Economists say you need $50,000 a year to be "middle class" - do you?

2015-10-23T13:59:52-04:00

American economists place the starting point for being able to afford a "middle class" life style at $50,000 a year. (The upper limit is $140,000 a year.)

The US government says that around 72% of all Americans earn less than that, that around 24% of Americans earn between that and $140,000, and that around 4% earn more than $140,000.

How much "in the middle" is the "middle class"?

https://www.ssa.gov/cgi-bin/netcomp.cgi?year=2014

Wage Statistics for 2014

The national average wage index (AWI) is based on compensation (wages, tips, and the like) subject to Federal income taxes, as reported by employers on Forms W-2. Beginning with the AWI for 1991, compensation includes contributions to deferred compensation plans, but excludes certain distributions from plans where the distributions are included in the reported compensation subject to income taxes. We call the result of including contributions,...

Response by SFC Joe S. Davis Jr., MSM, DSL made Oct 23 at 2015 2:10 PM

2015-10-23T14:10:54-04:00

COL Ted Mc I would agree, with the inflation increasing and the economy uncertain I would assume so.

Response by PO3 Private RallyPoint Member made Oct 23 at 2015 2:12 PM

2015-10-23T14:12:36-04:00

!!!! that is middle class already!!?? no way ... why did I feel like I am near the bottom!?

I am in WV ... a 50k is consider upper class :D lol

Response by CPT Private RallyPoint Member made Oct 23 at 2015 2:13 PM

2015-10-23T14:13:34-04:00

COL Ted Mc Sir, you know what they say about statistics. :-))

Response by LTC Private RallyPoint Member made Oct 23 at 2015 2:16 PM

2015-10-23T14:16:03-04:00

I would suspect the "middle class" marker varies by region/state. 50k in San Diego doesn't go very far - but I would venture to say 50k in Montana/Wyoming/South and North Dakota, might go a bit farther.

I do find it a bit disturbing that only 4% of the labor force earns 140K/yr or more.

Response by LTC Stephen F. made Oct 23 at 2015 2:20 PM

2015-10-23T14:20:36-04:00

In those areas of the country with lower costs of living $50,000 may well be a good baseline for middle class living for those living on fixed incomes such as retirees COL Ted Mc.
Location is a critical factor in determining affordability and sufficiency of income to maintain a standard of living.
An income level of $50,000 a year in New York City, the Washington, DC suburbs, and Hawaii or other high cost of living areas is below middle class.

Response by SSgt Christopher Brose made Oct 23 at 2015 2:25 PM

2015-10-23T14:25:00-04:00

I just love it when categorical statements are made by a whole class of people, like "scientists" and "American economists" -- they're just so authoritative.

[/sarcasm]

Response by SSG Warren Swan made Oct 23 at 2015 2:27 PM

2015-10-23T14:27:38-04:00

"Middle Class" is what someone wants to define it as for the given day. I'm not poor, not rich, but I'm able to do many of the things I want to do and rob peter to pay paul to get the rest. But that definition shouldn't make me "middle class". I want to be part of the "Happy and Content" class. Money helps there, but isn't the sole definer of how it is.

Response by MAJ Private RallyPoint Member made Oct 23 at 2015 2:38 PM

2015-10-23T14:38:07-04:00

Depending on location and the size of household. 50K is great for single/shared apartment dwellers. For a family of 4 certainly lower income level class.

Response by SGT John Rauch made Oct 23 at 2015 2:45 PM

2015-10-23T14:45:42-04:00

ha ha ha I make about half that! still way happier with way less money than I was making while in the service

Response by COL Jean (John) F. B. made Oct 23 at 2015 2:52 PM

2015-10-23T14:52:51-04:00

COL Ted Mc - That depends on where you are located and your personal family situation. Having said that, I think it is a fair figure for an average.

Response by Sgt Aaron Kennedy, MS made Oct 23 at 2015 3:10 PM

2015-10-23T15:10:45-04:00

I'd almost prefer to know what "percentile" I was in for World, National, State, etc.

As an example, "if" I made $75,000 exactly, would that make me W-75, N-78, S-73, R-80, etc.

Plug in your ZIP code & your annual income and the higher the number the better you are. If you are below 50~ (really 60 because of "quintiles") on anything, then up your game!

Response by COL Ted Mc made Oct 23 at 2015 3:20 PM

2015-10-23T15:20:05-04:00

If you accept $25,000 as the beginning of the "middle class" then around 51% of all Americans don't make that much.

If you use the 25% to 75% statistical rule, then the income range for "middle class" is (roughly) $6,000 to (roughly) $50,000.

Response by SPC(P) Private RallyPoint Member made Oct 23 at 2015 11:08 PM

2015-10-23T23:08:01-04:00

My wife, daughter, and I live fairly comfortably on 25K a year. We don't have luxuries, we don't waste money on satellite TV, we drive used cars, and we don't rack up debt. So yes, I see $50k/year approaching the middle class, if not in it, it certainly isn't "lower class".

Response by CSM Charles Hayden made Oct 24 at 2015 3:23 PM

2015-10-24T15:23:45-04:00

COL Ted Mc My deceased, first wife's family was considered 'upper class' in Swanton, VT during the 1930s and 40s. Her father had a steady, solid income, as a US Customs officer. A reliable income affects any family's status in their world.

Response by MAJ Ken Landgren made Oct 24 at 2015 3:55 PM

2015-10-24T15:55:17-04:00

It looks like they took the median household income to derive the $50,000 figure.

Response by SSG Private RallyPoint Member made Oct 26 at 2015 9:24 AM

2015-10-26T09:24:18-04:00

Someone can earn 50k a year, but if they are spending all of their money like a sailor, then they are not middle class. They are poor.