking.
You fix that, you lower costs with a generally healthier population.
There is NO incentive with a single payer system.
1/3 of companies now have penalties if you smoke.
Many have rebates & incentives to get employees healthier to lower costs.
The general population is much less active these days & we ALL will be paying for it one way or another.
Without BIG monetary incentives for the majority of the people to be healthy, nothing will work. Sadly enough, being healthy just to be healthy is not enough incentive for many people, so we all end up paying for their unhealthy choices.
Somethings like pre-existing can't be helped, (ex. some cancers, hereditary, accidents, birth defects, etc), but the MAJORITY of health issues are preventable.
Just a few things to think about...
-Mark
My premiums went to 50% just this year...definitely didn't help me. I can't wait for it to be repealed.
I found this calculater to be of interest when taking your locale into consideration -- http://money.cnn.com/interactive/economy/middle-class-calculator/
For Cook County -- Middle class range is 36K - 107K
Think most have disappeared ,because of companies leaving USA and too many immigrants coming here everyday ! and technology improving and eliminating over many jobs ):
Just a note guys: As comments are beginning to take a more political turn, here, note that I will shut comments on this post off if it becomes acrimonious -- there are plenty of places to argue about politics online, but this is not one of them.
🙂