How does the middle class help the economy?
But in fact, the opposite is the case: The middle class is the source of economic growth. A strong middle class provides a stable consumer base that drives productive investment. Beyond that, a strong middle class is a key factor in encouraging other national and societal conditions that lead to growth.
What is considered working class?
Economists in the United States generally define “working class” as adults without a college degree. In that sense, the working class includes both white and blue-collar workers, manual and menial workers of all types, excluding only individuals who derive their income from business ownership and the labor of others.
What do you understand by middle class?
The middle class is a description given to individuals and households who typically fall between the working class and the upper class within a socio-economic hierarchy. Those in the middle class often are employed as professionals, managers, and civil servants.
What are middle-class problems?
Middle-class problems do not just impact white Americans, but a diverse set of Americans. Conversely, systemic barriers to opportunity experienced by marginalized groups are middle-class issues too. Pursuing racial justice and improving the well-being of the American middle class are now, more than ever, complementary goals for public policy.
Is median income a good measure of middle-class progress?
Trends in median income are often used as a litmus test for middle-class progress. “The clearest indicator of the continuing struggles of the middle class,” write researchers from the Center for American Progress, “has been the failure of the national median income to rebound to pre-recession levels and its overall decline over the past 14 years.”
What is the race of the middle class?
Four decades ago, the vast majority of the middle class was white. In 1979, the middle class was 84 percent white, nine percent Black, five percent Hispanic, and two percent “other.” Over time, the middle class has become much more race– plural.
Why has the American middle class become more diverse over time?
A major reason why the American middle class has become more diverse over time is because the country has too. Below we compare the racial composition of the middle class with the full income distribution in 2019. White Americans are slightly over-represented in the middle class at 59 percent compared to being 57 percent of the population.