Friday, September 14, 2012

Redefining the Middle Class

Both Presidential candidates define the "Middle Class" as those with an income up to $250,000 per year.
At first glance it seems so out of touch to think "middle class" extends all the way to 250k.

I did some research and found that 19.9% of American households make over 100k with 5.9% of those making over 150k, and  5.3% making over 200K. Places like The Northeast, Coastal California, and Urban centers in the West, make up the largest percentage of these higher incomes. Not surprising that these are also the most expensive places to live. (Lucky me).

In fact, if a person made 100K in 1990 they would need over 170K to maintain that same standard of living today and the aforementioned regions have seen the cost of living rise even more dramatically. This means that a person making 200k certainly will have anything they need but if they live in the higher expense areas in the nation, their standard of living will mirror those making significantly less in places like Shaboygin, MI.

So apparently our presidential candidates are not as off base as I thought. Perhaps you can be Middle Class and make 250K per year.

I guess it is as Yogi Berra once said, "A nickel ain't worth a dime anymore". 

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