American middle class

American Middle Class

The American middle class is a social class in the United States that includes individuals and households who fall between the working class and the upper class in terms of income, education, and occupation. The middle class is often considered the backbone of the American economy and society, playing a crucial role in driving economic growth and maintaining social stability.

Distribution of two plus income households

Chart showing inflation-adjusted percentage increase in mean after-tax household income in the United States 1979–2005

Definition

The definition of the American middle class can vary depending on the criteria used. Commonly, it is defined by a combination of income, education, and occupation. According to the Pew Research Center, the middle class includes households earning between two-thirds and double the median household income. This range can vary based on the cost of living in different regions of the country.

Salinas Office

Suburban tract house

Income

Income is a primary factor in determining middle-class status. The U.S. Census Bureau provides data on median household income, which serves as a benchmark for defining the middle class. As of recent data, the median household income in the United States is approximately $68,700. Therefore, middle-class households typically earn between $45,800 and $137,400 annually.

Education

Education is another key determinant of middle-class status. Individuals in the middle class often have at least a high school diploma and many have completed some form of higher education, such as an associate degree, bachelor's degree, or even a master's degree. Higher education levels are associated with better job opportunities and higher earning potential.

Occupation

Occupations commonly associated with the middle class include white-collar jobs such as teachers, nurses, engineers, accountants, and managers. These jobs typically require specialized skills and education and offer stable employment and benefits.

Economic Role

The American middle class is vital to the economy. Middle-class households are significant consumers of goods and services, driving demand and supporting businesses. They also contribute to the economy through taxes and investments. The financial stability of the middle class is essential for economic growth and prosperity.

Challenges

The American middle class faces several challenges, including income inequality, job insecurity, and rising costs of living. The Great Recession of 2008 had a significant impact on middle-class households, leading to job losses, home foreclosures, and reduced savings. Additionally, the increasing cost of healthcare and education has put financial pressure on many middle-class families.

Related Pages

• Income inequality in the United States
• Great Recession
• White-collar worker
• U.S. Census Bureau
• Pew Research Center
• High school diploma
• Associate degree
• Bachelor's degree
• Master's degree
• Healthcare in the United States
• Education in the United States