that middle class again...

In this earlier post we quoted one American who has re-evaluated the meaning of "middle-class". In these times of recession , the ideological disguise and camoflage has unveiled the reality of class for many Americans. Media commentators often have lots to say about the "middle class", but they rarely define what they mean by the term. This is very wise on their part, because it quickly becomes obvious that the "middle class" includes just about everybody, which would make people think about just what it is they’re supposed to be in the middle of.

America's "middle class" has never been easy to define, measure or study. It's loosely seen as those falling between the impoverished and the rich, the vast group that makes enough money to aspire to the "American dream". The dream varies depending on the individual. But generally, "middle class" means enough to live on, with a little bit more. "Middle class" means in typical times, you can support a household, buy a home and pay a mortgage, afford medical care, help the kids with college costs and plot out a comfortable retirement. With the "little bit more," you can indulge - an upgraded smart phone, a relaxing vacation, a better car. Perhaps broadly, such as those earning a certain percentage below or above the median income. In Arizona, the median income last year (2010) was almost $33,000. But Philadelphia-based economist Joel Naroff said that defining "middle class" based solely on income can be misleading. Living costs vary widely, and what might be considered a "middle-class" income in one area wouldn't cut it in another area of the country. Family size and number of children also weigh heavily. The Economic Policy Institute calculated in 2008 that the threshold for a minimum "middle-class" living standard for a two-parent, two-child family varied from about $35,800 in rural Nebraska to almost $69,000 in Boston.

Jill Humpherys is a stay-at-home Gilbert, Ariz., mother with five kids ranging in age from 12 to 24 whose husband earns about $104,000. While that sounds like an upper-middle-class or upper-class salary to some, she said the family lives frugally, pays cash for used vehicles, and clips coupons. She said that is what it takes to support their four-bedroom, two-bath home, maintain a savings account, finance college education for the kids and save for retirement. The two oldest are married, another is at the University of Arizona and two others live at home. "My definition of middle class would be that you can live modestly, own a home, and send your children to college. Obviously, that dream has gotten very expensive," she said.

Javier Portillo and his wife, Alice, of Maricopa, Ariz., are probably more typical of middle-class families because they both work. She works in customer service at a Walmart and he drives a truck. Together they earn about $80,000 to support themselves and four children, aged 16 to 3. They have had to cope with a reduction in her hours over the holiday season. They also maintain a frugal lifestyle that includes coupon-clipping and shopping overnight on Black Friday to get the most Christmas presents for the least amount of money. The economic downturn has them on edge. "With this economy, for me and my wife personally, we learned to squeeze the quarter until it squeaks a little," he said. "I'm sure everyone loves their kids, but if you can't say, 'No, you can't have a new gadget now,' you are going to be in debt the rest of your life."

The U.S. Census Bureau doesn't have an official definition for middle class. It has focused instead on income inequality, the growing gap between the rich and the not-so-rich. Tom Rex, an Arizona State University economist, said it's pretty much the top 1 percent of the wealthy that has been getting wealthier. Whether you define the middle class by income, state of mind, dreams achieved or other measures, reaching that classification and remaining there appears harder to achieve.

A task force chaired by Vice President Joe Biden concluded a year ago that "middle-class families are defined by their aspirations more than their income." Those aspirations include homeownership, a car, college education for their children, health and retirement security and occasional family vacations. Biden's task force concluded it's more difficult for families to become middle class because prices for health care, college and housing have risen faster than income. People also need more education than once required to be middle class. And Rex pointed out that a family pretty much needs two incomes to become middle class whereas it once only took one salary.The standard of living is higher than the middle class had a couple of generations ago. With the explosion of consumer products, it raised the bar. Is a flat-panel TV or a Blu-ray player a necessity for the middle-class household? Is an iPod touch or a netbook vital to the middle-class teenager? No, but it sometimes feels like it.

The recession has shaken up some key "middle-class" hopes and dreams. According to a recent survey by the Pew Research Center the downturn has reduced Americans' expectations about retirement and their children's future. It inspired more frugal spending and borrowing. And it led to a concern that it could take years for home values and family finances to recover. 55 percent of adults in the labor force said that since the recession began , they have been out of work, had their pay or hours cut or become involuntary part-time workers. 62 percent said they have cut back on their spending. And 31 percent plan to maintain frugal habits when the economy improves. 48 percent said they are in worse financial shape than before the recession began, particularly those with annual household incomes below $50,000 and those who are 50 to 64 years old (Only 20% said they were better off.) About 25% of the adults believe that when their children are the same age, their children's standard of living will be lower. A decade ago, only a tenth of Americans believed that. So, far from us being “all middle class now”, there is no longer any middle class. It’s rather the case that “we are all working class now”

Taken from here

The World Socialist Movement asserts that class is defined by the position in which you stand with regard to the means of production. In capitalist society there are two basic classes: those who own and control the means of production and those who own no productive resources apart from their ability to work. The working class in capitalist society is made up of all those who are obliged through economic necessity to sell their mental and physical energies for a wage or salary. If this is your position then you are a member of the working class. The job you do and the status it might have, the pay you receive and how you chose to spent it, are irrelevant as long as you are dependent on working for a wage or salary in order to live. What this means is that essentially we are living in a two-class society of capitalists and workers. To ‘escape from your class’, do not dream of becoming a capitalist. Work instead for a society in which class divisions no longer exist. Where there is no social ladder but everyone has the chance to educate themselves in the best and broadest way possible and to do work which is rewarding and enjoyable, without ever defining themselves as a cleaner or a clerk, where everyone has the opportunity to relate to others as human beings rather than as cogs in an uncontrollable economic machine.