Fact-checked by Grok 2 weeks ago

Middle class

The middle class refers to a socioeconomic positioned between the lower and upper classes, typically comprising households with disposable incomes ranging from 75% to 200% of the national , enabling relative financial security, access to , homeownership, and . This group is defined empirically through income bands adjusted for household size and local costs, though definitions vary slightly across institutions, with some using two-thirds to double the . Key characteristics include stable professional or white-collar employment, higher , and cultural norms emphasizing deferred gratification and . A robust middle class underpins by driving consumer demand, fostering through investments, and promoting political stability via broad-based prosperity. In developed economies like the , its share has contracted from 61% of households in 1971 to 51% in 2023, reflecting wage stagnation for non-college graduates, rising housing costs, and income polarization toward high-skill sectors. Conversely, globally the middle class has expanded dramatically, surpassing 4 billion people in 2025 for the first time, primarily due to industrialization and in and other emerging regions. Notable controversies surround its measurement and perceived erosion, with subjective self-identification remaining steady at around 54% in the U.S. despite objective declines, highlighting a disconnect between aspirations and metrics. Job —growth in low- and high-wage roles at the expense of middling occupations—has intensified pressures, contributing to debates over , technological disruption, and policy responses like and trade adjustment. Historically emerging during industrialization, the middle class symbolizes meritocratic achievement but faces challenges from intergenerational mobility slowdowns and wealth concentration.

Definitions and Characteristics

Economic Criteria

The middle class is most commonly defined economically through income relative to the national or regional median household income, capturing a group's position between lower- and upper-income extremes. In the United States, the Pew Research Center delineates middle-income households as those earning between two-thirds and double the median household income, adjusted for household size and local cost of living; for a three-person household in 2022, this ranged from approximately $56,600 to $169,800 annually. Internationally, the Organisation for Economic Co-operation and Development (OECD) employs a similar relative threshold of 75% to 200% of median disposable income, encompassing about 61% of the population across member countries on average. These relative measures prioritize purchasing power and lifestyle sustainability over absolute dollars, reflecting economic security amid varying costs of housing, education, and healthcare. Wealth accumulation serves as a complementary economic criterion, emphasizing rather than flow of , though it is less uniformly standardized. Middle-class households typically hold assets such as , savings, and moderate investments, enabling against shocks like or medical expenses, while lacking the diversified portfolios of the . For instance, U.S. data indicate middle-class often falls between $100,000 and $1 million, sufficient for property ownership but vulnerable to burdens; this contrasts with lower classes holding minimal assets and upper classes exceeding multimillion-dollar thresholds. Empirical analyses highlight that wealth disparities have widened, with the top 10% controlling nearly half of total wealth in nations, underscoring how alone may not sustain middle-class status without asset growth. Occupational status provides an indirect economic proxy, linking to stable earnings and benefits rather than manual or precarious labor. Middle-class roles predominate in , managerial, and white-collar fields—such as engineers, teachers, and mid-level administrators—yielding predictable salaries with employer-sponsored and pensions. Studies affirm that such s correlate with middle- brackets, as or skilled trades can qualify if generating equivalent , though gig or service-sector work often aligns with working-class due to volatility. Discrepancies arise when high-skill jobs yield upper-middle incomes, prompting hybrid definitions that integrate with for precision.
CriterionKey MeasureExample Threshold (U.S., 2022-2024 data)Source
Income67%-200% of , adjusted for size$56,600-169,800 (3-person household)
Wealth enabling home ownership and savings$100,000-1,000,000 analyses
OccupationProfessional/managerial roles with benefitsSalaried positions in tech, education, administration
These criteria vary by context, with areas requiring higher thresholds due to elevated living costs—e.g., a middle-class in high-cost U.S. metros like may need $100,000+ annually—while relative definitions mitigate absolute poverty biases in global comparisons.

Sociological and Cultural Aspects

Sociologically, the middle class is often characterized not solely by income thresholds but by occupational status, , and , which distinguish it from working-class and groups. Empirical studies indicate that individuals in middle-class occupations, such as professionals and managers, self-identify as middle class based on perceived social standing rather than purely financial metrics, reflecting a subjective with norms of and . This perspective aligns with structural analyses showing the middle class as a buffer stratum that emerged from historical shifts toward merit-based hierarchies, fostering social cohesion through shared values like deferred gratification and institutional trust. Culturally, middle-class norms emphasize independence, self-expression, and long-term planning, contrasting with working-class tendencies toward interdependence and immediate communal obligations. Research on reveals that middle-class environments cultivate cognitive and behavioral patterns oriented toward personal achievement and , such as prioritizing individual opinions in and viewing as controllable through effort. For instance, middle-class families typically invest in children's and extracurriculars to signal cultural refinement, perpetuating intergenerational mobility via habits like reading and highbrow activities, though upwardly mobile individuals may retain some working-class cultural residues. These practices, rooted in Protestant-influenced of and thrift, underpin middle-class contributions to and consumption but can exacerbate when mismatched with economic realities. In social interactions, cues like speech patterns, clothing, and manners serve as proxies for middle-class affiliation, enabling rapid class signaling in diverse settings. Studies confirm that observers rely on these subtle indicators over overt wealth displays to categorize individuals, reinforcing middle-class boundaries through everyday . This cultural framework supports societal functions like political moderation and economic prudence, as middle-class values correlate with higher savings rates and entrepreneurial risk-taking, though critiques note potential overemphasis on credentialism amid stagnant wages. Overall, these aspects position the middle class as a culturally adaptive group, driving progress while vulnerable to erosion from and policy shifts.

Historical Origins and Evolution

Pre-Modern and Early Modern Periods

In ancient societies such as Greece and Rome, social structures were predominantly stratified between elites, often landowners or aristocrats, and the lower strata of laborers, slaves, or small farmers, with limited evidence of a distinct middle class characterized by independent property ownership, commercial activity, and social mobility. In Rome, the equestrians (equites), who possessed property valued at least at 400,000 sesterces and engaged in trade or public contracting, represented an intermediate group between the senatorial order and the plebeian masses, but their numbers were small and their status often precarious due to dependence on elite patronage. Similarly, in classical Greece, free citizens involved in manufacturing or commerce formed a business stratum, yet aristocratic disdain for manual labor and the prevalence of slavery constrained widespread middle-tier prosperity, resulting in polarized wealth distribution where a small elite controlled most resources. The emergence of a proto-middle class in occurred during the (circa 1000–1300 CE), driven by urban revival, agricultural surpluses, and expanded trade following the decline of feudal fragmentation. Merchant guilds, appearing as early as the in and , organized traders to secure monopolies, regulate markets, and negotiate privileges from lords, fostering wealth accumulation independent of noble birth. Craft guilds, proliferating from the 12th century in cities like and , grouped artisans such as weavers, blacksmiths, and bakers to control apprenticeships, quality standards, and prices, enabling master to achieve incomes rivaling minor nobles—e.g., an English craftsman in the might earn 3 to 16 pounds annually, sufficient for property ownership and guild hall investments. This burgher class, residing in chartered towns, gained legal protections through charters (e.g., Magna Carta's influence on borough liberties in 1215) and contributed to economic dynamism via fairs and networks, though their social ascent was checked by sumptuary laws and clerical suspicion of . In the early modern period (1500–1800), the bourgeoisie expanded through commercial revolutions, colonial trade, and proto-industrialization, transitioning from guild-bound artisans to a more fluid class of entrepreneurs and professionals. In Italian city-states like Venice and Florence by the 15th century, merchant families amassed fortunes via banking and Mediterranean commerce, exemplified by the Medici Bank's operations across Europe, which financed rulers while amassing capital for urban patronage. The influx of New World silver and Atlantic trade routes bolstered this group in ports like Amsterdam and London, where joint-stock companies such as the Dutch East India Company (founded 1602) enabled bourgeois investors to pool resources for high-risk ventures, yielding dividends that supported lifestyles blending commerce with cultural refinement. In Germany and France, territorial burghers maintained guild traditions while adapting to absolutist monarchies, leading urban elites—e.g., in southwestern German towns by the 16th century—who dominated local governance and tax farming, yet faced tensions with agrarian nobility over privileges. This period's bourgeois ethos emphasized thrift, diligence, and reinvestment, laying groundwork for capitalist expansion, though inequality persisted, with guild restrictions limiting entry and rural poverty contrasting urban gains.

Industrial Revolution and 19th Century

The Industrial Revolution, commencing in Britain around 1760 and accelerating through the early 19th century, engendered a nascent middle class of industrial capitalists, manufacturers, and merchants who amassed wealth via mechanized textile production, steam-powered machinery, and ironworks expansion. These entrepreneurs capitalized on technological innovations and legal enclosures of common lands, which facilitated capital accumulation and market-oriented agriculture, thereby enabling investment in factories and trade networks. This group's economic agency contrasted with aristocratic rent-seeking and proletarian wage labor, fostering a class defined by ownership of productive assets and commercial acumen rather than inherited titles. By 1851, Britain's middle class had expanded to roughly 1.5 million persons amid a total population of 21 million, incorporating not only industrialists but also professionals like physicians, attorneys, and engineers, alongside emerging clerical workers in burgeoning centers. stemmed from heightened demand for administrative and technical services in expanding industries, , and ports, with middle-class households deriving from salaries averaging £150–£300 annually for professionals—sufficient for suburban residences, domestic servants, and consumer goods unavailable to laborers earning under £50 yearly. This prioritized values of , , and moral rectitude, investing in private and to secure intergenerational status, though initial fortunes were unevenly distributed among early adopters in textiles and . The middle class's proliferation extended across and as industrialization diffused. In , post-1789 Revolutionary upheavals dismantled feudal barriers, allowing a of bankers, traders, and state functionaries to swell through Napoleonic-era and 19th-century booms, comprising perhaps 5–10% of the by mid-century via and . In the United States, from the 1870s onward, post-Civil War infrastructure like 200,000 miles of railroads by 1900 integrated national markets, spawning a middle class of corporate managers, engineers, and bureaucrats who leveraged immigrant labor and resource extraction in and to achieve homeownership rates exceeding 40% in urban areas by century's end. These developments hinged on institutional factors such as patent laws and contract enforcement, which rewarded over , though working-class pauperization underscored uneven gains from surges estimated at 1–2% annual GDP growth in leading economies.

20th Century Expansion and Post-War Boom

The expansion of the in the 20th century, particularly in the United States, stemmed from industrialization, , and rising that enabled broader access to consumer goods and homeownership. In 1914, Motor Company's introduction of the $5 daily wage—roughly double prevailing pay—allowed assembly-line workers to purchase automobiles, initiating a cycle of wage-driven consumption that lifted many into middle-income status. grew steadily through mid-century, with family incomes roughly doubling in -adjusted terms from the late to the early across the , as gains from technological adoption outpaced . This period saw the middle class evolve from a small to a majority socioeconomic group, characterized by stable in expanding sectors like and services. The post-World War II boom accelerated this trend, creating what economists term a "" society through sustained and policy supports. U.S. real GDP increased by approximately 37% from 1945 to 1960, driven by the release of wartime savings, factory reconversion to civilian output, and near-full employment with unemployment averaging under 5%. The Servicemen's Readjustment Act of 1944, known as the , provided low-interest home loans and education benefits to over 7.8 million veterans, boosting college enrollment by 238% from 1940 levels and enabling suburban expansion. Homeownership rates rose sharply from 43.6% in 1940 to 55% in 1950 and 61.9% in 1960, as federal guarantees facilitated mortgage access amid low interest rates and shortages. Contributing causal factors included America's unique postwar position—intact , global export dominance, and avoidance of reconstruction costs borne by —coupled with domestic elements like strong labor unions securing wage gains and high marginal tax rates on top incomes (over 90% from to 1963) that funded without stifling investment. Median household incomes nearly doubled during this era, with durable goods ownership surging: automobile ownership climbed from 54% of families in 1948 to 74% by 1959, reflecting middle-class affluence. By 1971, middle-income households comprised 61% of the U.S. adult population, a peak share before divergence in later decades. Similar patterns emerged in under aid, though U.S. growth outpaced due to its head start in consumer markets.

Theoretical Perspectives

Classical Liberal and Capitalist Views

Classical liberals, exemplified by , viewed the middle class—often described as the "middling ranks"—as essential to economic dynamism and moral improvement. In (1759), Smith praised the industry, frugality, and ambition of this group, arguing that their pursuit of gradual advancement through commerce and trade elevates societal productivity and virtue, contrasting with the idleness of the wealthy and the dependency of the poor. This perspective underpinned Smith's advocacy for free markets in (1776), where the division of labor and secure property rights enable middle-class artisans, merchants, and farmers to accumulate capital, spurring innovation and raising living standards across classes. Edmund Burke reinforced this by portraying the middle class as the foundation of stable governance and liberty. In Reflections on the Revolution in (1790), he extolled the "great middle" of society for embodying prudence, property ownership, and resistance to radical upheaval, positing that their exclusion from power—as occurred in revolutionary —destroys constitutional order. Burke's emphasis on organic social hierarchies positioned the middle orders as a counterbalance to aristocratic vice and proletarian unrest, preserving incremental reform over abstract . Alexis de Tocqueville extended these ideas in (1835–1840), observing that egalitarian conditions in the United States fostered a pervasive middle-class ethos of and commercial activity, which tempered democratic excesses like mob rule. He attributed America's relative stability to this class's dominance, where widespread property and moderate fortunes discouraged envy and promoted "self-interest rightly understood" as a . Capitalist thinkers like and built on this foundation, seeing the middle class as an outcome of unfettered markets and the . , in (1944), warned that socialist policies erode the middle class by undermining property rights and incentives, leading to centralized tyranny that the historically opposed. , in (1962), contended that competitive expands the middle class through voluntary exchange and minimal intervention, as evidenced by post-World War II prosperity in market-oriented economies, where median incomes rose alongside entrepreneurial opportunities. Both emphasized empirical correlations between economic and middle-class growth, rejecting redistribution as a causal driver of equity in favor of productivity gains from individual initiative.

Marxist Interpretations and Empirical Critiques

In Marxist theory, the middle class—primarily conceptualized as the petite bourgeoisie—comprises small-scale owners of the , such as independent artisans, shopkeepers, and minor employers, who rely on their own labor supplemented by limited hired help. posited that this stratum occupies an unstable intermediary position between the (wage laborers) and the large-scale (capitalists), exploiting workers on a minor scale while remaining vulnerable to capitalist competition. He anticipated its progressive dissolution through the concentration and centralization of capital, whereby successful petite bourgeois elements would accumulate enough to join the bourgeoisie, while the majority would be ruined and proletarianized, swelling the ranks of the industrial . This interpretation framed the as a historically transient "relic" , ideologically torn between sympathy for proletarian struggles and defense of , often aligning with reactionary forces to preserve its precarious status. Marx and Engels viewed it as lacking potential, prone to and moralism rather than , and ultimately doomed by the inexorable logic of capitalist accumulation that favors large-scale enterprise over small proprietorship. Later Marxists, such as Lenin, extended this analysis to agrarian petty producers, seeing them as obstacles to proletarian unless educated toward . Empirical evidence from 20th-century capitalist economies largely refutes these predictions of middle-class . , for example, the middle-class share of households expanded from under 30% in the early to a peak of 61% in 1971, driven by industrialization, , and economic policies that boosted real incomes by approximately 30% for middle-income groups between 1980 and 2018 alone, even accounting for demographic shifts. Globally, the middle class grew from about 1 billion people in 2000 to over 3.5 billion by 2020, predominantly in market-oriented economies, contradicting the expected into two antagonistic classes. Critiques highlight Marxism's underestimation of capitalism's capacity to generate new middle-class formations beyond the , including salaried professionals, technicians, and managers in expanding service and knowledge sectors, which absorbed surplus labor without full . in advanced economies rose steadily through and technological diffusion—factors Marx anticipated as proletarianizing but which instead democratized and skills, stabilizing society via widespread property ownership (e.g., U.S. homeownership rates climbing from 44% in 1940 to 69% by 2004). While recent Western trends show middle-class share contraction (e.g., to 50% in the U.S. by ), absolute living standards improved, and global data indicate no systemic disappearance, underscoring the theory's empirical shortfall in forecasting class dynamics amid adaptive institutions like welfare states and systems.

Professional-Managerial Class Concept

The (PMC) concept was introduced by Barbara and John Ehrenreich in their 1977 essay published in Radical America, describing a stratum of salaried mental workers who neither own the nor perform manual labor, but instead credentialed expertise to manage and rationalize capitalist production processes. The Ehrenreichs defined the PMC as encompassing professions in , , , , , and related fields, whose role involves reproducing divisions by overseeing labor, enforcing regulations, and aligning with capital's need for efficiency without direct ownership. This formulation emerged from analysis amid post-World War II expansion of white-collar employment, positioning the PMC as antagonistic to both the traditional and the , with interests vested in expanding state and corporate bureaucracies. Key characteristics of the PMC include advanced —typically requiring degrees or higher credentials—and incomes exceeding national s in most sectors, such as managers earning a of $104,280 annually in the U.S. as of 2022, though exceptions persist in underpaid fields like adjunct . Members derive status from , including mastery of technical knowledge and ideological frameworks that legitimize hierarchy, often leading to political orientations favoring regulatory interventions and social over direct wealth redistribution. Empirically, PMC occupations grew from about 10% of the U.S. in to over 30% by 1970, driven by industrialization and expansion, but data show their remuneration and autonomy vary widely, blurring lines with both skilled labor and executive elites. Critiques of the PMC concept argue it lacks empirical grounding as a coherent class, functioning instead as a permeable layer of well-compensated employees whose loyalties empirically align with owners through shared stakes in and values, rather than forming an antagonistic . Marxist analysts contend the Ehrenreichs' framework overemphasizes at the expense of material relations, with PMC members exhibiting behaviors akin to a —benefiting from and union suppression—evident in their disproportionate support for policies like trade liberalization that displace manual workers while preserving privileges. Recent applications highlight PMC dominance in institutions, where credentialed oversight stifles working-class agency, as seen in opposition to populist movements despite rhetorical , underscoring causal tensions between managerial expertise and proletarian interests rooted in ownership and control of production.

Economic and Social Functions

Drivers of Consumption and Innovation

The middle class, with its disposable income exceeding basic needs, forms a reliable base for consumer demand that incentivizes mass production and economies of scale. Empirical analyses indicate that a larger middle-class share of income correlates with higher aggregate consumption and economic growth, primarily through channels like human capital accumulation rather than direct spending alone. In historical context, this dynamic emerged prominently during the early 20th century in the United States, where rising wages for industrial workers enabled widespread purchases of automobiles; Henry Ford's 1914 implementation of a $5 daily wage for assembly-line employees—double the prevailing rate—allowed those same workers to buy Model T cars, spurring annual production from 250,000 units in 1914 to over 2 million by 1923 and establishing the assembly line as a model for scalable manufacturing. Post-World War II expansion of the middle class further amplified this effect, as households in developed economies invested in durable goods like refrigerators, televisions, and suburban , which comprised up to 60% of personal consumption expenditures in the U.S. by the and sustained GDP growth rates averaging 4% annually through the . This stable demand base encouraged firms to innovate in product and ; for example, the proliferation of clothing and processed foods in the relied on middle-class adoption, with U.S. expenditures rising from $1.3 billion in 1919 to $3.4 billion by 1929 to cultivate mass markets. Cross-country data from the reinforces that middle-income households sustain broader consumption patterns, including in , , and , which in turn support long-term productivity gains. Beyond consumption, the middle class drives through and technology adoption, as its members possess the and to undertake calculated risks. Data from U.S. household surveys show that middle-class families initiated 60% of new business-owner s between 1979 and 2013, contributing to small businesses—which often stem from such ventures—accounting for 43.5% of GDP and nearly half of private-sector as of 2024. This entrepreneurial activity fosters by channeling savings into startups; for instance, middle-class investments in , such as enrollment rates reaching 70% among U.S. middle-quintile youth by the 2010s, generate skilled labor that advances technological progress. Surveys further reveal a middle-class propensity for embracing new technologies, with positive perceptions of innovations in daily life enhancing rates and market viability for inventors. In aggregate, these mechanisms create loops where middle-class demand validates R&D investments, as evidenced by correlations between middle-class size and filings in nations from 1990 to 2015.

Stabilizers of Society and Governance

The middle class has long been regarded as a bulwark against social upheaval by serving as a moderating force between the extremes of wealth and poverty, thereby fostering political equilibrium. In ancient political theory, posited in his that a substantial middle class promotes constitutional , as its members lack the incentives for oligarchic excess or democratic factionalism, preferring balanced that upholds property rights and . This view aligns with historical patterns where emergent middle classes in supported the transition to limited monarchies and republics, demanding accountability from elites while resisting radical redistribution. Empirically, a robust middle class correlates with enhanced quality, including lower and stronger , as its members invest in public goods like and to secure their economic positions. Cross-country analyses indicate that nations with middle-class shares exceeding 50% of the exhibit higher institutional integrity scores, with the middle class acting as a fiscal base that funds effective state functions without reliance on extractive taxation. For instance, in developing economies from 1960 to 2000, expansions in the income-secure middle class—defined as households earning 2-10 times the poverty line—preceded improvements in democratic accountability and reduced . In contemporary democracies, the middle class stabilizes society by prioritizing incremental policy reforms over revolutionary change, valuing property protections and market predictability that deter authoritarian drifts. OECD data from 2019 across 30 member countries reveal that middle-income households, comprising 60-70% of the population in stable nations like Germany and Canada as of 2015, exhibit higher trust in institutions and lower protest participation compared to polarized low- or high-income groups. Conversely, middle-class contraction, as observed in the U.S. where its share fell from 61% in 1971 to 51% by 2023, correlates with rising political polarization and governance strain, evidenced by increased veto points and policy gridlock. This stabilizing role extends to economic resilience, where middle-class buffers against recessions, sustaining and reducing inequality-driven ; studies of 50 U.S. states from 1969-2004 found that larger middle-class sizes predicted 0.5-1% higher annual GDP growth through moderated fiscal policies. Middle-class taxpayers, often professionals and small proprietors, also enforce by litigating against corruption and supporting merit-based bureaucracies, as seen in post-1980s reforms in where middle-class growth from 20% to 40% of households coincided with transparency index gains. However, in contexts of rapid , such as Latin America in the 2010s, middle-class erosion has fueled populist volatility, underscoring the causal link between class size and institutional durability.

Dynamics in Developed Western Economies

, the share of adults residing in middle-income households declined from 61% in 1971 to 51% in 2023, reflecting a contraction driven by slower growth relative to upper- and lower- tiers. The middle class's portion of aggregate national further eroded, dropping from 62% in 1970 to 42% by 2021, as upper-income households captured a disproportionate rise from gains and asset appreciation. This manifests in reduced intergenerational , with recent analyses showing children born in the 1980s facing lower odds of out-earning their parents compared to those born in the , particularly in regions with concentrated and limited access to high-quality . Across , middle-class dynamics exhibit greater stability in household proportions but persistent stagnation in real income growth, with median disposable incomes in countries advancing by less than 0.5% annually in many nations from the 1980s through the 2010s, outpaced by top earners amid rising housing and education costs. In nations like and , the middle-income bracket—defined as 75-200% of —held steady at around 60-65% of the from 2005 to 2021, yet faced from displacing routine manufacturing and clerical jobs held by less-educated workers. exacerbated this by shifting low-to-medium skill to lower-wage regions, correlating with a 1-2 reduction in middle-class income shares per decade in exposed sectors, as measured by indices. Technological advancements, particularly digital and skill-biased , have amplified these pressures by rewarding cognitive and expertise while hollowing out demand for mid-skill occupations, leading to wage stagnation for non-college graduates in both the and since the . Policy responses, including expansive trade agreements and uneven retraining investments, have varied: in the , minimal adjustment assistance post-NAFTA contributed to manufacturing job losses exceeding 5 million from 2000-2010, disproportionately affecting middle-class breadwinners in states. European welfare expansions, such as expanded in , mitigated absolute declines but failed to restore relative mobility, with cross-national studies indicating that fiscal transfers preserve middle-class size without reversing polarization trends. Empirical critiques of decline narratives note middle-class expansion in sectors, yet these gains often involve precarious gig work with lower earnings stability than prior industrial roles.

Expansion in Emerging and Developing Markets

The middle class in emerging and developing markets has undergone rapid expansion since the early 2000s, accounting for the bulk of global middle-class growth amid economic liberalization, export-oriented industrialization, and urbanization. According to analysis by the Brookings Institution, the global middle class—defined as households with daily per capita expenditures between $10 and $100 in 2011 purchasing power parity (PPP) terms—reached approximately 3.2 billion people by 2016, with emerging economies driving nearly all net increases through annual growth rates exceeding 6% in many cases. This surge reflects causal factors such as integration into global trade networks, which boosted manufacturing and service sectors, enabling hundreds of millions to transition from subsistence agriculture or informal labor to wage-based employment with stable incomes. By 2025, the broader consumer class (defined as individuals spending more than $13 per day in 2021 PPP terms) surpassed 4 billion worldwide, with projections indicating it will reach 5.7 billion by 2030 out of a global population of 8.7 billion, predominantly fueled by entrants from these markets. Asia has dominated this trend, particularly and , where policy shifts toward market-oriented reforms catalyzed massive income gains. In , the middle-class share of the population grew from 3% (about 39 million people) in 2000 to over 50% (roughly 707 million) by 2018, propelled by state-led industrialization, foreign investment, and rural-to-urban migration that created millions of and jobs. middle-income earners alone exceeded 400 million by 2024, supporting domestic consumption in sectors like automobiles and . In , the middle class expanded at an average annual rate of 6.3% from 1995 to 2021, driven by services, , and post-1991, with projections estimating an addition of 75 million middle-class households and 25 million affluent ones by 2030, elevating their share to 56% of households. These gains stem from empirical patterns of accumulation and capital investment, though uneven distribution persists due to regional disparities and skill mismatches. In , middle-class peaked in the 2000s but has moderated since, reaching about 30% of the (a 50% increase from prior decades) by 2012 through booms and conditional cash transfers that reduced vulnerability to . However, post-2014 stagnation in countries like and —linked to falling prices, fiscal expansions, and regulatory hurdles—has limited further expansion, with the middle class remaining the third- and fourth-largest regionally but facing erosion from and spikes. Africa's trajectory shows promise but lags, with the middle class tripling to 313 million (34% of the ) over the three decades to around 2011, primarily in centers of , , and , via resource extraction and nascent manufacturing. Projections indicate surpassing 500 million by 2030, contingent on improvements and diversification beyond commodities, though political instability and dependency ratios constrain pace compared to . Overall, these expansions have elevated , fostering in , yet sustainability hinges on sustaining amid demographic pressures and challenges.

Post-2020 Developments and Projections

The disrupted global middle class expansion, resulting in an estimated 54 million fewer individuals qualifying as middle class in 2020 compared to pre-pandemic projections, with rising sharply due to job losses and economic contractions. An additional 150 million people worldwide fell out of the middle class in 2020, marking the first reversal in nearly three decades of growth, particularly affecting emerging markets through disruptions and reduced . In the United States, the middle class share of adults declined to 50% by 2021, continuing a long-term trend from 61% in 1971, amid uneven recovery where middle-class reached $106,100 in 2022 but faced erosion from peaking at 9.1% in June 2022. By 2025, the threshold for middle-class status nationally ranged from approximately $49,500 to $148,500 for a of three, reflecting adjusted cost-of-living pressures that outpaced wage gains for many in non-college-educated occupations. Emerging markets experienced acute setbacks, with middle-income households in regions like and vulnerable to and shifts post-2020, though recovery in export-driven economies like and mitigated some losses by 2023. Projections indicate a rebound in global middle class size to 5.5 billion by 2030, driven primarily by where the share is expected to reach 66%, though this growth remains precarious amid geopolitical tensions and risks that could exacerbate income volatility. In developed economies, sustained stagnation is anticipated without productivity-enhancing reforms, as real incomes for middle-class households, while higher than in 1980, continue to lag behind upper-income growth amid fiscal pressures from aging populations.

Challenges, Controversies, and Debates

Evidence on Western Stagnation or Decline

In the United States, the proportion of adults residing in middle-income households declined from 61% in 1971 to 50% in 2021, reflecting a where upper-income households grew from 29% to 34% while lower-income ones increased from 11% to 17%. Over the period from 1970 to 2018, middle-class households' share of fell from 62% to 43%, as upper-income shares rose from 29% to 48%. Real median wages for most U.S. workers stagnated between 1979 and 2018, with typical weekly earnings rising only 9.2% after , compared to a 15.7% increase for the top . Across countries, middle-income households' earnings grew three times slower than the national average between 1985 and 2014, with stagnation or minimal advances in nations like the , , and since the . In , the middle class shrank in 18 of 26 countries analyzed from 1980 to 2016, accompanied by heightened income polarization, as lower- and upper-income shares expanded. This trend persisted into the , with middle-income growth lagging amid post-financial crisis productivity slowdowns, such as the United Kingdom's annual labor productivity rise of just 0.4% from 2008 to 2020, half the OECD rich-country average. Housing affordability exacerbated the squeeze, with U.S. homeownership rates dropping to 65.2% by early 2025 from 67.1% in 2000, while essential middle-class costs like outpaced and . In , rising , health, and prices relative to stagnant middle s undermined traditional attainments, as documented in analyses of German and broader continental trends. These pressures contributed to perceptions of decline, though some studies note absolute gains for dual-adult middle households since 1980, underscoring a distinction between relative share erosion and baseline living standards.

Causal Factors: Policy, Globalization, and Technology

Policies such as the erosion of bargaining power and shifts in tax structures have contributed to middle-class wage stagnation . membership declined from 20.1% of workers in 1983 to 10.1% in , correlating with slower real wage growth for non-supervisory workers, whose hourly rose only 15% in real terms from to despite gains of over 60%. reforms in the , including reductions in top marginal rates from 70% in 1980 to 28% by 1988, disproportionately benefited high earners, exacerbating income polarization as the for after-tax income increased from 0.35 in to 0.41 by 2016. expansions, while providing safety nets, have sometimes imposed effective marginal tax rates exceeding 50% on middle-income families transitioning from benefits, discouraging labor force participation and compressing middle-class ; for instance, combined federal and state phase-outs in programs like the and can reduce net income gains for households earning $30,000 to $50,000 annually. Globalization, particularly through trade liberalization and , has displaced middle-skill jobs, reducing the middle-class income share in advanced economies. Empirical analysis using the KOF Index shows that a one-standard-deviation increase in correlates with a 1.5 decline in the middle 60% income share across countries from 1980 to 2014, driven by import competition from low-wage nations like . In the , the "" from 1999 to 2011 led to the loss of 2 to 2.4 million jobs, with exposed workers experiencing persistent 1% annual wage reductions and limited reemployment in comparable roles, as local labor markets in import-competing regions saw middle-class hollowing. While boosted overall GDP growth by 1-2% annually in the post-NAFTA (1994), the benefits accrued unevenly, with non-college-educated workers in trade-exposed sectors facing cumulative wage suppression of up to 20% relative to non-exposed peers by 2007. Technological advancements, including and , have accelerated job by automating routine middle-skill tasks, further eroding the middle class. From 1980 to 2016, employment growth concentrated in high-skill and low-skill roles, while middle-skill like clerical and work declined by 10-15% of total , for over half of the trend. Routine-biased explains approximately 60-80% of the decline in middle-wage jobs since the 1980s, as computerization substituted for tasks in paying 75-125% of s, leading to a 5-10% wage premium shift toward cognitive non-routine skills. Recent generative developments, deployed since 2022, threaten an additional 20-30% of middle-class tasks in fields like , legal support, and , with projections estimating 300,000-500,000 job displacements by 2025 if adoption mirrors past rates. Despite creating high-skill opportunities, these shifts have not fully offset losses for displaced workers, many of whom downskill into lower-paying roles, sustaining income stagnation for the middle quintile.

Debunking Myths of Disappearance and Inevitability

Narratives asserting the disappearance of the middle class, particularly in Western economies, often rely on the declining share of the population classified as middle-income, which fell from 61% in 1971 to 51% in 2023 in the United States according to Pew Research Center analysis of government data. However, this metric overlooks absolute growth: the number of middle-class adults increased from approximately 51 million in 1971 to 108 million in 2023, reflecting population expansion and upward mobility where more households transitioned to upper-income tiers. Empirical studies, such as Bruce Sacerdote's analysis, further indicate that middle-class incomes and consumption have grown, albeit slower than at the top, with definitional adjustments revealing less shrinkage than commonly portrayed. The perception of stagnation or decline is exacerbated by failure to account for household composition changes, including a rise in single-person s and smaller family sizes, which lower average household incomes without reflecting individual earning power erosion. Real median household incomes for the middle class, adjusted for these factors, show gains; for instance, research finds middle-class real incomes higher in recent decades than in 1980, especially for dual-adult households. Globally, the middle class has expanded dramatically, with billions entering from emerging markets like and , countering Western-centric claims of broad disappearance—despite a temporary pandemic-induced contraction of 150 million worldwide in 2020. Claims of inevitability stem from attributing decline to immutable forces like and , yet evidence demonstrates reversibility through and behavioral adjustments. analyses highlight how increased rates could reduce and bolster middle-class stability by over 25%, underscoring social factors over inexorable economic tides. Historical precedents, including post-World War II expansions via and policies, affirm that growth-oriented measures—such as enhancement and regulatory restraint—can sustain or restore middle-class vitality, rendering decline neither predestined nor irreversible. data on varying middle-class trajectories across member states further supports that outcomes hinge on national policies rather than universal determinism.

References

  1. [1]
    Under Pressure: The Squeezed Middle Class - OECD
    At the macro level, the presence of a strong and prosperous middle class supports healthy economies and societies. Through their consumption, investment in ...
  2. [2]
    The State of the American Middle Class - Pew Research Center
    May 31, 2024 · Middle-income households are defined as those with an income that is two-thirds to double that of the U.S. median household income, after ...Missing: empirical | Show results with:empirical
  3. [3]
    Defining the middle class: Cash, credentials, or culture? | Brookings
    May 7, 2018 · A broader and commonly used definition of the middle class includes the middle three quintiles, encompassing 60 percent of all households. In ...
  4. [4]
    [PDF] The State of the American Middle Class - Pew Research Center
    May 31, 2024 · This report examines key changes in the economic status of the American middle class from 1970 to 2023 and its demographic attributes in 2022.
  5. [5]
    [PDF] Under Pressure: The Squeezed Middle Class | OECD
    A strong and prosperous middle class is important for the economy and society as a whole, and notably to sustain consumption and investment in education ...
  6. [6]
    [PDF] Selected policy challenges for the American middle class - OECD
    Mar 6, 2023 · A healthy middle class enhances political stability, which in turn is conducive to investment and economic growth. (Alesina and Perotti, 1996).
  7. [7]
    How the consumer class continues to rise | World Economic Forum
    Jul 18, 2025 · In 2025, despite the slowest expansion since the pandemic, the global middle class will surpass 4 billion for the first time, becoming the ...
  8. [8]
    Steady 54% of Americans Identify as Middle Class - Gallup News
    May 23, 2024 · Fifty-four percent of Americans identify as part of the middle class, including 39% who say they are “middle class” and 15% “upper-middle class.”<|control11|><|separator|>
  9. [9]
    Job polarisation and the middle class - OECD
    Job polarisation and the middle class. New evidence on the changing relationship between skill levels and household income levels from 18 OECD countries.<|separator|>
  10. [10]
    [PDF] Defining and Measuring the Middle Class | AIER
    A four-member, middle-class household is defined as those having disposable income that falls between 67 percent and 200 percent of median household disposable ...
  11. [11]
    Are you in the U.S. middle class? Try our income calculator
    Sep 16, 2024 · In 2022, the national middle-income range was about $56,600 to $169,800 annually for a household of three. Lower-income households had incomes ...Middle Class · Is College Worth It? · Income & WagesMissing: characteristics | Show results with:characteristics
  12. [12]
    The hidden cues of social class: What do people rely on when ...
    Dec 29, 2023 · We aimed to understand the cues individuals use to assess social class, and their relation to social theories.
  13. [13]
    Middle Classes - Sociology - Oxford Bibliographies
    Nov 21, 2012 · Empirically, the literature on the middle class addresses the structural forces shaping the emergence of the middle class in different national ...
  14. [14]
    [PDF] Is There Such a Thing As Middle Class Values?
    Middle class values have long been perceived as drivers of social cohesion and growth. In this paper we investigate the relation between class (measured by ...
  15. [15]
    The psychology of social class: How socioeconomic status impacts ...
    Relative to middle‐class counterparts, lower/working‐class individuals are less likely to define themselves in terms of their socioeconomic status and are more ...
  16. [16]
    Understanding Social Class as Culture - Behavioral Scientist
    Aug 12, 2016 · One of the key psychological sources of growing inequality seems to lie in the differences between the culture and norms of the middle class, ...
  17. [17]
    Social and cultural mobility: rising to the middle class and cultural ...
    Oct 25, 2022 · This article explores the influence of upward educational and occupational mobility in reading literature, participation in highbrow activities, television ...Theoretical Background · Social Mobility And Cultural... · Results
  18. [18]
    [PDF] Middle Class Ideologies: Norms and Historical Changes - OSF
    Much of what we know regarding the norms and values of the middle class has traditionally come from comparing the beliefs of middle class members from those of ...
  19. [19]
    5.1 The Impacts of Social Class – Intercultural Communication
    Social class impacts health, family life, education, religious affiliation, political participation, and criminal justice experiences.
  20. [20]
    The Social Importance of the Middle Class | Esade - Do Better
    Oct 4, 2022 · The roots of the middle class date back to the 19th century and the liberal revolutions that first affected the privileged positions of nobles and landowners.
  21. [21]
    Was there a middle class in Ancient Rome? - IMPERIUM ROMANUM
    Oct 3, 2021 · The Romans themselves would probably consider the middle-class equites, an intermediate state between the senatorial aristocracy (nobilitas) and ...
  22. [22]
    Ancient Greek Society: Classes, Community, Minorities
    A third group were the middle, business class. Engaged in manufacturing, trade, and commerce, these were the nouveau riche. However, the aristoi jealously ...<|separator|>
  23. [23]
    Medieval Guilds – EH.net - Economic History Association
    Guilds were groups of individuals with common goals. The term guild probably derives from the Anglo-Saxon root geld which meant 'to pay, contribute.'
  24. [24]
    [PDF] Business in the Middle Ages: What Was the Role of Guilds?
    Guilds in medieval Europe could be classified into two types: craft guilds and merchant guilds. Craft guilds were made up of craftsmen and artisans in the same ...
  25. [25]
    the-bourgeoisie-in-southwestern-germany-1500-1789-a-rising-class ...
    Having risen to prominence in the sixteenth century they re- mained the leaders of the bourgeoisie, whether urban or territorial, until the nineteenth century.
  26. [26]
    History of Europe - Bourgeoisie, Industrial Revolution, Enlightenment
    Sep 10, 2025 · The European bourgeoisie possessed property, desired to increase it, and were ready to work. They had values of sobriety, discretion, and ...
  27. [27]
    British History in depth: The Rise of the Victorian Middle Class - BBC
    Feb 17, 2011 · In the past, historians have argued that an industrious middle-class made great fortunes in the early days of the industrial revolution and ...
  28. [28]
    How the Industrial Revolution Shaped Modern Capitalism
    Jan 10, 2023 · Key trends during the Industrial Revolution include demographic shifts such as urbanization and the birth of the middle class.
  29. [29]
    Overview | Rise of Industrial America, 1876-1900 - Library of Congress
    Industrial growth transformed American society. It produced a new class of wealthy industrialists and a prosperous middle class. It also produced a vastly ...
  30. [30]
    HIST 202 - Open Yale Courses
    In the nineteenth century one of the things that happens with the French Revolution and with Napoleon is that the middle-class person and middle-class values ...Missing: growth 19th<|separator|>
  31. [31]
    A Brief History of the American Middle Class - ResearchGate
    Sep 3, 2022 · The credit for the birth of the American middle class in 1914 goes to Henry Ford. Reckless speculation in the New York Stock Market led to the Great Depression ...
  32. [32]
    A Guide to Statistics on Historical Trends in Income Inequality
    Dec 11, 2024 · Beginning in the 1970s, economic growth slowed and the income gap widened. Income growth for households in the middle and lower parts of the ...
  33. [33]
    Post-world war ii economic boom - (US History – 1865 to Present)
    The post-war boom led to a 37% increase in real GDP between 1945 and 1960, signifying robust economic growth. Home ownership rates soared during this time, with ...<|separator|>
  34. [34]
    [PDF] HOW THE G.I. BILL BUILT THE MIDDLE CLASS AND ENHANCED ...
    Following World War II, the “Servicemen's Readjustment Act of 1944” – better known as the. G.I. Bill – helped returning veterans earn college degrees, ...
  35. [35]
    Historical Census of Housing Tables: Homeownership
    Oct 8, 2021 · By 1940, its rate had fallen to about 50 percent. Afterward, it increased rapidly to well over 60 percent in one decade. Some of its neighbors-- ...
  36. [36]
    Economic Recovery: Lessons from the Post-World War II Period
    Sep 10, 2012 · Real consumption rose by 22 percent between 1944 and 1947, and spending on durable goods more than doubled in real terms. Gross private ...
  37. [37]
    The Rise of the Middle Class – HIS115 – US History Since 1870
    Naturally, this led to further the demand for automobiles. The percentage of American families owning cars increased from 54% in 1948 to 74% in 1959. Suburban ...
  38. [38]
    How the American middle class has changed in the past five decades
    Apr 20, 2022 · The median income of middle-class households in 2020 was 50% greater than in 1970 ($90,131 vs. $59,934), as measured in 2020 dollars. These ...Missing: characteristics | Show results with:characteristics
  39. [39]
  40. [40]
    The Soul of Adam Smith's Classical Liberalism
    May 17, 2023 · Smith's vision is the foundation of Classical Liberalism. Different assumptions about human nature and how individuals relate to society as a whole underlie ...
  41. [41]
    What is liberal about Adam Smith's “liberal plan”? - Matson - 2022
    Aug 17, 2022 · The liberal plan leads to economic growth, which leads to a rise in real wages and population through an extending division of labor.INTRODUCTORY REMARKS · WHAT IS THE LIBERAL PLAN? · LIBERAL WAGES
  42. [42]
    Understanding Burke, Who Understood Men
    ... Burke himself had advanced far beyond his middle-class Irish background into the upper reaches of English political life. In his “Letter to a Noble Lord,” Burke ...
  43. [43]
    Essay 4: Social State Of The Anglo-Americans – Volume 1 Part 1 ...
    Sep 12, 2024 · De Tocqueville's main theme in this chapter is the mutually reinforcing relationship of American social conditions, the character trait of ...
  44. [44]
    [PDF] Capitalism and Freedom
    Hayek titled his brilliant 1944 polemic. What is true for the United States and Great Britain is equally true for the other Western advanced countries. In.
  45. [45]
    The Case for Capitalism | The Heritage Foundation
    May 21, 2020 · American capitalism has also produced the largest and most affluent middle class in the world, with a per capita GDP of more than $65,000. By ...
  46. [46]
    Marx on Social Class - University of Regina
    Jan 31, 2003 · Marx's view was that the successful members of the middle class would become members of the bourgeoisie, while the unsuccessful would be forced ...
  47. [47]
    Communist Manifesto (Chapter 3) - Marxists Internet Archive
    MIA: Marxists: Marx & Engels: Library: 1848: Manifesto of the Communist ... In Germany, the petty-bourgeois class, a relic of the sixteenth century ...<|separator|>
  48. [48]
    Petite bourgeoisie - Oxford Reference
    This traditional 'petty' bourgeoisie (the widespread adoption of the pejorative epithet speaks volumes about the limitations of Marxism), discussed by Marx in ...
  49. [49]
    Lenin: Petty-Bourgeois and Proletarian Socialism
    ... view and the present-day Marxist view on the peasant question in Russia. The Marxists say that the Socialist-Revolutionaries represent the standpoint of the ...
  50. [50]
    Is the Middle Class Worse Off Than It Used to Be?
    Our results show that real incomes for today's middle class are somewhat higher than in 1980, particularly for households with two adults.
  51. [51]
    Visualizing the World's Growing Middle Class (2020–2030)
    Feb 3, 2022 · More than half of the world's population is projected to be in the middle class by 2030. We highlight their impact on the global economy.
  52. [52]
    Marx on Social Class - University of Regina
    Oct 3, 2002 · The issue of the middle class or classes appears to be a major issue within Marxian theory, one often addressed by later Marxists. Many Marxists ...
  53. [53]
    The professional-managerial class - Barbara and John Ehrenreich
    Feb 9, 2025 · A Definition. We define the Professional-Managerial Class as consisting of salaried mental workers who do not own the means of production and ...
  54. [54]
    On the Origins of the Professional-Managerial Class: An Interview ...
    Oct 22, 2019 · “Professional-managerial class” (PMC), a term coined by Barbara and John Ehrenreich in a 1977 essay for Radical America, has recently ...
  55. [55]
    The Making of the Professional Managerial Class - The Vital Center
    Jul 15, 2024 · ... Ehrenreich diagnosed the professional-managerial class in a pair of controversial essays in 1977 for Radical America, a New Left journal.Missing: origin | Show results with:origin
  56. [56]
    The Characterless Opportunism of the Managerial Class
    Nov 20, 2019 · But Ehrenreich set out not simply to define and locate the professional managerial class, but specifically to interrogate its own self-awareness ...Missing: origin | Show results with:origin
  57. [57]
    Introduction to the Professional Managerial Class - Arkansas Worker
    Jan 26, 2023 · The professional managerial class (PMC) has been fighting a class war, not against capitalists or capitalism, but against the working classes.
  58. [58]
    The PMC Is Not a New Class - Jacobin
    Apr 27, 2024 · The “professional managerial class” is a staple of recent cultural commentary, but there's no empirical evidence for its existence.
  59. [59]
    The New Managerial Class Is Not a Class at All
    Jun 18, 2020 · But critics who uphold the New Class status of these professionals and managers instead focus on the type of work done, rather than the form of ...
  60. [60]
    [PDF] The Role of the Middle Class in Economic Development - EconStor
    Our key finding is that the middle class does have a role to play in driving consumption growth and that their role works primarily through human capital ...
  61. [61]
    The Role of the Middle Class in Economic Development
    Aug 7, 2025 · An empirical evidence proves the middle-class contribution to economic growth through increasing input factors, namely human capital (Chun et al ...
  62. [62]
    Automobile History
    Apr 26, 2010 · Henry Ford innovated mass-production techniques that became standard, and Ford, General Motors and Chrysler emerged as the “Big Three” auto ...
  63. [63]
    How Did Mass Production and Mass Consumption Take Off After ...
    Feb 14, 2023 · This resource explores how goods became cheaper and how buying power increased, as well as the benefits and drawbacks of this new age of consumerism.
  64. [64]
    1920s consumption (article) - Khan Academy
    The mass consumption of cars, household appliances, ready-to-wear clothing, and processed foods depended heavily on the work of advertisers. Magazines like ...
  65. [65]
    How Does Middle-Class Financial Health Affect Entrepreneurship in ...
    May 21, 2015 · Analysis in this report shows that middle-class families account for 60 percent of new business ventures. According to the U.S. Small Business ...
  66. [66]
    Small Business Data Center - U.S. Chamber of Commerce
    May 20, 2024 · Small businesses employ nearly half of the American workforce and represent 43.5% of America's GDP. They are a critical part of our economic ecosystem.
  67. [67]
    Adaptation of the middle class to innovation: perception of new ...
    Nov 9, 2022 · The study shows that the middle class has a positive attitude towards introduction of new technologies into various areas of life.
  68. [68]
    Growth and the Middle Class - Democracy Journal
    The middle class is the source of economic growth. A strong middle class provides a stable consumer base that drives productive investment.
  69. [69]
  70. [70]
    [PDF] The middle class and its importance for democracy
    The middle class grew steadily in tandem with the rise of modern democracies ... historical support of the moderate liberal parties from the middle class.
  71. [71]
    [PDF] Does the Rise of the Middle Class Lock in Good Government in the ...
    The country data I set out below on the two factors, namely the current size of the incomesecure middle class and its likely future growth, suggest that ...
  72. [72]
    Publication: Do Middle Classes Bring Institutional Reforms?
    The paper examines the link between poverty, the middle class and institutional outcomes using a new cross-country panel dataset on the distribution of ...Missing: size | Show results with:size
  73. [73]
    [PDF] Income Inequality and Political Instability
    Aug 22, 2022 · large disparities in income distribution and the absence of wealthy middle class negatively impact political stability. A similar study by ...
  74. [74]
    Middle-Class Heroes: The Best Guarantee of Good Governance
    Feb 16, 2016 · Middle-class citizens want the stability and predictability that come from a political system that promotes fair competition, in which the very ...Missing: stabilizer | Show results with:stabilizer
  75. [75]
  76. [76]
    Tracking the decline of social mobility in the U.S. - Yale News
    Feb 20, 2025 · Harvard economist Raj Chetty used a series of maps and charts to reveal the dramatic decline in upward mobility in the US and how data findings can be used to ...
  77. [77]
    Developments in income inequality and the middle class in the EU
    Jul 10, 2024 · This report provides a comprehensive examination of trends in income inequality within and between the EU Member States from 2006 to 2021.Missing: OECD 2000-2023
  78. [78]
    The 'Forgotten' middle class: An analysis of the effects of globalisation
    Aug 21, 2021 · Our findings suggest that globalisation, proxied by the KOF Economic Globalization Index, reduces the income share of the middle class.
  79. [79]
    Trade and inequality in Europe and the US | Oxford Open Economics
    Whereas educated workers in skilled occupations benefited from rising salaries, wages have stagnated for many less educated workers in unskilled occupations.
  80. [80]
    Globalization, technology, and inequality: It's the policies, stupid
    Feb 16, 2018 · Zia Qureshi explains how the rise in socio-economic inequality lies at the heart of rising global social discontent and how good policies ...Missing: Western | Show results with:Western
  81. [81]
    The Myth of the Middle Class Squeeze: Employment and Income by ...
    Based on the Luxembourg Income Study 1980–2020, we show for France, Germany, Poland, Spain, the UK, and the US that middle-class employment expanded, while the ...
  82. [82]
    The unprecedented expansion of the global middle class | Brookings
    Feb 28, 2017 · The global middle class, numbering about 3.2 billion in 2016, may be considerably larger, by about 500 million people, than previous calculations suggested.
  83. [83]
    How Well-off is China's Middle Class? - ChinaPower Project
    In 2000, China's middle class amounted to just three percent of its population. By 2018, this number had climbed to over half of the population, constituting ...
  84. [84]
    China's Growing Middle Class: The Remarkable Force Transforming ...
    Aug 12, 2025 · According to the Ministry of Foreign Affairs of People's Republic of China, the urban middle-income population surpassed 400 million in 2024 ( ...
  85. [85]
    Is the World Ready to Meet the Indian Middle Class? - Skift
    Jan 9, 2024 · This group in India grew 6.3% per year between 1995 and 2021, according to a report by the People Research on India's Consumer Economy (PRICE).
  86. [86]
    Latin America: Middle Class hits Historic High - World Bank
    The middle class in Latin America grew 50%, and now represents 30% of the population. According to the experts, this growth is due to growth and job creation.
  87. [87]
    The future of the middle class in emerging markets - Oxford Economics
    Oct 16, 2024 · In Latin America, while the middle class in Brazil and Mexico may not see rapid growth, they will remain the third and fourth largest among ...
  88. [88]
    Africa's Middle Class Triples to more than 310m over Past 30 Years ...
    The number of middle class Africans has tripled over the last 30 years to 313 million people, or more than 34% of the continent's population.Missing: 2020-2025 | Show results with:2020-2025
  89. [89]
    Africa's Middle Class Fuels a New Era of Consumer Growth
    Aug 19, 2025 · The African middle class—expected to surpass 500 million people by 2030—is increasingly demanding better housing, education, healthcare, and ...Missing: 2020-2025 | Show results with:2020-2025
  90. [90]
    The Pandemic Stalls Growth in the Global Middle Class, Pushes ...
    Mar 18, 2021 · The global middle class consisted of 54 million fewer people in 2020 than the number projected prior to the onset of the pandemic.Missing: post- | Show results with:post-
  91. [91]
    Millions Are Tumbling Out of the Global Middle Class in Historic ...
    Apr 7, 2021 · An estimated 150 million slipped down the economic ladder in 2020, the first pullback in almost three decades.
  92. [92]
    What does it take to be middle class in 2025? New study explains
    Feb 26, 2025 · With a median income of $74,225, it takes between roughly $49,500 and $148,500 to be middle class nationally, SmartAsset found. That's up from ...
  93. [93]
    COVID and the outlook for emerging markets - PMC - PubMed Central
    Changes in global supply chains and a faster pace of automation will make the traditional pathway to higher incomes more difficult for many middle-income ...
  94. [94]
    Developments and Forecasts of Growing Consumerism
    The global middle class is expected to grow and reach 5.5 billion by 2030. Some 87% of the additional middle class population will be Asians.
  95. [95]
    Shrinking Middle (2025) - Future Agenda
    Most of the middle class growth is expected to come from more of the 56% low-income people crossing the $10 threshold.Missing: developing | Show results with:developing
  96. [96]
    Trends in U.S. income and wealth inequality - Pew Research Center
    Jan 9, 2020 · From 1991 to 2000, the mean income of the top 5% of families grew at an annual average rate of 4.1%, compared with 2.7% for families in the ...
  97. [97]
    Full article: The Decline of the Middle Class: New Evidence for Europe
    Dec 27, 2021 · We find that the middle class has decreased in eighteen out of twenty-six countries, which is accompanied by an increase of income polarization.Missing: stagnation | Show results with:stagnation
  98. [98]
    [PDF] Stagnation nation: The Economy 2030 Inquiry - Resolution Foundation
    Labour productivity grew by just 0.4 per cent a year in the. UK in the 12 years following the financial crisis, half the rate of the 25 richest OECD countries ( ...
  99. [99]
    The death of the family home is killing the American middle class
    May 26, 2025 · “The cost of essential parts of the middle-class lifestyle have increased faster than inflation,” it notes. Housing prices have been rising “ ...
  100. [100]
    [PDF] Is the German Middle Class Crumbling? Risks and Opportunities
    Sluggish income growth coincided with an increase in the costs of a middle-class lifestyle. Across the OECD, prices for housing, health, and education have ...
  101. [101]
    The rise of the middle class safety net - Brookings Institution
    Sep 4, 2018 · An increasing share of spending on the safety net goes to families above the poverty line. Low-income and even middle-income families are also more reliant on ...
  102. [102]
    How do taxes affect income inequality? - Tax Policy Center
    Because high-income households pay a larger share of their income in total federal taxes than low-income households, federal taxes reduce income inequality.Missing: size | Show results with:size
  103. [103]
    Globalization and American Wages: Today and Tomorrow
    Oct 10, 2007 · This Briefing Paper reexamines what conventional economics actually predicts about the effects of integrating the rich United States and poor global economies.
  104. [104]
    [PDF] Globalization and Wage Inequality1 - Scholars at Harvard
    Dec 2, 2016 · Building on this research, I conclude that trade played an appreciable role in increasing wage inequality, but that its cumulative effect has ...
  105. [105]
    How automation and other forms of IT affect the middle class
    An important literature demonstrates that this change has meant the loss of job opportunities in certain types of occupations—those that are routine in nature, ...
  106. [106]
    [PDF] Why Are There Still So Many Jobs? The History and Future of ...
    ... middle-skill jobs are susceptible to automation, many middle-skill jobs will continue to demand a mixture of tasks from across the skill spectrum.
  107. [107]
    Applying AI to Rebuild Middle Class Jobs | NBER
    Feb 8, 2024 · AI, if used well, can assist with restoring the middle-skill, middle-class heart of the US labor market that has been hollowed out by automation and ...
  108. [108]
    Artificial intelligence is transforming middle-class jobs. Can it also ...
    Jan 18, 2025 · Generative AI is reshaping middle-class jobs but requires urgent action to address infrastructure gaps and strengthen education systems.
  109. [109]
    [PDF] Is the Decline of the Middle Class Greatly Exaggerated?
    Recently the OECD issued its report titled “Under Pressure: The Squeezed Middle Class,” which defines middle class as having a household income between 75 ...Missing: global | Show results with:global
  110. [110]
    The Exaggerated Death of the Middle Class - Brookings Institution
    The first market factor affecting middle-class income is a longtime trend of low literacy and math achievement in U.S. schools, which partially explains why ...
  111. [111]
    The Myth of the Disappearing Middle Class - Brookings Institution
    Brookings data show that if the same share of adults were married today as in 1970, poverty would be reduced by more than a quarter.