The middle class refers to a class of people in the middle of a social hierarchy, often defined by occupation, income, education, or social status. The term has historically been associated with modernity, [1] capitalism and political debate. [2] Common definitions for the middle class range from the middle fifth of individuals on a nation's income ladder, to everyone but the poorest and wealthiest 20%. [3] Theories like "Paradox of Interest" use decile groups and wealth distribution data to determine the size and wealth share of the middle class. [4]
Terminology differs in the United States, where the term middle class describes people who in other countries would be described as working class.[ citation needed ]
There has been significant global middle-class growth over time. In February 2009, The Economist asserted that over half of the world's population belonged to the middle class, as a result of rapid growth in emerging countries. It characterized the middle class as having a reasonable amount of discretionary income and defined it as beginning at the point where people have roughly a third of their income left for discretionary spending after paying for basic food and shelter. [5]
The term "middle class" is first attested in James Bradshaw's 1745 pamphlet Scheme to prevent running Irish Wools to France. [6] [7] Another phrase used in early modern Europe was "the middling sort". [8] [9]
The term "middle class" has had several and sometimes contradictory meanings. Friedrich Engels saw the category as an intermediate social class between the nobility and the peasantry in late-feudalist society. [10] [ need quotation to verify ] While the nobility owned much of the countryside, and the peasantry worked it, a new bourgeoisie (literally "town-dwellers") arose around mercantile functions in the city. In France, the middle classes helped drive the French Revolution. [11] This "middle class" eventually overthrew the ruling monarchists of feudal society, thus becoming the new ruling class or bourgeoisie in the new capitalist-dominated societies. [12]
The modern usage of the term "middle-class", however, dates to the 1913 UK Registrar-General's report, in which the statistician T. H. C. Stevenson identified the middle class as those falling between the upper-class and the working-class. [13] The middle class includes: professionals, managers, and senior civil servants. The chief defining characteristic of membership in the middle-class is control of significant human capital while still being under the dominion of the elite upper class, who control much of the financial and legal capital in the world.
Within capitalism, "middle-class" initially referred to the bourgeoisie; later, with the further differentiation of classes as capitalist societies developed, the term came to be synonymous with the term petite bourgeoisie . The boom-and-bust cycles of capitalist economies result in the periodic (and more or less temporary) impoverishment and proletarianization of much of the petite bourgeois world, resulting in their moving back and forth between working-class and petite-bourgeois status. The typical modern definitions of "middle class" tend to ignore the fact that the classical petite-bourgeoisie is and has always been the owner of a small-to medium-sized business whose income is derived almost exclusively from the employment of workers; "middle class" came to refer to the combination of the labour aristocracy, professionals, and salaried, white-collar workers.
The size of the middle class depends on how it is defined, whether by education, wealth, environment of upbringing, social network, manners or values, etc. These are all related, but are far from deterministically dependent. The following factors are often ascribed in the literature on this topic to a "middle class:"[ by whom? ]
In the United States, by the end of the twentieth century, more people identified themselves as middle-class (with insignificant numbers identifying themselves as upper-class). [18] The Labour Party in the UK, which grew out of the organised labour movement and originally drew almost all of its support from the working-class, reinvented itself under Tony Blair in the 1990s as "New Labour", a party competing with the Conservative Party for the votes of the middle-class as well as those of the Labour Party's traditional group of voters – the working-class. Around 40% of British people consider themselves to be middle class, and this number has remained relatively stable over the last few decades. [19]
According to the OECD, the middle class refers to households with income between 75% and 200% of the median national income. [20]
Marxism defines social classes according to their relationship with the means of production. The main basis of social class division of Marxism: the possession of means of production, the role and position it plays in social labor organization (production process), the distribution of wealth and resources and the amount. Marxist writers have used the term middle class in various ways. [21] In the first sense, it is used for the bourgeoisie (the urban merchant and professional class) that arose between the aristocracy and the proletariat in the waning years of feudalism in the Marxist model. Vladimir Lenin stated that the "peasantry ... in Russia constitute eight- or nine-tenths of the petty bourgeoisie". [22] [23] However, in modern developed countries, Marxist writers define the petite bourgeoisie as primarily comprising (as the name implies) owners of small to medium-sized businesses, who derive their income from the exploitation of wage-laborers (and who are in turn exploited by the "big" bourgeoisie i.e. bankers, owners of large corporate trusts, etc.) as well as the highly educated professional class of doctors, engineers, architects, lawyers, university professors, salaried middle-management of capitalist enterprises of all sizes, etc. – as the "middle class" which stands between the ruling capitalist "owners of the means of production" and the working class (whose income is derived solely from hourly wages).
Pioneer 20th century American Marxist theoretician Louis C. Fraina (Lewis Corey) defined the middle class as "the class of independent small enterprisers, owners of productive property from which a livelihood is derived". [24] From Fraina's perspective, this social category included "propertied farmers" but not propertyless tenant farmers. Middle class also included salaried managerial and supervisory employees but not "the masses of propertyless, dependent salaried employees. [24] Fraina speculated that the entire category of salaried employees might be adequately described as a "new middle class" in economic terms, although this remained a social grouping in which "most of whose members are a new proletariat." [24]
In 1977 Barbara Ehrenreich and John Ehrenreich defined a new class in the United States as "salaried mental workers who do not own the means of production and whose major function in the social division of labor ... [is] ... the reproduction of capitalist culture and capitalist class relations;" the Ehrenreichs named this group the "professional–managerial class". [25] This group of middle-class professionals is distinguished from other social classes by their training and education (typically business qualifications and university degrees), [26] with example occupations including academics and teachers, social workers, engineers, accountants, managers, nurses, and middle-level administrators. [27] The Ehrenreichs developed their definition from studies by André Gorz, Serge Mallet, and others, of a "new working class," which, despite education and a perception of themselves as middle class, were part of the working class because they did not own the means of production, and were wage earners paid to produce a piece of capital. [28] The professional–managerial class seek higher rank status and salaries [29] and tend to have incomes above the average for their country. [30]
Modern definitions of the term "middle class" are often politically motivated and vary according to the exigencies of political purpose which they were conceived to serve in the first place as well as due to the multiplicity of more- or less-scientific methods used to measure and compare wealth between modern advanced industrial states, where poverty is relatively low and the distribution of wealth more egalitarian in a relative sense, and in developing countries, where poverty and a profoundly unequal distribution of wealth crush the vast majority of the population. Many of these methods of comparison have been harshly criticised; for example, economist Thomas Piketty, in his book Capital in the Twenty-First Century , describes one of the most commonly used comparative measures of wealth across the globe, the Gini coefficient, as being an example of "synthetic indices ... which mix very different things, such as inequality with respect to labor and capital, so that it is impossible to distinguish clearly among the multiple dimensions of inequality and the various mechanisms at work." [31]
In February 2009, The Economist asserted that over half the world's population now belongs to the middle class, as a result of rapid growth in emerging countries. It characterized the middle class as having a reasonable amount of discretionary income, so that they do not live from hand-to-mouth as the poor do, and defined it as beginning at the point where people have roughly a third of their income left for discretionary spending after paying for basic food and shelter. This allows people to buy consumer goods, improve their health care, and provide for their children's education. Most of the emerging middle class consists of people who are middle class by the standards of the developing world but not the developed one, since their money incomes do not match developed country levels, but the percentage of it which is discretionary does. By this definition, the number of middle-class people in Asia exceeded that in the West sometime around 2007 or 2008. [32]
The Economist's article pointed out that in many emerging countries, the middle class has not grown incrementally but explosively. The point at which the poor start entering the middle class by the millions is alleged to be the time when poor countries get the maximum benefit from cheap labour through international trade, before they price themselves out of world markets for cheap goods. It is also a period of rapid urbanization, when subsistence farmers abandon marginal farms to work in factories, resulting in a several-fold increase in their economic productivity before their wages catch up to international levels. That stage was reached in China sometime between 1990 and 2005, when the Chinese "middle class" grew from 15% to 62% of the population and is just being reached in India now.
The Economist predicted that surge across the poverty line should continue for a couple of decades and the global middle class will grow exponentially between now and 2030. Based on the rapid growth, scholars expect the global middle class to be the driving force for sustainable development. This assumption, however, is contested (see below). [33]
As the American middle class is estimated by some researchers to comprise approximately 45% of the population, [34] [35] [36] The Economist's article would put the size of the American middle class below the world average. This difference is due to the extreme difference in definitions between The Economist's and many other models.[ discuss ]
In 2010, a working paper by the OECD asserted that 1.8 billion people were now members of the global "middle class". [37] Credit Suisse's Global Wealth Report 2014, released in October 2014, estimated that one billion adults belonged to the "middle class," with wealth anywhere between the range of $10,000–$100,000. [38]
According to a study carried out by the Pew Research Center, a combined 16% of the world's population in 2011 were "upper-middle income" and "upper income". [39]
An April 2019 OECD report said that the millennial generation is being pushed out of the middle class throughout the Western world. [40]
Since the beginning of the 21st century, China's middle class has grown by significant margins. According to the Center for Strategic and International Studies, by 2013, some 420 million people, or 31%, of the Chinese population qualified as middle class. [41] Based on the World Bank definition of middle class as those having with daily spending between $10 and $50 per day, nearly 40% of the Chinese population were considered middle class as of 2017. [42]
China's middle class represents a significant market force with effects extending beyond its borders. The promise of increased prosperity and a consumer society has been a driving force behind this growth, while also suggesting the potential for political changes similar to those seen in Europe and North America. However, it's important to note that the Chinese middle class differs substantially from its Western counterparts. Despite its growth, it remains a relatively small group profoundly joined with the Chinese state. This unique relationship challenges assumptions about its role in political change. Criticisms from this demographic often center on improving efficiency and social justice within the existing political framework, rather than advocating for a regime change. [43]
Estimates vary widely on the number of middle-class people in India. A 1983 article put the Indian middle class as somewhere between 70 and 100 million. [44] According to one study the middle class in India stood at between 60 and 80 million by 1990. [45] According to The Economist, 78 million of India's population are considered middle class as of 2017, if defined using the cutoff of those making more than $10 per day, a standard used by the India's National Council of Applied Economic Research. [46] If including those with incomes between $2 and $10 per day, the number increases to 604 million. This was termed by researchers as the "new middle class". [47] Measures considered include geography, lifestyle, income, and education. The World Inequality Report in 2018 further concluded that elites (i.e. the top 10%) are accumulating wealth at a greater rate than the middle class, that rather than growing, India's middle class may be shrinking in size. [46]
According to a 2014 study by Standard Bank economist Simon Freemantle, a total of 15.3 million households in 11 surveyed nations of Africa are middle class: Angola, Ethiopia, Ghana, Kenya, Mozambique, Nigeria, South Sudan, Sudan, Tanzania, Uganda, and Zambia. [48] In South Africa, a report conducted by the Institute for Race Relations in 2015 [49] estimated that between 10% and 20% of South Africans are middle class, based on various criteria. [50] An earlier study estimated that in 2008 21.3% of South Africans were members of the middle class. [51]
A study by EIU Canback indicates 90% of Africans fall below an income of $10 a day. The proportion of Africans in the $10–$20 middle class (excluding South Africa), rose from 4.4% to only 6.2% between 2004 and 2014. Over the same period, the proportion of "upper middle class" income ($20–$50 a day) went from 1.4% to 2.3%. [52]
According to a 2014 study by the German Development Institute, the middle class of Sub-Saharan Africa rose from 14 million to 31 million people between 1990 and 2010. [53]
Over the years estimates on the size of the Latin America's middle class have varied. A 1960 study stated that the middle strata in Latin America as a whole, exclusive of Indians, constituted just under 20% of the national society. [54] A 1964 study estimated that 45 million Latin Americans belonged to the urban middle class while 15 million to the urban well-to-do and 8 million to the rural middle class and well-to-do. [55] In Brazil, according to one estimate, in 1970 the lower middle class comprised 12% of the population, while the upper middle class comprised 3%. [56] In the mid-1970s it was estimated by one authority that the Brazilian middle class comprised between 15 and 25% of the population. [57] A 1969 economic survey estimated that 15% of Brazilians belonged to the middle class. [58] By 1970, according to one study, the middle class of Argentina comprised 38% of the economically active population, compared with 19% in Brazil and 24% in Mexico. [59] A 1975 study on Mexico estimated that the middle class in 1968 (defined as families earning between 2,000 and 5,000 pesos annually) comprised 36.4% of the population, while the upper class (defined as families earning over 5,000 pesos annually) comprised 9.4% of the population and the lower class (defined as families earning less than 2,000 pesos annually) comprised 53.9% of the population. [60]
According to a study by the World Bank, the number of Latin Americans who are middle class rose from 103 million to 152 million between 2003 and 2009. [61]
In 2012, the "middle class" in Russia was estimated as 15% of the whole population.[ citation needed ] Due to sustainable growth, the pre-crisis [62] level was exceeded. [63] In 2015, research from the Russian Academy of Sciences estimated that around 15% of the Russian population are "firmly middle class", while around another 25% are "on the periphery". [64]
A social class or social stratum is a grouping of people into a set of hierarchical social categories, the most common being the working class, middle class, and upper class. Membership of a social class can for example be dependent on education, wealth, occupation, income, and belonging to a particular subculture or social network.
In political philosophy, the means of production refers to the generally necessary assets and resources that enable a society to engage in production. While the exact resources encompassed in the term may vary, it is widely agreed to include the classical factors of production as well as the general infrastructure and capital goods necessary to reproduce stable levels of productivity. It can also be used as an abbreviation of the "means of production and distribution" which additionally includes the logistical distribution and delivery of products, generally through distributors; or as an abbreviation of the "means of production, distribution, and exchange" which further includes the exchange of distributed products, generally to consumers.
The bourgeoisie are a class of business owners, merchants and wealthy people, in general, which emerged in the Late Middle Ages, originally as a "middle class" between peasantry and aristocracy. They are traditionally contrasted with the proletariat by their wealth, political power, and education, as well as their access to and control of cultural, social, and financial capital.
Private property is a legal designation for the ownership of property by non-governmental legal entities. Private property is distinguishable from public property, which is owned by a state entity, and from collective or cooperative property, which is owned by one or more non-governmental entities. John Locke described private property as a Natural Law principle arguing that when a person mixes their labor with nature, the labor enters the object conferring individual ownership.
Wealth is the abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions. This includes the core meaning as held in the originating Old English word weal, which is from an Indo-European word stem. The modern concept of wealth is of significance in all areas of economics, and clearly so for growth economics and development economics, yet the meaning of wealth is context-dependent. A person possessing a substantial net worth is known as wealthy. Net worth is defined as the current value of one's assets less liabilities.
Social class in the United States refers to the idea of grouping Americans by some measure of social status, typically by economic status. However, it could also refer to social status and/or location. The idea that American society can be divided into social classes is disputed, and there are many competing class systems.
Upper class in modern societies is the social class composed of people who hold the highest social status, usually are the wealthiest members of class society, and wield the greatest political power. According to this view, the upper class is generally distinguished by immense wealth which is passed on from generation to generation. Prior to the 20th century, the emphasis was on aristocracy, which emphasized generations of inherited noble status, not just recent wealth.
Surplus product is a concept theorised by Karl Marx in his critique of political economy. Roughly speaking, it is the extra goods produced above the amount needed for a community of workers to survive at its current standard of living. Marx first began to work out his idea of surplus product in his 1844 notes on James Mill's Elements of political economy.
In Marxism, proletarianization is the social process whereby people move from being either an employer, unemployed or self-employed, to being employed as wage labor by an employer.
Reserve army of labour is a concept in Karl Marx's critique of political economy. It refers to the unemployed and underemployed in capitalist society. It is synonymous with "industrial reserve army" or "relative surplus population", except that the unemployed can be defined as those actually looking for work and that the relative surplus population also includes people unable to work. The use of the word "army" refers to the workers being conscripted and regimented in the workplace in a hierarchy under the command or authority of the owners of capital.
Though the American middle class does not have a definitive definition, contemporary social scientists have put forward several ostensibly congruent theories on it. Depending on the class model used, the middle class constitutes anywhere from 25% to 75% of households.
Affluence refers to an individual's or household's economical and financial advantage in comparison to others. It may be assessed through either income or wealth.
Income in India discusses the financial state in India. With rising economic growth and prosperity, India's income is also rising rapidly. As an overview, India's per capita net national income or NNI was around Rs. 98,374 in 2022-23. The per-capita income is a crude indicator of the prosperity of a country. In contrast, the gross national income at constant prices stood at over 128 trillion rupees. According to Pew Research Center in 2021, India has roughly 66 million middle-income individuals, 16 million upper-middle-income individuals, while barely 2 million belong to the high-income group. According to The Economist, 78 million of India's population are considered middle class as of 2017, if defined using the cutoff of those making more than $10 per day, a standard used by the India's National Council of Applied Economic Research.
The inequality of wealth has substantially increased in the United States in recent decades. Wealth commonly includes the values of any homes, automobiles, personal valuables, businesses, savings, and investments, as well as any associated debts.
The Gilbert model was developed by Dennis Gilbert as a means of a more effective way of classifying people in a given society into social classes.
Marxian class theory asserts that an individual's position within a class hierarchy is determined by their role in the production process, and argues that political and ideological consciousness is determined by class position. A class is those who share common economic interests, are conscious of those interests, and engage in collective action which advances those interests. Within Marxian class theory, the structure of the production process forms the basis of class construction.
In sociology, the upper middle class of the United States is the social group constituted by higher-status members of the middle class in American society. This is in contrast to the term lower middle class, which refers to the group at the opposite end of the middle class scale. There is considerable debate as to how the upper middle class might be defined. According to Max Weber, the upper middle class consists of well-educated professionals with graduate degrees and comfortable incomes.
Redistribution of income and wealth is the transfer of income and wealth from some individuals to others through a social mechanism such as taxation, welfare, public services, land reform, monetary policies, confiscation, divorce or tort law. The term typically refers to redistribution on an economy-wide basis rather than between selected individuals.
The working class is a subset of employees who are compensated with wage or salary-based contracts, whose exact membership varies from definition to definition. Members of the working class rely primarily upon earnings from wage labour. Most common definitions of "working class" in use in the United States limit its membership to workers who hold blue-collar and pink-collar jobs, or whose income is insufficiently high to place them in the middle class, or both. However, socialists define "working class" to include all workers who fall into this category; thus, this definition can include almost all of the working population of industrialized economies.
Classical Marxism is the body of economic, philosophical, and sociological theories expounded by Karl Marx and Friedrich Engels in their works, as contrasted with orthodox Marxism, Marxism–Leninism, and autonomist Marxism which emerged after their deaths. The core concepts of classical Marxism include alienation, base and superstructure, class consciousness, class struggle, exploitation, historical materialism, ideology, revolution; and the forces, means, modes, and relations of production. Marx's political praxis, including his attempt to organize a professional revolutionary body in the First International, often served as an area of debate for subsequent theorists.
To be one of "the middling sort" in urban England in the late seventeenth or eighteenth century was to live a life tied, one way or another, to the world of commerce.
In particular, the, peasantry, who in Russia constitute eight- or nine-tenths of the petty bourgeoisie, are struggling primarily for land.
Russia is a country of the petty bourgeoisie, by far the greater part of the population belonging to this class.
Professional/Managerial Class.