Remember 2007 loans with no income verification.
Supposedly 31% of households are upper middle class, but how? Some are over leveraged and to get lying about their incomes.
Just a reasonable guess. We seen it before.
The consumption statements about the k economy involve 20% of households.
I’ve been wondering if there are significant differences when using net worth versus income. For example, my wife and I are in the 80th percentile for income but in the 97th percentile for net worth.
DB2
Yep.
A WSJ reporter covering the BRK annual meeting about 25 years ago looked at the way people were dressed and observed that, “This is the largest gathering of millionaires living on $30,000/yr.”
intercst
In Britain they use income, in America net worth.
Google AI:
In Britain, social status is historically linked to income and ancestral class, whereas in America, it is primarily measured by net worth and accumulated assets.
Cultural and Economic Differences
- Class vs. Cash: British social hierarchy is often tied to “old money” and hereditary background, which can outrank new wealth regardless of total assets.
- The “Tall Poppy” Syndrome: UK culture sometimes views overt displays of high net worth with skepticism or criticism, while American culture generally lauds and celebrates individual financial success.
- Wealth Composition:
- UK: Wealth is heavily concentrated in housing (40% of median household wealth) and private pensions (35%).
- US: Wealth is more driven by financial assets, particularly stock market equity, which is more than twice as high on average as in Britain.
- Income Inequality: The US has significantly higher income inequality than the UK. While the US has more millionaires, the UK actually has a higher median net worth per household, largely due to property values and widespread pension coverage.
- Economic Mobility: Studies suggest absolute income mobility is actually higher in the UK than in the US, despite the “American Dream” narrative.
In old Vienna middle class was being able to afford a maid.
AI Overview
In old Vienna, particularly during the late 19th and early 20th centuries (fin-de-siècle), employing at least one domestic servant was indeed a hallmark of middle-class respectability. This social structure, common across Europe at the time, allowed the urban middle class to distinguish themselves from working-class families and to emulate the lifestyles of the upper classes.
The Captain
Here’s how. Check out this graph that seems to confirm the 31% -
If you take that graph at face value, you’d have to think, “Whoa, maybe the trickle down is trickling down!”
But then…after you consider this chart -
You’ll notice that the income range for Upper middle class is much wider than the others. Why? Welp, according to their research, it’s because -
“To some extent, the thresholds defining these income classes are inherently arbitrary.”
I am remembering 2007.
