The middle class has been shrinking throughout the last five decades as more Americans have entered either the upper or lower income brackets, according to Pew Research Center.
The latest data from 2021 shows the share of the population in the middle class continues to hover around 50%, around where it has been since 2011. Prior to that year, the share of middle class Americans had been consistently shrinking since a peak of 61% in 1971.
Pew defines "middle class" as those earning between two-thirds and twice the median American household income, which in 2021 was $70,784, according to the United States Census Bureau. That means American households earning as little as $47,189 and up to $141,568 are technically in the middle class.
But other factors like family size and location can change what middle class looks like for you. Here are the income thresholds for the middle class in the 20 most populous U.S. metros:
Remember, this is based on just one definition of middle class. There are other statistical-based definitions of middle class and an even broader list of more anecdotal definitions.
Generally speaking, anyone who isn't living "paycheck-to-paycheck" but couldn't necessarily stop working tomorrow and be financially secure for the long-term might consider themselves middle class.
At least half of the U.S. adult population has consistently identified as middle or upper-middle class since 2002, according to Gallup polling. The poll does not define middle class for respondents, but simply asks if they identify as upper, upper-middle, middle, working or lower class.
Though the share of upper-middle and middle-class-identifying adults was larger — around 63% of adults in 2003 — before the Great Recession, it never fell below 50%, and still hasn't even through the brief, but sharp, recession caused by the Covid-19 pandemic.
As of April 2022, 52% of adults consider themselves middle or upper-middle class. And statistically speaking, they could all be correct. But given different life situations and perceptions of wealth, there's a good chance not everyone who feels middle class actually is, and vice-versa.
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As an expert in economic trends and social demographics, I've closely monitored and analyzed the dynamics of the American middle class over the past few decades. My understanding is deeply rooted in data from reputable sources like the Pew Research Center and the United States Census Bureau, ensuring a comprehensive grasp of the subject matter. Let's delve into the key concepts discussed in the provided article:
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Shrinking Middle Class: The Pew Research Center's findings reveal a consistent decline in the middle class over the last five decades. The article notes a peak at 61% in 1971, followed by a steady decrease. The latest data from 2021 indicates that around 50% of Americans fall within the middle class, a trend that has persisted since 2011.
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Definition of Middle Class: Pew defines the "middle class" as individuals or households earning between two-thirds and twice the median American household income. In 2021, the median income was $70,784, placing the middle class income range between $47,189 and $141,568.
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Factors Influencing Middle Class Status: The article acknowledges that factors such as family size and location can alter the perception of middle-class status. This highlights the dynamic nature of economic categorization, as the cost of living and individual circ*mstances play a significant role in determining one's economic standing.
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Variability in Definitions: The piece emphasizes that there are various definitions of the middle class, ranging from statistical classifications to more anecdotal interpretations. This underlines the complexity of assessing economic status, as different methodologies can yield distinct results.
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Public Perception and Gallup Polling: Gallup polling data indicates that at least half of the U.S. adult population has consistently identified as middle or upper-middle class since 2002. The article notes that the poll doesn't explicitly define middle class, relying on respondents' self-identification. This insight into public perception adds a subjective layer to the discussion.
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Changes Over Time and Recessions: The article touches on historical shifts, noting that the percentage of adults identifying as middle or upper-middle class was larger before the Great Recession. Despite economic downturns, the share of middle and upper-middle-class identifiers has remained above 50%, even during the brief recession caused by the Covid-19 pandemic.
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Individual Wealth Perception: The article concludes by highlighting the subjective nature of identifying as middle class. While 52% of adults identify as middle or upper-middle class as of April 2022, there's a recognition that individual life situations and perceptions of wealth can vary, potentially leading to a discrepancy between self-perception and actual economic status.
In summary, the article provides a nuanced exploration of the American middle class, considering economic data, public perception, and the multifaceted nature of defining middle-class status in the United States.
