For many economists, a country’s gross domestic product, or GDP, is an indicator of the health of its economy. It’s a measure of the total value of goods and services produced over a period of time. Overall, about two-thirds of America's GDP is generated by consumption, or the use of goods and services by households. This means that household spending greatly impacts the overall economy.
Let’s meet the Murrays (pictured here). This family of three fits the definition of middle income, but they don’t feel middle class. Despite having advanced degrees and jobs, they don’t own a house, and they aren’t debt-free like they had planned to be. Listen to the audio clip, in which Kai talks to Mary and Aaron about perceptions and realities. After listening, answer the question below.
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KAI RYSSDAL (Voiceover): If you go just by the numbers, families that make between $48,000 and $145,000 a year are in the middle class. That’s according to the Pew Research Center.
The Murrays are smack in the middle of that range. Between them, they make $90,000 a year. And yes, I can hear you already: “$90,000 a year, Kai, that’s good money!” Yes, it is. But, listen to this.
We met Mary and Aaron back in December, at a coffee shop in downtown Los Angeles, working on a story about how people thought they’d be affected by the Federal Reserve’s first interest rate hike in six years, if you remember back then, and when we stopped by the Murrays’ table, Aaron said this to us.
AARON MURRAY: I live close to the poverty line, so most of the things like purchasing, making a large purchase, are already out of my grasp, so making it another step unattainable isn’t really going to dramatically alter my life.
KAI RYSSDAL: Does it depress you at all?
AARON MURRAY: Uh, no because I’m not a depressed person. (Laughing)
KAI RYSSDAL (Voiceover): So how is it that two fully employed teachers in their mid-30s, raising a five-year-old daughter, can feel like they’re right above the poverty line? Well as we started work on this series we went to see the Murrays on a day that just happened to start with Aaron’s car getting totaled, and after the tow truck left, we sat down to talk.
KAI RYSSDAL: Do you guys feel like you’re middle class?
AARON MURRAY: It feels weird to say that I am middle class.
MARY MURRAY: I don’t feel middle class, but I think maybe I have a perception of what that is in my brain that’s different than the reality of it.
KAI RYSSDAL: What’s your perception then?
MARY MURRAY: Um, not having to worry about putting gas in the car. (Laughs) Not having to say, “Oh, let’s wait till Thursday to pay this,” because that’s the day you get paid.
AARON MURRAY: Extra guacamole! I can get extra guacamole. That’s all I want in my life, I want to get extra guacamole.
KAI RYSSDAL: But I’ve got news for you: you guys are middle class by definition.
MARY MURRAY: Which is insane to me. I’d like to feel middle class, but I just don’t.
Historically, being middle class in America has stood for something beyond the numbers.
Listen again to the audio clip or read the transcript if needed.