[quote=DaCounselor]Great post DWCAP re the definition of “middle class”. In addition to what I believe are changes in the parameters of the defined “class” over generations, I think you could ask 10 different people today how they define middle class and probably get 10 different parameters.[/quote]
Thanks. I totally agree. I have been trying to come up with something that fits here, but wasnt able to come up with a really good definition of middle class. I guess it really boils down to how the person themselves define themselves. The rich generally know who they are, and the poor can be defined as those unable to support themselves due to their incomes at the bottom of the financial ladder (as opposed to the idoits who just spend too much). But Middle class really is a catch all phrase more than a definition, encompasing “everyone else”.
[quote=DaCounselor]It goes without saying (but i’ll say it anyway) that class definitions seem to be tied by many observers to visible material possessions and lifestyle actions as opposed to stock portfolio balances and personal net worth. Back in the day of more limited credit availability, people were essentially forced to live within parameters set by their income. With the advent of the age of easy credit, it became increasingly easier to magically transform oneself up a level or two in class, in terms of visible class indicators, that is.
So now we have these huge numbers of people who have been using credit to raise their visible class standing, which for many has acted as a detriment to their actual net worth. Ironically, the inevitable ‘come to Jesus’ moments facing many of these folks will come to pass and may deposit them back at a class lower than where they started. What a journey.[/quote]
I think the baby boom generation fits this perfectly. I worry about their retirment, and the fact that many cant afford it. On a farmers budget my grandfather was able to pay for all 4 of his kids to go to school and to LOAN them the money to buy their first house. I cannot say that about many in my parent generation. I doubt it even more for my generation. Saving is just so out of style and at somepoint people will stop lending you money. I have always really liked the quote I read on here that the only thing that will really come out of this downturn is that alot of people will learn that they are not as wealthy as they thought they were. That is only so true.
[quote=DaCounselor]Which leaves me with the question that dove tails into DWCAP’s commentary – what is “middle class”? Is a family with two newer cars, with a 42″ flat screen, eat out once a week, one two week vacation a year involving air travel, blah blah blah – is that middle class? What if the same family has a negative net worth? Can they still be middle class?
I think class definitions are almost irrecovably tainted, especially when viewed through the eyes of the younger generation, due to the over-consumption of the typical American, the Age of Entitlement effect, the keeping up with the Jones mentality, etc. In this instance, perception is most certainly not reality. [/quote]
Ill leave my first response to stand about the definition of “middle class” cept to add that I believe it to also be very regional. Middle class in CA could easly be defined as someone makeing 150k a year. Almost anywhere in the midwest outside of Chicago and a very few other cities you would be rich as hell according to most people.
The most responsible and frankly coolest people I have known were the people who didnt have everything handed to them.
