The Dwindling Middle Class - Page 2

Xin Lu · 01-19-2008, 03:56 PM

The middle class is the people with the least aid and have to pay the most out of pocket. For example, the AMT is hitting a lot of middle class families now, and a lot of schools don't give middle class families aid. My friend got into MIT but did not go because her parents made just a bit below 100 thousand a year and MIT costs over 40k a year. Because of their income level they don't qualify for aid, but they really can't afford paying that much a year. So yeah, I think in all reality the middle class have the least purchasing power out of everyone and it is pretty sad.

rolltimer · 01-19-2008, 04:33 PM

The middle class of today would look like the "rich" of 2 or 3 decades ago to the middle class of those decades. There are more must-have toys and gadgets (cell phones, Blackberries, computers, TVs, camcorders, digital cameras, game boxes, DVD recorders/players, VCRs) today that even the lower middle class and "poor" have in their possession. Look at the homes of today. Most have more TVs and many have more bathrooms than they have occupants. My home, for instance, has 3 full bathrooms and 2 people live here. I've owned townhomes in the past where I was the sole occupant and had 2 & 1/2 bathrooms. What we now consider as necessities {cell phone for every family member who has the power of speech; car for every family member who has a license} comes at a great price to our pocketbooks. Many have traded in the notion of a savings plan for a debt repayment schedule. But the power to change that lies with the individual, not the government, the Federal Reserve, or the employers. Many of us here have decided to no longer live as debtors. I applaud those who have looked at their lives of debt and made the hard choices and sacrifices to change, to get out of debt, to embrace saving and investing.

72Tiger · 01-19-2008, 04:37 PM

I was raised in a lower middle class family, that didn't have much of anything in the way of extras. The only way my parents held it together with six kids, was by living that way. Extras just weren't an option. Despite all of this, today my mother is living a comfortable, but not grand retirement.

Today, I am firmly in the middle to upper middle class range, but I am using that life lesson of living below my means, and I think I am doing quite well because of it. To me, that is the only way I know that I will be successful. I may even be able to enjoy an early comfortable retirement.

Instead of focusing on what class you are in, live like the one below it instead of the one above it, and you will do fine.

rorich · 01-21-2008, 09:20 AM

Quote:

Originally Posted by 72Tiger

Today, I am firmly in the middle to upper middle class range, but I am using that life lesson of living below my means, and I think I am doing quite well because of it. To me, that is the only way I know that I will be successful. I may even be able to enjoy an early comfortable retirement.

I agree with you. Most people live way beyond their means and this often result in them buried in debt. Thse people are living in what I like to call the "Haagen Daz World". How good is the good life when everything is financed?

Finally_Frugal · 02-01-2008, 10:50 AM

I just posted a website for the Bureau of Labor Statistics on my website, which has an inflation calculator. You can enter the salary you were making five years ago, and compare the calculator will tell you whether your salary has kept up with inflation.

I've read all kinds of articles about why the middle class is feeling so squeezed (I know I am!!) and one of the keys seems to be that our incomes are not rising (and exceeding) the rate of inflation. That is the case with me: I work in an education setting, and getting a 1% raise is like squeezing water out of a rock. Compare that to the 2 - 3% inflation rate (actually, over 4% last year!) and we're basically losing money each year!

Xin Lu · 02-01-2008, 11:13 AM

The problem with those inflation rates is that it's much lower than stated. I wrote a rant about the CPI here: http://baglady.dreamhosters.com/2007...-living-index/

bluecobia · 02-01-2008, 11:28 AM

Middle class ? what is it? I have searched and not found a good definition.
If I had to put income to what it is currently, I would say I think of lower middle class to be $30,000-$50,000. Middle Middle class $50,000- $80,000. Upper Middle class $80,000-$150,000.

How does this match what other people think?
\
I do not think the middle class is dwindling. However, there may be more people in the lower end than there used to be.

Ronni · 02-02-2008, 07:01 AM

Quote:

Originally Posted by rstlne

Stopping inflation in its tracks would help the middle class immensely. Many people fall off the treadmill because their costs have jumped while their wages have not kept up.

I agree. I got a 4% raise, but along with it came a huge increase in my rent payments, a rise in grocery prices, and the crazy gas prices. But those things aren't really factored in inflation, you see. So even though we're feeling the pinch of inflation, the numbers SAY we shouldn't, and wages won't adjust otherwise. *sigh*

Xin Lu · 02-02-2008, 01:47 PM

Quote:

Originally Posted by bluecobia

Middle class ? what is it? I have searched and not found a good definition.
If I had to put income to what it is currently, I would say I think of lower middle class to be $30,000-$50,000. Middle Middle class $50,000- $80,000. Upper Middle class $80,000-$150,000.

How does this match what other people think?
.

I think this really depends on where you live. Here in San Mateo County a family of 4 making $90k a year is considered low income. See http://www.cityofsanmateo.org/dept/h...ome_limits.pdf

This is because everything costs so much here, but I'm sure in another part of the country $90k a year is quite upper middle class.

Ronni · 02-03-2008, 09:14 PM

Quote:

Originally Posted by Xin Lu

I'm sure in another part of the country $90k a year is quite upper middle class.

Oh yes! In Columbus, Ohio, I'd be sitting pretty with $90K a year!

Hell, I'd like to make $40K a year....and I'd still probably be struggling.

I realize that relatively, I am well off. I have an apartment that I don't have to share with a roommmate, a car, a computer, a TV, a DVD player. I'm fed and clothed and warm, and I have a little savings stashed away. However, I am living paycheck to paycheck, I shop at discount stores for food, I rarely buy new clothes, and I don't have most extras like cable. My only real extras are the occasional trip to get something cooked and DSL.

I'm not poor, but I am feeling the pinch. HARD. So, really, what does that make me?

01-19-2008, 03:56 PM	#11
Xin Lu Wise Bread Blogger Join Date: Jan 2008 Posts: 238 Reputation: (40)	The middle class is the people with the least aid and have to pay the most out of pocket. For example, the AMT is hitting a lot of middle class families now, and a lot of schools don't give middle class families aid. My friend got into MIT but did not go because her parents made just a bit below 100 thousand a year and MIT costs over 40k a year. Because of their income level they don't qualify for aid, but they really can't afford paying that much a year. So yeah, I think in all reality the middle class have the least purchasing power out of everyone and it is pretty sad. __________________ Blogs I Write: The Baglady @ http://baglady.dreamhosters.com Wise Bread @ http://wisebread.com/xin-lu

01-19-2008, 04:37 PM	#13
72Tiger Senior Member Join Date: Jan 2008 Location: Knoxville, TN Posts: 296 Reputation: (38)	I was raised in a lower middle class family, that didn't have much of anything in the way of extras. The only way my parents held it together with six kids, was by living that way. Extras just weren't an option. Despite all of this, today my mother is living a comfortable, but not grand retirement. Today, I am firmly in the middle to upper middle class range, but I am using that life lesson of living below my means, and I think I am doing quite well because of it. To me, that is the only way I know that I will be successful. I may even be able to enjoy an early comfortable retirement. Instead of focusing on what class you are in, live like the one below it instead of the one above it, and you will do fine. Last edited by 72Tiger; 01-19-2008 at 04:46 PM.

02-01-2008, 10:50 AM	#15
Finally_Frugal Member Join Date: Jan 2008 Location: Portland, OR Posts: 55 Reputation: (12)	I just posted a website for the Bureau of Labor Statistics on my website, which has an inflation calculator. You can enter the salary you were making five years ago, and compare the calculator will tell you whether your salary has kept up with inflation. I've read all kinds of articles about why the middle class is feeling so squeezed (I know I am!!) and one of the keys seems to be that our incomes are not rising (and exceeding) the rate of inflation. That is the case with me: I work in an education setting, and getting a 1% raise is like squeezing water out of a rock. Compare that to the 2 - 3% inflation rate (actually, over 4% last year!) and we're basically losing money each year! __________________ http://www.finallyfrugal.blogspot.com/

02-01-2008, 11:13 AM	#16
Xin Lu Wise Bread Blogger Join Date: Jan 2008 Posts: 238 Reputation: (40)	The problem with those inflation rates is that it's much lower than stated. I wrote a rant about the CPI here: http://baglady.dreamhosters.com/2007...-living-index/ __________________ Blogs I Write: The Baglady @ http://baglady.dreamhosters.com Wise Bread @ http://wisebread.com/xin-lu

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

01-19-2008, 04:33 PM	#12
rolltimer Senior Member Join Date: Dec 2007 Location: Alabama Posts: 131 Reputation: (24)	The middle class of today would look like the "rich" of 2 or 3 decades ago to the middle class of those decades. There are more must-have toys and gadgets (cell phones, Blackberries, computers, TVs, camcorders, digital cameras, game boxes, DVD recorders/players, VCRs) today that even the lower middle class and "poor" have in their possession. Look at the homes of today. Most have more TVs and many have more bathrooms than they have occupants. My home, for instance, has 3 full bathrooms and 2 people live here. I've owned townhomes in the past where I was the sole occupant and had 2 & 1/2 bathrooms. What we now consider as necessities {cell phone for every family member who has the power of speech; car for every family member who has a license} comes at a great price to our pocketbooks. Many have traded in the notion of a savings plan for a debt repayment schedule. But the power to change that lies with the individual, not the government, the Federal Reserve, or the employers. Many of us here have decided to no longer live as debtors. I applaud those who have looked at their lives of debt and made the hard choices and sacrifices to change, to get out of debt, to embrace saving and investing.

02-01-2008, 11:28 AM	#17
bluecobia Junior Member Join Date: Jan 2008 Posts: 21 Reputation: (10)	Middle class ? what is it? I have searched and not found a good definition. If I had to put income to what it is currently, I would say I think of lower middle class to be $30,000-$50,000. Middle Middle class $50,000- $80,000. Upper Middle class $80,000-$150,000. How does this match what other people think? \ I do not think the middle class is dwindling. However, there may be more people in the lower end than there used to be.