I’m back trying to rescue my blog from falling off the face of the earth, in terms of new posts anyway. I’m still busy plugging away at my never ending home renos, so again please excuse the lack of posts lately. I hope to be back to a more frequent posting schedule in mid June. This is an article I drafted up about 4 months ago, and by the time I was done with it I wasn’t that excited about it. But since it was 99% done here you go, please let me know your thoughts.
In some sort of recent announcement by our Finance Minister, he declared that middle class/income families earn up to 120K per year. Link here: http://www.cbc.ca/news/politics/middle-class-families-earn-up-to-120k-a-year-feds-say-1.2932996
There was much fuss about this in the comment section, almost always my favorite part of online articles. Most of the comments I saw seem to think this was a low figure, meaning middle class would seem to be more in the 130-150K range. There were also comments about factors such as if you live in an expensive city, or if you have kids or not.
So lets figure this out. Generally, very generally there is an upper class, middle class, and lower class all decided by an income range. The article states middle class families have incomes up to 120K. Lets save the middle class doesn’t exist debate for another day while we resolve this first.
A couple of things to point out, this is a federal statement, so it involves the whole county. Don’t get me wrong, I couldn’t agree more that there is a big difference between a family making 120K living in T-dot, and one living in Summerside PEI. But where you live doesn’t come into play here. Also family size does not come into play either, that is, there is no middle class with 3 kids or lower class with 2 kids. We are just broadly talking about the 3 classes.
I’ll attack this by going to opposite route. What would be the definition of lower class? Around these parts, a full time min wage job would yield an income of about $23,000/year, if each spouse worked that we would a total income of 46K per year. This is obviously a lower class income. And really, you’re barely trying if you are still at min wage by the time you get to your late 20s. Where would the lower class end? This is the hard part, it starts at zero income and goes too…?. I’m thinking 70K, maybe 80K? It seems to me that a couple each earning 40k would certainly at least be on the threshold of breaking into the middle class. Lets go with 80K.
Now the upper class. Obviously there is no upper limit for this. So where would the upper class start? Two couples making 100K each is obviously upper class to me, 90K each, still upper class, 80K each, still upper class, 70K each…this seems about right to me, so 140K.
These very unscientific results seem to say the middle class would be a family income range of 80K to 140K, a $60,000 range. Seems about right, so I don’t see what all the hubbub is about if the upper end of the middle class is said to be 120K. I feel it is definitely in the ball park.
Growing up I feel I was in a middle class family, and I estimate my family’s income at about 50-60K back in the 1980s/90s, this would seem to work out, if inflation was 2% per year for 30 years from 1985 to 2015, this would be about 121K-145K in todays dollars…very much in line with the 120K middle class statement.
What class do you consider your family to be in? Do you think your class would be different if you live in a different part of the county, but with the same income?