What Middle Class are we trying to save?
Fri Jul 13, 2007 at 06:51:49 AM PDT
It's the mantra of progressives and democrats (gad, even Lou Dobbs) that the middle class is under attack and needs to be helped or saved or rescued or supported or ... something. Of course, my empathetic side stands up and cheers. The middle class is the bedrock of every modern, democratic society. It is the heartbeat of civility and the engine of creativity and productivity. It is the strongest protector of the weak and the greatest champion of collective optimism. In short, it is a really, really good thing.
But then my practical side kicks in and, being an unreconstructed academic, I am compelled to wonder: "What does 'middle class' mean?"
Being lazy, I go to the wikipedia article on the 'American Middle Class'. But its first sentence says: "The American middle class is an ambiguously defined social class in the United State" Not hopeful. Then, as I read more (Google has 11.4M hits for "middle class" so I may have missed a few), most writers lament the vagueness of their definitions. So, I figured why not explore the definition with a posse of brilliant Kossacks? So come over the fold and pitch in.
As I read the voluminous literature on the middle class, the most common definition focuses on a Middle Class Income. This is the definition that economists, policy wonks and the census bureau favor. There is some magic amount of money that qualifies you (like a country club fee) for membership in the 'club'. The only problem is that no one agrees on the number. They aren't sure agree whether it should be measured on individual or household income.
Whatever the number, most observers agree that the middle class income is under threat. Smart, motivated people around the world are thrilled to do our high paying jobs for less money. Contrary to some beliefs, we're typically not competing against oppressed or slave labor. Most foreign workers live where the cost of living is simply lower than ours. Many of the workers that underbid us are convinced that they are in the middle class in their economy - and they're hungry to stay there.
The Middle Class Job - The post-WWII era in the United States created an unprecedented surge in high wage jobs. America was the last industrial economy still standing. As the world rebuilt, America could make and sell pretty much anything it wanted. This rewarded the 'mass-production' manufacturing economy that America had developed prior to the war - and paid high wages even to unskilled factory workers. It gave American labor the clout to demand and get the Great Society. Long careers at one company. A retirement pension. Employer healthcare. Work hard, play by the rules, and everyone could be secure and have at least one vacation a year.
Unfortunately "middle class jobs" are also under threat. Its not just mean-spirited robber barons or sociopathic outsourcers that are killing them off. A lot of the damage is inflicted by technology and new ways to run businesses at the front lines. We can do tasks with machines that used to require skilled people. At the same time, the invention of the global supply chain and the Internet allows us to find products and services anywhere in the world. The new middle class job is really part of an emerging career path where a sequence of different jobs is punctuated by episodes of retraining and retooling. Not the same thing at all.
The Middle Class Education and Middle Class Culture - Many in the middle class have at least part of a university bachelor's degree. Its a chicken and egg thing. Having a degree greatly improves the chance for a middle class job, income, and lifestyle - and coming from a middle class home greatly improves the chance of having a university degree. Whatever the causality, the middle class education clearly shapes the middle class self-view and how it views the world, public affairs and life in general. It is a key feature of the middle class 'culture'. A lot of people who are between work or short of money still see themselves as middle class - because they think and act like members of the middle class.
Yet, a middle class education is becoming unaffordable to many in the middle class. If there are ways to preserve it, they won't be easy. It will take a lot of work and creativity. We need better analysis, better leadership and far less turf-protecting. Given the nature of our educational institutions, that's a longshot. Even if we succeed, preserving middle class education won't single-handedly solve the problem. Ultimately, an educated middle class may be smart enough to realize that they are falling out of the economic middle class.
A Middle Class Lifestyle - Yet another way to look at the middle class is to think of it as a 'lifestyle'. If I were to pick some signature aspects of that lifestyle, the list might look like the following:
- Steady work with reasonable assurance of future income.
- Good housing, personal security and ample nourishment.
- Some free time to care for the kids, enjoy personal pursuits and engage with broader society.
- Personal mobility and freedom to travel.
- Credible, effective health care.
- Education for the next generation.
- Some disposable income.
The lifestyle definition assumes both an income and an expense, but the absolute amounts don't matter. What matters is having essential amenities and enough disposable income to feel like life allows us some free will and control over our choices.
This is the definition that seems seem to me to be the most useful - and the most hopeful. It means that we can strengthen the middle class by focusing as hard on our expenses as we do on our incomes. Fortunately, our economy produces so much waste that there are plenty of opportunities to cut our costs and enhance our quality of life:
- Reform Health Care - We pay more and get less than any developed country.
- Reduce Energy Consumption - We consume more energy than any other country
- Shrink defense - We spend more on defense than the rest of the world put together.
- Change our diet - We eat more junk than any other developed country and it leads to more health costs.
- Reform Education - We spend a lot on education that frankly sucks.
- Reduce Travel - We travel farther and more often for less that virtually any other country (think suburbs).
A lifestyle-centric definition would allow us to look for low-cost ways to expand the critical amenities of our lifestyle. Instead of bringing more people to the middle class lifestyle, we might be able to the bring the middle class lifestyle to more people.
So its simple, right? We just have to reform all of our most wasteful activities, keep working real hard and we will sail gracefully off into the sunset? Right?
Right?
Questions:
- If we cut our costs for healthcare, defense, energy, transportation, food, etc., won't that hurt industries that currently offer a lot of 'middle class jobs'?
- How do we convince Americans to become more frugal when some Americans (with help from the MSM) are ostentatiously flaunting the wealth that they earn off of our lack of frugality?
- Is the middle class a useful concept or a confusing myth?
- What's your definition of the middle class?
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