Defining the Middle Class
Economists use household income as a measure of wealth in America. In other words, they look at the combined earnings of everyone living in a household to determine who is rich, who is poor, and who is middle class.
Watch this video from "How the Deck Is Stacked," a series co-produced by FRONTLINE, Marketplace, and PBS NewsHour. As you watch, pay attention to the criteria economists use to define different income groups, or tiers.
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If you stopped 10 people on the street, probably 7 of them would say they’re middle class.
But the new reality in America is that even though a lot of us think we’re middle class, most of us aren’t.
I’m Kai Ryssdal, and this is "How the Deck Is Stacked."
One way that economists like to think about the middle class is in terms of household size and household income. Let’s see if you can spot where you fall.
If you’re single, you’d have to make between $24,000 and $73,000 a year to be considered middle class.
For a couple, it’s $34,000 a year to about $103,000.
And for a family of four, it’s $48,000 to about $145,000 a year.
One reason a lot of us think we’re middle class is because most of us used to be. In 1971, 70 percent of Americans were defined as middle class. Today, just half of us are. That’s a big drop. Some of those people moved up, some people moved down.
Take Notes
Before moving on, answer the following questions. You may watch the video again or read the transcript of the video.
- How did your definition of the middle class from the previous page match up with what you learned in the video?
- Were you surprised by any of the data presented in the video? Explain.
