There are lower, middle, and upper economic classes that have always divided the Americans, says Clark. Read to know which class you fall into.
The lower, middle, and upper lines have always divided Americans by economic class. The fastest way to determine which economic class you fall into is by using the Pew Research Center’s income calculator. After finding out which economic class you fall into, you must also learn what to do with that information.
According to Pew’s analysis, a household with three people must earn an income of $156,600 to fall into the upper class line. This means to belong to the upper class line, a household must earn more than double of the national median income. Pew also identified that the wealthiest households are those that have gained wealth despite the start of the Great Recession. From 2007 to 2016, the median net worth of the top 20% of households increased by 13% or $1.2 million. The gap in wealth between the upper and lower class has more than doubled from 1989 to 2016.
According to a Gallup survey in early 2022, more than half of the respondents considered themselves to fall into either the upper middle or middle class. Based on Pew’s calculator, the middle class households must earn between $52,200 to $156,600. This means to belong to the middle class line, a household must earn two-thirds of double of the national median income. This is after the national median income is adjusted for the local cost of living and the size of a household. However, Pew’s research showed that most of the increases in income were experienced before the year 2000.
According to Pew’s analysis, a household with three people earns an income of less than $52,200 to be considered among the lower class line. This group makes up a huge portion of the U.S. population with around 38% of the households earning less than $50,000 last year. Middle-class households depend on household income to increase their net worth. Upper-class households depend on investments and financial assets to increase their wealth. However, lower-income households experienced a decrease in resources by at least 20%, as reported by Clark.