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Middle class at a crossroads, not for the first time

"To me, nothing epitomizes the middle class like a white picket fence. We bought this house last year, and it came complete with the fence."

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There've been, by our very rough count, something like a zillion sound bites through the course of this campaign and we've still got a month and a half to go. The candidates have been talking about anything and everything they think will resonate with voters, including heavy use of a phrase that might affect the broadest chunk of Americans:

"The middle class."

So, um, who exactly is that?  There's no government definition. Economists generally agree it's households who earn about $40-120,000 a year. But that's a big range, and that's just the numbers.  

When you close your eyes and picture a typical middle class American, what do you see?

We went out on the streets of cities across the country to ask people to define middle class, and no matter where we went, they agreed on a lot of the basics.

You need a decent job. You own a home... maybe a barbecue in the backyard. 

But start filling in the details, and things get tricky.  Like, that decent job? What qualifies as decent? People gave answers that ranged from white-collar to blue-collar. Doctor. Lawyer. Police. Firefighter. Teacher. Skilled trades. Autoworker.

As far as education, also a huge range. Some said you need a high school diploma. Others, a college degree.  

People disagreed on even just the basic philosophy of what it means to be middle class.  As Marvelous Baker, a foundation administrator who lives in Cleveland, sees it, middle class means “the ability to provide the necessities of life.” But office worker Emmeline Ross of Los Angeles says a middle class family should be “able to buy things not because they need to, but because they want to.”

If you’re confused, that’s because the definition of the middle class is confusing.  Especially right now.  “It's like middle class is disappearing,” said Robin Brown, a retired custodial worker in Cleveland.  Ross, the office worker in Los Angeles, felt the middle class just is “not what it used to be.”

What about you? Do you consider yourself middle class? And does that mean you have a backyard with a barbeque? We're looking for the view from your middle-class window. Submit your photos -- and stories -- at "Picture This: The Middle Class."

Great Moments in Middle Class History

So, what did the middle class used to be? 

One of the first references to the middle class made by an American was in 1792, when Thomas Paine wrote:

"A poll tax was levied. It excited, as it naturally must, universal detestation among the poor and middle classes."

Yes, even then the middle class stereotype was someone annoyed by taxes, but that’s where the similarities end. Because the middle class Paine was talking about wasn’t white collar, or blue collar. It was... the yeoman farmer.

Once upon a time, according to writer Michael Lind, author of Land of Promise: An Economic History of the United States, our founding fathers realized that if they were going to actually make their crazy idea of a democracy work, they needed “a dominant middle class," who, because of a certain amount of economic security and economic independence is "capable playing various roles that society in a republic demands, whether as a voter or as a juror.”

Since there were a lot of farmers running around back then, they seemed like good candidates for the job. But, Lind argues, farmers didn't just naturally become economically independent and secure. America's first middle class didn't just happen. 

It was “an artificial creation of private sector and public sector policies," Lind argues, including "distribution of federal land to farmers through the Homestead Act, and elementary public education.”

Things that America invented to help support this new middle class, says Lind. Of course, by the early 1900s, new technology meant we needed fewer farmers. The rest headed to factories in cities, where conditions were poor, and they didn't get paid much.

America looked at its dissolving middle class, and started, in modern parlance, to freak out.

“Thinkers at the time, on the left and the right and the center, all said ‘we have to do something,'” says Lind.  They feared that “a desperate, low-wage majority that lacked property, that lacked any stake in society, would turn to demagogues.” The theory back then, Lind argues, was “a stable democracy requires a dominant middle class.”

It took almost 30 years for the U.S. to figure out how to bring its new factory worker majority in to the middle class.  Franklin Roosevelt was still grappling with task when he was president.  Lind says that eventually, due largely to public and private policies created during the New Deal and after World War II including Social Security, government-backed mortgages, the GI bill, and a suite of labor laws pushed by unions, a new version of the middle class was born.  It was mostly made up of workers in the manufacturing sector. 

Fast forward to today, when new technology and a changing global economy mean we need fewer factory workers in the U.S.  It’s a very similar moment, Lind argues, to that one 100 years ago when we were shifting off the farms. We’ve got a void where the bulk of the middle class used to be and we haven't quite figured out how to fill it.

Both presidential candidates have hinted at their visions for the future of the middle class this election year. For President Barack Obama, education is key.

“Education was the gateway to opportunity for me,” he told the crowd at the Democratic National Convention speech in Charlotte recently. "And now, more than ever, it is the gateway to a middle class life.”

For Republican presidential nominee Mitt Romney, the gateway is through small business.  In his acceptance speech at the GOP convention, he said to a cheering audience, “We will champion small businesses, America's engine of job growth. That means reducing taxes on business, not raising them.” 

Both visions -- of education and entrepreneurialism -- can be inspiring, says Lind. The problem, he argues, is “the math simply does not work.” 

And he means the math on both sides. On the one hand, only about 10 percent of Americans are self-employed. On the other hand,  70 percent don’t have college degrees. So, the bulk of Americans won't be owning small businesses or becoming white collar professionals with B.A.s anytime soon.

Lind says -- and most economists agree -- that for the foreseeable future, most of America’s jobs will be “personal service jobs.”  Everything from elder care to child care to janitors to restaurant servers. Jobs that can’t be off-shored or automated.   

“The question is, will this be a huge population of the working poor as you have in many Latin American countries?” Lind asks.  “Or will we take the social reforms necessary to turn a service sector majority in to a middle class majority?”     

If we’re really worried about the future of the middle class in this election, Lind says, that’s the question we should be trying to answer.

About the author

Krissy Clark is the senior reporter for Marketplace’s Wealth & Poverty Desk.
flymiester's picture
flymiester - Oct 2, 2012

Nowhere in this podcast do go into more detail bout those jobs that are skilled labor. I don't mean the factory worker. I myself do not possess a 4 year college degree, but an associates in electronics and tons of experience in my field from the military and government work. Not to mention many different certifications that accompany my work as a field engineer. To say the other 70% will be pushing a broom is offensive, smug, arrogant and aloof. Typical of the NPR crowd and most Obama supporters. I have my retirement, compensation and benefits valued at well over 130k a year, while just turning 40. I believe I'm doing far better than the college educated, humanities, sociology, literature or psychology major that leaves school with 30-100k in debt. Most of these folks will be lucky to find employment today paying between 30-50k or starve to death working for a non-profit. Better hope for a position in academia (hear they are laying off) with tenure or write a book that sells well. Better yet consider studying a field that pays like science, engineering, or business in the first place. You pay no homage to the those in skilled trades that are part of the "so called low wage 70%" who are plumbers, electricians, HVAC mechanics, elevator technicians and other skilled trades. Some people will never be "college material", but excel in other talents. These folks are in positions that generally can't be outsourced. Elevator technicians, for example, make in excess of 100k plus salary on average. Not to mention benefits. Focus more on skilled, in-demand trades and businesses that lack these workers in your future stories. The only conversation I'll be having with a liberal arts major is "I'd like fries with that". Now who's being smug? Enough said....

hemetraya's picture
hemetraya - Sep 26, 2012

This is an excellent historical view to put it into perspective. As Clark says, the middle class is changing due to technology's effect on the economy. As an educator, I see that schools need to change to address this change.

We need creative schools. In order to educate the new middle class, it is time for education to shift away from the cookie cutter model to the creativity model. It is unfortunate that truly creative schools have been made alternatively and public schools are bound and gagged by the mandated curriculum and testing.

I highly recommend you watch this video:
http://www.upworthy.com/getting-an-education-is-about-learning-to-pass-t...

I am a Montessori teacher; there are many methods that teach independent thinking and creativity that is needed in the future. Let's wake up!

ide231's picture
ide231 - Sep 24, 2012

Mr. Lind's account makes it sound as though the middle class were an American invention. In Books 4-6 of the Politics, Aristotle explains why it is necessary, how to create it where it does not exist, and what its attributes should be. The American Founders knew this well.

conmigo's picture
conmigo - Sep 22, 2012

The main problem isn't the 1%...It's the 30 to 40 % of government workers out of touch with reality. And if your work is through primarily government contracts and regulation, like law and health care, your a de facto government worker. I love it when I overhear someone making 80 thousand to 100,ooo dollars per year who has almost no education say" But, I could make so much more in the private sector..." I always think: Yeah, their just waiting for you!!!

OhioKen's picture
OhioKen - Sep 21, 2012

Nice article but still doesn't clarify the definition of the middle class. What concerns me is how both presidenet Obama and Mitt Romney define the middle class. In stating his policies for providing tax relief for the middle class president Obama mentions incomes up to $250,000. One statement from the Romney camp mentioned the middle class as being the income range of $100,000 to $250,000. To me both men are out of touch with the American worker. To me any income above $100,000 places you in the upper class. My wife and I for many years considered ourselves middle classs and we have only just recently reached the median income in our state which is a little over $50,000. We would be ecstatic making $100,000. The problem in defining the middle class is because a true middle class is fast disappearing. We have a large segment of America making a ton of money. We have another very large segment of our population which is fast being forced into economic servitude. We only have to look at the lines at Starbucks and the lines at the food pantries for evidence of this; both lines are extremely long. Many are living in nice homes in the suburbs, have two or three cars, take vacations and send their kids to college. Others are working two or three part-time jobs just trying to survive. My wife and I now consider ourselves an endangered species - the last of the middle class.

deserthackberry's picture
deserthackberry - Sep 22, 2012

Where I'm originally from, $50K probably wouldn't be enough to rent a home, let alone own one, even since the housing bubble burst, and I'm not from either coast. That's another big economic gap in our country: In addition to the "wealth gap", there are regional gaps, even within the same state. I now live in Texas, where there are some towns where a nice 3 bedroom in a nice neighborhood rents for $700-$900, and others where it costs twice that.

I thought my family was middle class growing up in the 70s. My parents owned a home, my mother didn't go back to work until we were in school, and even then it was a low-paid clerical job. They were able to cover our basic medical, dental, and vision healthcare, mostly without insurance. Now, between their pensions and Social Security, they make more than I do, have paid off their mortgage, have been on cruises and nice vacations, and blow what's left at Indian casinos.

I've never achieved my childhood standard of living in adulthood, even with more technical education than my parents, much longer workweeks, much less vacation and sick time, and no pension. Deregulation, tax cuts, and trickle-down global economics have done a real number on our society.

Squirecd's picture
Squirecd - Sep 21, 2012

Good article. Just a correction. Thomas Paine was English.