The Working Middle Class

The working class in America is salary or wage labor that illustrates manual and industrial work includes blue-collar jobs and most pink collar jobs .  It usually means people exchanging their physical labor for money.

There’s a lot of talk about America’s middle class or working class, which many people feel is shrinking. However, there isn’t a consistent definition of what middle class means. The absence of a consistent definition causes confusion when comparing studies and reports in the media. It is further compounded when terms such as “ordinary people” or “working people” are used interchangeably with the middle class.

What is known, however, is that multiple factors can influence what is termed, middle class. Factors include household income, level of education, type of job, and even an individual’s viewpoint on their social class.

So how is middle class defined, and why is understanding social class and their interactions important?

A Working Class story today

What does it mean to be in the working class? A simplistic view of social class distinguishes the groups based solely on economic status. In this system, the upper class are the very wealthy, the lower class represents the very poor, and the middle class is everyone in between. This can result in a diverse group of individuals comprising the middle class.

I would like to approach this from a different angle . Picture this : Adult parents, raising kids that depend on you and you are able to provide for them the basic necessities of their life- food on the table, a roof over your head- with quality education, and you pay the bills. That sounds like success doesn’t it ?

It’s not an easy job to achieve this. not like anytime before  in US History and it’s only becoming harder. In America, about half of one’s economic mobility, and therefore their social class, is dictated by their parents’ social class according to intergenerational earnings elasticity (IGE). Essentially, IGE evaluates how difficult it is for a person to leave the social class they were born into. An IGE of zero means the social class a person is born into has no impact, and a score of one means the social class you’re born defines it completely. America’s IGE of 0.5 is higher than many developed countries.

For many Americans, what social class they identify with has more to do with how they compare themselves to others. For instance, a survey by CNBC of millionaires, individuals who are wealthier than 90% of Americans, found 84% of those surveyed reported being middle class or upper-middle class. This was because they compared themselves against other millionaires.

PEW research in 2016 Defined Middle-income households – those with an income that is two-thirds to double the U.S. median household income – had incomes ranging from about $45,200 to $135,600 in 2016. Lower-income households had incomes less than $45,200 and upper-income households had incomes greater than $135,600 (all figures computed for three-person households, adjusted for the cost of living in a metropolitan area, and expressed in 2016 dollars).

But most people who are defined as working class are mainly in the lower middle class or “working poor” ; and end up living paycheck to paycheck and a huge chunk of the American population can’t afford a $400 emergency.

I used to be that guy…

One common method to determine social class is the data provided by the Pew Research Center. The Pew Research Center offers a calculator for people to determine their social class based on their income that is adjusted for the number of people in the household and where a person lives.

How Are the Different Social Classes Defined?

A strength of the upper class is their social network. Wealthy individuals tend to live in affluent areas with a variety of opportunities for their children, such as cultural experiences, high-quality schools, safe neighborhoods, and internship opportunities.

The lower class is among the most disadvantaged in America. Individuals in this group have little to no social network and tend to have lower levels of education. They often live in less advantaged neighborhoods with little to no enrichment opportunities for their children. They have limited resources, and tend to work manual labor and unskilled jobs that do not pay well. Approximately 29% of Americans in 2016 were in the lower class according to the Pew Research Center.

The middle class is perceived as being comfortable. They work hard for what they have and can provide for themselves and their children. Those in the middle class can afford homes, typically have health insurance, and help their children with a college education. They may have some social network to rely on and to help their children, but not to the extent of the upper class.

The middle class is sometimes further divided into three groups: the working class, middle, and upper-middle class.

Regardless of the tier, several traits characterize the middle class as a whole. Those in the middle class:

• Can pay their bills on time,
• Have a secure job,
• Are able to save money,
• Have the time and resources to take vacations.

How Does Social Class Impact a Person’s Views About Society, Behavior, and Other People?

Many people deny social class impacts their daily lives. Interestingly, research reveals social class impacts a person’s culture, beliefs, behaviors, and how they interact with people from other social classes.

People in the lower class feel poor, which can impact their thinking and views of the world. They often have to rely more on other people for help just to try and get by. On the positive side, however, this mentality makes this group more likely to help someone and typically are more emotionally attuned to others.

My personal opinion anything below $40,000 a year in the United States might as well be in the poverty line. Below that ; there’s no way you can afford the essentials even with extreme frugality . Also,  if you are living slightly above the poverty line there’s always the chance that anything could break you and bring you back down because you can barely achieve savings -if any – and again if there’s an emergency and you need $400 chances are you’re not gonna have that amount !

People born and raised in the upper class tend to see class as fixed and innate. They may feel more entitled based on their social status and have less compassion for others. Research suggests this can cause them to behave less ethically and less compassionately than less affluent individuals. Individuals with power and authority tend to be more true to themselves and more authentic.

On the plus side, research has also shown that the wealthy can relearn how to connect with others in different social stations. They can increase their genuine compassion for others, which will allow them to use their position to help others less fortunate.

There is a comfort in being in the middle class, although this group does not have the power of the upper class. But, the middle class is a large group, and if this group aligns and works together, this group can make change happen.

Instead of looking at income, defining yourself as middle class is about knowing you will have the basics of life without feeling squeezed or overly stressed. It’s about more than just getting by. The middle class is viewed as individuals who have access to good education, healthcare, and reliable jobs. These are individuals who can raise their children, pay their bills reliably, and still have the resources available to enjoy life, such as vacations.

There is a sense of balance.

What we aim to achieve

There should be efforts to help those in the middle and lower classes to have the ability to achieve the American dream that with hard work you can achieve.

Some strategies that may help lessen the social class divide in America include:

• Increasing the compassion and empathy of the all people towards those who have less.
• Providing affordable, quality education for everyone,
• Creating easier access to quality healthcare for everyone,
• Implementing a tax system that is fair across all economic groups and benefits everyone,
• Creating more high-paying jobs for all Americans.

While these all are important ; I want to talk about the Pragmatic and individual steps I took that changed my life drastically and share the tips and tricks under my sleeve that enabled me to save almost a majority of my income !

I want to discuss:

• the Step by step processes to financial independence
• The correct way to master your budget
• Securing your Retirement
• Building an Emergency fund
• Buying the main necessities of life without breaking the bank
• And much more to improve our lives

Final Notes 

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