Who Is in the Middle?

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After eight years of economic policies custom-made for the hedge fund set, it is great to hear the economic interests of the middle class mentioned so often in the presidential campaign. As the candidates enthuse about all they intend to do for this important segment of American society, it would be helpful if they also specify what they mean by “middle.”

It is puzzling when Barack Obama suggests a tax cut for a middle class that earns all the way up to $200,000 a year. When John McCain drew the border between the middle class and the rich at $5 million a year, it brought to mind Marie Antoinette’s musings about dessert.

There is such a thing as a straightforward middle. The nation’s median household income last year was $50,233. Half of all households earned more and half earned less. Some economists would define the middle class as those who earn between 75 percent and 125 percent of that — say households making between $37,500 and $63,000.

Development economists sometimes define the middle class as those making more than the bottom fifth of the population but less than the top fifth. In this country, that would include households making between $20,291 and $100,000. Of course, there are places — New York comes to mind — where $150,000 a year does not buy many of the trappings of wealth.

http://www.nytimes.com/2008/11/02/opinion/02sun3.html?th&emc=th