> “middle-income” Americans are defined as adults whose annual household income is two-thirds to double the national median, about $42,000 to $126,000 annually in 2014 dollars for a household of three.
$42k for a household of three seems very low to be considered middle-class. I suppose in rural areas that makes sense, but in most population centers that would be fairly impoverished.
Conceptually speaking, I think we generally understand what middle income means. People living plainly and comfortably who don't have lavish things or have to surmount debt to stay out of homelessness.
I'm pretty surprised how high that number is.
I live in Los Angeles. I have a one bedroom apt and a 10 year old car. I eat in, try to be thrifty, take trips a few times a year but stay in modest accommodations or couch surf.
With tax, I'd need about 55k to support this lifestyle with zero savings.
That's $26/hr fulltime - a number probably out of reach for the majority of the city workforce.
I wonder how most people get by.
I think people should openly discuss these things - you can't create a transparent open market of human capital if we can't culturally speak of how much we charge and get.
Income disclosure is a method of self organizing towards a more equitable society.
You misread the chart. It means the upper class' share of total income increased from 29% to 49%, while the middle class went from making 62% of all income, to 43%.
$42k for a household of three seems very low to be considered middle-class. I suppose in rural areas that makes sense, but in most population centers that would be fairly impoverished.