Most Americans in the United States define themselves as being part of the middle class, but there are differing opinions of what that means.
President Barack Obama talks of “middle class tax cuts” that would apply to families who earn up to $250,000, which would cover all but the top 3 percent of U.S. households.
Many Republicans point out that location and expenses can affect class status — a family earning $250,000 in a high-cost location like Manhattan, for example, may not consider themselves rich.
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Economists say there is no specific criteria for defining the middle class, though income level is the most common way of breaking it down.
Here are some of the ways the middle class is defined:
Economists generally align the group according to earnings, even if there is no standard established range.
“Most people tend to think of themselves as middle class unless they’re [billionaire investor] Warren Buffett or really poor,” said J.D. Foster, an economist and senior fellow at the Heritage Foundation, a conservative think tank.
Foster regards the upper 20 percent of earners as “upper income” and the lower 20 percent as “lower income.” He regards the 60 percent in the middle as middle class, with household incomes roughly between $25,000 and $100,000.
Median household income in the United States was $52,175 in 2008, according to the U.S. Census Bureau.
Education can be another defining factor, as it is often correlated with income.
Some academics divide the middle class into an upper bracket that includes professionals and middle managers who hold postgraduate degrees and often earn more than $100,000 and a less affluent lower middle class that typically has some college education with household incomes around the national median. These two groups account for roughly 45 percent of the population.
Blue-collar and clerical workers in the working class typically have a high school education, and many may describe themselves as “middle class” even though their incomes may be a fraction of those earned by professionals.