Upper class


Robert Kennedy, Jr. is a member of America’s upper class
- Further information: American upper class
This term is applied to a wide array of elites that exist in the United States. The term commonly includes all “blue bloods” (multi-generational wealth combined with leadership of high society) such as the Astor or Roosevelt families. There is disagreement over whether the “nouveau riche” should be included as members of the upper class or whether this term should exclusively be used for established families. Twentieth century sociologist W. Lloyd Warner divided the upper class into two sections: the “upper-upper class” and “lower-upper class”. The former includes established upper-class families while the latter includes those with great wealth. As there is no defined lower threshold for the upper class it is difficult, if not outright impossible, to determine the exact number or percentage of American households that could be identified as being members of the upper-class(es).
Income and wealth statistics may serve as a helpful guideline as they can be measured in a more objective manner. In 2005, approximately one and half percent (1.5%) of households in the United States had incomes exceeding $250,000 with the top 5% having incomes exceeding $157,000. Furthermore only 2.6% of household held assets (excluding home equity) of more than one-million dollars. One could therefore fall under the assumption that less than five percent of American society are members of rich households.
Members of the upper class control and own significant portions of the corporate America and may exercise indirect power through the investment of capital. In recent years the salaries and, especially, the potential wealth through stock options, has greatly increased for the “corporate elite”. Inherited wealth leading to idleness is held in low regard and people who have it usually have prestigious occupations.
Yet another important feature of the upper class is that of inherited privilege. While most Americans, including those in the upper-middle class need to actively maintain their status, upper class persons do not need to work in order to maintain their status. Status tends to be passed on from generation to generation without each generation having to re-certify its status. Overall, the upper class is the financially best compensated and one of the most influential socio-economic classes in American society.
Corporate elite


Steve Ballmer, chief executive officer of Microsoft, is a member of America’s corporate elite.
The high salaries and, especially, the potential wealth through stock options, has supported the term corporate elite. Top executives, including Chief Executive Officers, are among the financially best compensated occupations in the United States. The median annual earnings for a CEO in the United States were $140,350 (exceeding the income of more than 90% of U.S. households). The Wall Street Journal reports the median compensation for CEOs of 350 major corporations was $6,000,000 in 2005 with most the money coming from stock options. In New York City in 2005, the median income (including bonuses) of a corporate “chief operating officer” (the #2 job) was $377,000. The total compensation for a “top IT officer” in charge of information technology in New York City was $218,000. Thus even below the CEO level of top corporations, financial compensation will usually be sufficient to propel a households with a mere one income earner in the top 1%. In 2005 only 1.5% of American households had incomes above $250,000 with many reaching this level only through having two income earners.
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Top executives are among the highest paid workers in the U.S. economy. However, salary levels vary substantially depending on the level of managerial responsibility; length of service; and type, size, and location of the firm. For example, a top manager in a very large corporation can earn significantly more than a counterpart in a small firm.Median annual earnings of general and operations managers in May 2004 were $77,420. The middle 50% earned between $52,420 and $118,310. Because the specific responsibilities of general and operations managers vary significantly within industries, earnings also tend to vary considerably… the Median annual earnings of chief executives in May 2004 were $140,350; although chief executives in some industries earned considerably more… the median income of chief executive officers in the nonprofit sector was $88,006 in 2005, but some of the highest paid made more than $700,000. |
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—U.S. Department of Labor,[citation needed]
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Many politically powerful people make money before coming to office, but in general the political power elite have official incomes in the $150,000 to $185,000 range; members of Congress are paid $165,000, and are effectively required to have a residence in their district as well as one in Washington.
Middle class
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Main article: American middle class


Many teachers in the United states are in the middle class.
The middle class is perhaps the mostly vaguely defined of the social classes. The term can be used either to describe a relative elite of professionals and managers (also called the upper middle class) or it can be used to describe those in-between the extremes of wealth, disregarding considerable differences in income, culture, educational attainment, influence, and occupation. As with all the social classes in the U.S. there are no definite answers as to what is and what is not middle class. Sociologists such as Dennis Gilbert, James Henslin, William Thompson and Joseph Hickey have brought forth class models in which the middle class is divided into two sections that combined constitute 47% to 49% of the population. The upper middle or professional class constitutes the upper end of the middle class which consists of highly educated, well-paid professionals with considerable work autonomy. The lower end of the middle class, called either lower middle class or just middle class consists of semi-professionals, craftsmen and salesmen who often have just some college education and are more closely supervised.
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Everyone wants to believe they are middle class. For people on the bottom and the top of the wage scale the phrase connotes a certain Regular Joe cachet. But this eagerness to be part of the group has led the definition to be stretched like a bungee cord. |
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—Dante Chinni, the Christian Science Monitor, [28]
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Although income thresholds cannot be determined since social classes lack distinct boundaries and tend to overlap, sociologists and economist have put forth certain income figures they find indicative of middle class households. Sociologist Leonard Beeghley identifies a husband making roughly $57,000 and a wife making roughly $40,000 with a household income of roughly $97,000 as a typical middle class family. Sociologists William Thompson and Joseph Hickey identify household incomes between $35,000 and $75,000 as typical for the lower middle and $100,000 or more as typical for the upper middle class. Though it needs to be noted that household income distribution neither relfects standard of living nor class status with complete accuracy.
Upper middle


In the United States, scientists often belong to the upper middle class.
- Further information: American middle class#The Professional/Managerial middle class
This class consists of highly educated salaried professionals whose work is largely self-directed. Many have graduate degrees with educational attainment serving as the main distinguishing feature of this class. Household incomes commonly may exceed $100,000 (€65,866 or £50,413), with some smaller one-income earners household having incomes in the high 5-figure range. Salaries are commonly in the high five-figure range. Members of this class commonly hold advanced academic degrees and are often involved with professional organizations. Due to the nature of professional and managerial occupations, the upper middle class tends to have great influence over the course of society. Occupations which are essential to the forming of public opinion such as journalists, authors, commentators, professors, scientist and advertisers are largely upper middle class.[13] The very well educated, are seen as trend setters with movements such as anti-smoking movements, pro-fitness movement, organic food movement, environmentalism being largely indigenous to this particular socio-economic grouping. Education serves as perhaps the most important value and also the most dominant entry barrier of the upper middle class.
Sociologists such as Dennis Gilbert, Willam Thompson and Joseph Hickey estimate the upper middle class to constitute roughly 15% of the population (or roughly 1 in every 6.66 persons). The main hallmark and most distinguishing feature of this class is its high educational attainment. Using the 15% figure one may conclude that the American upper middle class consist of professionals making more than $67,500 (€44,468 or £34,029) who often, but not always, reside in households with a six figure income.
Traditional middle class
- Further information: Average Joe and American middle class#Statistical middle class
Those households more or less at the center of society may be referred to as being part of the American middle or middle-middle class in vernacular language use. In the academic models featured in this article, however, the middle class does not constitute a strong majority of the population. Those in the middle of the socio-economic strata – the proverbial Average Joe – are commonly in the area where the working and lower middle class overlap. The most prominent academic models split the middle class into two sections. Yet, it remains common for the term middle class to be applied for anyone in between either extreme of the socio-economic strata. The middle class is then often sub-divided into an upper-middle, middle-middle and lower-middle class. In colloquial descriptions of the class system the middle-middle class may described as consisting of those in the middle of the social strata. Politicians and news anchors such as Lou Dobbs can be seen using the term middle class in this manner, especially when discussing the middle class squeeze. The wide discrepancy between the academic models and public opinions that lump highly educated professionals together in the same class with secretaries, may lead to the conclusion that public opinion on the subject has become largely ambiguous.
Lower middle class
The lower middle class is, as the name implies, generally defined as those less privileged than the middle class. People in this class commonly work in supporting occupations and seldom hold advanced academic degrees. There is also considerable debate of whether or not this class is truly part of the middle class and whether or not its members should be identified as being working class or even poor instead of middle class.
Sociologists Dennis Gilbert, William Thompson and Joseph Hickey, however, only divide the middle class into two groups. In their class modes the middle class only consists of an upper and lower middle class. The upper middle class, as described above, constitutes roughly 15% of the population with highly educated white collar professionals who commonly have salaries in the high 5-figure range and household incomes in the low six figure range. Semi-professionals with Bachelor’s degrees and some college degrees constitute the lower middle class. Their class models show the lower middle class positioned slightly above the middle of the socio-economic strata. Those in blue and pink collar as well as clerical occupations are referred to as working class in these class models.
Working class


Wait staff at restaurants often belong to the working class
The working class in the United States is as vaguely defined as the middle class with whom it overlaps according to some definitions. Sociologists estimate that anywhere from 32% to 45% of households are working class. While some might argue that the working class is synonymous with the lower middle class, it may also be argued that the working class constitutes the majority of the American population (or the “silent majority”). A distinctive feature of this class may include that fact that workers from this class merely take orders and are neither compensated for their ideas nor are they involved in the decision making process of the organization for which they work. Yet another more dated definition is that the working class commonly consists of blue-collar workers, while non-professional white collar workers are lower middle class. The guideline stating that working class workers are not paid to think, but rather perform tasks, persists however through many ideologies regarding this class. Much like the lower middle class (which may be the same class according to some theories) the working class has little economic security and is extremely susceptible to fluctuations in the economy. Out-sourcing and cost-cutting related lay-offs are much more a pressing issues for persons of this class, than in the higher classes.
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Laborers, who must sell themselves piecemeal, are a commodity, like every other article of commerce, and are consequently exposed to… all the fluctuations of the market… owing to the… division of labor, the work of proletarians has lost all individual character… the workman… becomes an appendage of the… easily acquired knack, that is required of him. |
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—Karl Marx, 1848
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While Karl Marx’s statement may be over one-hundred fifty years old, it still related to modern society in that working class persons are very much prone to economic downturns. While the actual persons are not a commodity themselves, their labor is. Labor is one of the primary factors of production alongside, land, capital, and entrepreneurship. Unlike professionals, who are paid to conceptualize, create, think, and advise, working class employees usually complete assigned tasks, as they often lack the proper training necessary for more influential positions. Today, however, this division of labor is largely due to the fact that the direction of resources requires expertise that often cannot be gained without a college education. As working class persons tend to lack higher education they are commonly not qualified to design, create, or advise. Thus today’s market labor division arose from necessity not political reasons. It should also be noted, that the modern working class works less than the upper middle class or the top 5%. While 81% of persons in the top quintile worked more than fifty hours a week, only two-thirds of those in the second quintile worked more than fifty hours a week.
Lower class


A homeless man in Anchorage, Alaska
The term lower class is commonly applied to those at the bottom of the social hierarchy. Definitions of this term vary greatly. While Lloyd Warner found the vast majority of the American population to be in either the upper-lower class or lower-lower class in 1949, modern-day experts such as Michael Zweig, an economist for SUNY–Stony Brook, argue that the working class constitutes most of the population. Dennis Gilbert places 13% of households among the “working poor” with 12% being in the “underclass”.”Thompson & Hickey place roughly 17% to 20% of households in the lower classes. The lower classes constituting roughly a fifth to a quarter of American society consists mainly of low-rung retail and service workers as well as the frequently unemployed and those not able to work. Overall, 13% of the population fall below the poverty threshold. Hunger and food insecurity were present in the lives of 3.9% of American households, while roughly twenty-five million Americans (ca. 9%) participated in the food stamp program.