Defining Middle Class?

" Strikes the heart of the middle class. Homes and reinvest our savings and build our alliance raise our families. -- There you have president Obama speaking yesterday in Phoenix and describing about the middle class it is not just the Democrats Republicans to. Like to throw that -- around in fact house Republican leader John Bader speaking two days ago saying. This in his ability quote raw deal for American families providing just the dollar ten per -- relief for workers while -- every family would 9400 dollars in added debt. The paper special interest projects import growth projects it will do little to create jobs and here you go will do more harm than good the middle class families. And our economy so both political parties like to throw that term around middle class. What exactly is the middle class whose then it. Well doctor Anil -- has done a lot of work on this is an economist at a professor at cal state Fullerton go titans bodily spent some time there. Doctor Perry thank you very much for joining us that is David Ryan. -- you're numbers were very interesting is -- a way to classify a national. Middle class or is it only going to be regional 'cause what might be middle class in New York is probably not middle class in Iowa. --"

" It varies depending on the cost of living of course. But bidder is a certain ways I think we can think of middle class families simply that is in the middle from the top and the bottom. But I think -- better to maybe if further subdivided middle to better understand. The situation each subgroup. You know middle class could be an upper middle class and can be divided into and lower middle class I think that's a better way through. Analyze the situation that's currently. Is facing our country --"

" Well let's try to narrow -- down a little -- doctor brad I guess there is I've seen some definitions and actually when your slide from your presentation which I came across yesterday -- we found yet. Describe it is maybe eighty to a 120%. Of the national median wage so so let's try to narrow it down -- have sort of lower and upper middle class what would that be what what income levels could people in America say. I'm truly middle class."

" If you look at their new vigil median income for the nation is about 50000 dollars. If you look at how folded median income is about seven to 530000 dollars if you take permanent 45% of that is about 120000. Of their about. That would be sort of the range from anywhere from. 35. Thousand dollars about a 13550000. Dollars would be the broad range of the middle class so called middle class. How of the middle class being impacted all of these different groups during this downturn -- in this recession. Verify if I think is being referred more than any other -- the other homeowners through the workers. Miller moved will be one that is characterized by some college education. Upper middle class is -- of the most people would have them both graduates. Education and high income level. But all of these people. Because of loss of home equity because of loss and their 41 -- There well -- being affected up and down but I think income and income and job. In the middle in the lower middle middle class of want to cause -- Though that the ones that are being heard the words."

" Yeah because we hear the party probably heard the president sound -- and we also quoted Republican John Bader. Politicians love to throw that term around you know the trying to appeal -- brought the swap the population. But if you have a doctorate degree. Yeah -- and let's say your wife for your husband also has one you might be making a buck 5200000. A year combined. You'd still be I guess in the middle class of those with a similar degree."

" That's out of it I would call upper middle class. And those people of course are affected by this crisis but this film most of them probably have their job or maybe one person about the job others still had a job. They can continue for some time -- that status but if you look at the lower middle clogged with people I'm making under 50000 dollars. Profoundly. And is day one person even loses a job it becomes very difficult to survive in this month."

" There's there's been so much talk in recent years about the widening wealth gap in the middle class again we're gonna read that term. Being disconnected and left behind and -- out but wit the collapse. In the wealthy in assets at the higher -- are we going to see a narrowing of that wealth gap and it paid the people on the upper and who were now point the finger that. Big -- going to be worth as much money and -- we get back to a more reasonable situation."

" Upper income five there while this fall much higher than a little -- That even would deterioration in fassel well there will -- huge disparity between up or. Process rich. Upper middle class and the lower and I don't think that gap is going to narrow because of this crisis. If anything it may even increase because most of the jobs that have -- laws a lot of development is being is in the middle who go okay --"

" Doctor you bring up an interesting point because we again we often hear politicians say you know the wealth gap between the rich and the poor has grown and they love to throw that around. I was reading Malcolm Gladwell new book and you that I guess author management consultant -- find himself out -- And it he tried to make the point that actually the wealth gap. Between the pour in the middle class hasn't grown that much and even between the middle class and -- upper middle class sort of -- wealthy hasn't grown that much. That the biggest gap has grown between the wealthy and the super rich. Is he is he right it'd -- news it would seem that politicians are kind of misleading us little bit about where the different wealth gaps are growing."

" It is true that that top income classes rich and upper middle popular you know five. And gained. Much more -- percent this year for the last ten to fifteen years from the prosperity of the country. And it on the growth and financial instruments and and all that similar kind of activities. So you're right I I believe you're right that vote up or. And no possible Gladwell I had wells right -- pet death that I have done much better in the last a few years. Then the lower middle class in the middle middle class."

" Doctor one last -- do you worry that we're about to undergo a seismic shift may be in our society here in the United States. Because the backlash to the excesses of the last spectator today."

" There's no question about we have a huge problem. Reporting the middle class I'm talking about the broad range of middle class. Whether they're losing homes they're losing their equity in their 401K plans. And they're losing job I think our biggest challenge right now is really to support that. Middle class because they're the ones that are the backbone of the country we talk about huge. Household consumption which is the basis for the economic growth. That is made up of really the middle class and the lower middle class and the poor. Not the rich I think that -- still a continuing to spend basically at the level they were spending before they have -- have cut back from. But but the most of the consumption for the country culled from the -- and that it would need to be supported right now. Doctor Neil Perry cal state fallen professor interest -- stuff doctor we do appreciate it thank you very much."