9.2.1 Social Classes in the United States

For sociologists, categorizing social class is a fluid science. Sociologists generally identify three levels of class in the United States: upper, middle, and lower class. Within each class, there are many subcategories. Wealth is the most significant way of distinguishing classes, because wealth can be transferred to one’s children and perpetuate the class structure. One economist, J.D. Foster, defines the 20 percent of U.S. citizens’ highest earners as “upper income,” and the lower 20 percent as “lower income.” The remaining 60 percent of the population make up the middle class (Mason 2010). With that distinction, economists can describe the range in annual household incomes for the middle-class, but they cannot show how the range of all incomes vary and how they change over time. For this reason, the Pew Center defines classes based on the median household income. The lower class includes those whose income is two-thirds of the national median, the middle class includes those whose income falls between two-thirds and twice the median, and the upper class includes those whose income is above twice the national median (Kochhar 2015). Though median income levels vary from state to state, at the national level you would be considered in the middle-class if you earned between $48,500 to $145,500 in 2018 U.S. dollars (Bennett 2000).

One sociological perspective distinguishes the classes, in part, according to their relative power and control over their lives. Members of the upper class not only have power and control over their own lives, but their social status gives them power and control over others’ lives. The middle class doesn’t generally control other strata of society, but its members do exert control over their own lives. In contrast, the lower class has little control over their work or lives. Below, we will explore the major divisions of U.S. social class and their key subcategories.

Upper Class

The upper class is considered the top, and only the powerful elite get to see the view from there. In the United States, people with extreme wealth make up one percent of the population, and they own roughly one-third of the country’s wealth (Beeghley 2008).

Money provides not just access to material goods, but also access to a lot of power. As corporate leaders, members of the upper class make decisions that affect the job status of millions of people. As media owners, they influence the collective identity of the nation. They run the major network television stations, radio broadcasts, newspapers, magazines, publishing houses, and sports franchises. As board members of the most influential colleges and universities, they influence cultural attitudes and values. As philanthropists, they establish foundations to support social causes they believe in. As campaign contributors and legislation drivers, they fund political campaigns to sway policymakers, sometimes to protect their own economic interests and at other times to support or promote a cause. (The methods, effectiveness, and impact of these political efforts are discussed in the Politics and Government chapter.)

U.S. society has historically distinguished between “old money” (inherited wealth passed from one generation to the next) and “new money” (wealth you have earned and built yourself). While both types may have equal net worth, they have traditionally held different social standings. People of old money, firmly situated in the upper class for generations, have held high prestige. Their families have socialized them to know the customs, norms, and expectations that come with wealth. Often, the very wealthy don’t work for wages. Some study business or become lawyers in order to manage the family fortune. Others, such as Paris Hilton and Kim Kardashian, capitalize on being a rich socialite and transform that into celebrity status, flaunting a wealthy lifestyle.

However, new-money members of the upper class are not oriented to the customs and mores of the elite. They haven’t gone to the most exclusive schools. They have not established old-money social ties. People with new money might flaunt their wealth, buying sports cars and mansions, but they might still exhibit behaviors attributed to the middle and lower classes.

The Middle Class

Many people consider themselves middle class, but there are differing ideas about what that means. People with annual incomes of $150,000 call themselves middle class, as do people who annually earn $30,000. That helps explain why, in the United States, the middle class is broken into upper and lower subcategories.

Lower-middle class members tend to complete a two-year associate’s degrees from community or technical colleges or a four-year bachelor’s degree. Upper-middle class people tend to continue on to postgraduate degrees. They’ve studied subjects such as business, management, law, or medicine.

Middle-class people work hard and live fairly comfortable lives. Upper-middle-class people tend to pursue careers, own their homes, and travel on vacation. Their children receive high-quality education and healthcare (Gilbert 2010). Parents can support more specialized needs and interests of their children, such as more extensive tutoring, arts lessons, and athletic efforts, which can lead to more social mobility for the next generation. Families within the middle class may have access to some wealth, but also must work for an income to maintain this lifestyle.

In the lower middle class, people hold jobs supervised by members of the upper middle class. They fill technical, lower- level management or administrative support positions. Compared to lower-class work, lower-middle-class jobs carry more prestige and come with slightly higher paychecks. With these incomes, people can afford a decent, mainstream lifestyle, but they struggle to maintain it. They generally don’t have enough income to build significant savings. In addition, their grip on class status is more precarious than those in the upper tiers of the class system. When companies need to save money, lower-middle class people are often the ones to lose their jobs.

The Lower Class

The lower class is also referred to as the working class. Just like the middle and upper classes, the lower class can be divided into subsets: the working class, the working poor, and the underclass. Compared to the lower middle class, people from the lower economic class have less formal education and earn smaller incomes. They work jobs that require less training or experience than middle-class occupations and often do routine tasks under close supervision.

Working-class people, the highest subcategory of the lower class, often land steady jobs. The work is hands-on and often physically demanding, such as landscaping, cooking, cleaning, or building.

Beneath the working class is the working poor. They have unskilled, low-paying employment. However, their jobs rarely offer benefits such as healthcare or retirement planning, and their positions are often seasonal or temporary. They work as migrant farm workers, housecleaners, and day laborers. Education is limited. Some lack a high school diploma.

How can people work full-time and still be poor? Even working full-time, millions of the working poor earn incomes too meager to support a family. The government requires employers pay a minimum wage that varies from state to state, and often leave individuals and families below the poverty line. In addition to low wages, the value of the wage has not kept pace with inflation. “The real value of the federal minimum wage has dropped 17% since 2009 and 31% since 1968 (Cooper, Gould, & Zipperer, 2019). Furthermore, the living wage, the amount necessary to meet minimum standards, differs across the country because the cost of living differs. Therefore, the amount of income necessary to survive in an area such as New York City differs dramatically from small town in Oklahoma (Glasmeier, 2020).

The underclass is the United States’ lowest tier. The term itself and its classification of people have been questioned, and some prominent sociologists (including a former president of the American Sociological Association), believe its use is either overgeneralizing or incorrect (Gans 1991). But many economists, sociologists government agencies, and advocacy groups recognize the growth of the underclass. Members of the underclass live mainly in inner cities. Many are unemployed or underemployed. Those who do hold jobs typically perform menial tasks for little pay. Some of the underclass are homeless. Many rely on welfare systems to provide food, medical care, and housing assistance, which often does not cover all their basic needs. The underclass have more stress, poorer health, and suffer crises fairly regularly.

Class Traits

Does a person’s appearance indicate class? Can you tell a person’s education level based on their clothing? Do you know a person’s income by the car they drive? Class traits, also called class markers, are the typical behaviors, customs, and norms that define each class. Class traits indicate the level of exposure a person has to a wide range of cultures. Class traits also indicate the amount of resources a person has to spend on items like hobbies, vacations, and leisure activities.

People may associate the upper class with enjoyment of costly, refined, or highly cultivated tastes—expensive clothing, luxury cars, high-end fund-raisers, and frequent or expensive vacations. People may also believe that the middle and lower classes are more likely to enjoy camping, fishing, or hunting, shopping at large retailers, and participating in community activities. While these descriptions may identify class traits, they are stereotypes. Moreover, just as class distinctions have blurred in recent decades, so too have class traits. A factory worker could be a skilled French cook. A billionaire might dress in ripped jeans, and a low-income student might own designer shoes.

For famous wealthy people, making choices that do not seem to align with their economic status can often lead to public commentary. Jennifer Lopez being spotted in a dress that cost less than $30 and Zac Efron shopping at thrift stores have made the news. Others, like Halle Berry and Keanu Reeves, are known for frequent use of public transportation and relatively modest living (at least when considering to their net worth). When questioned, most point to nothing more than practicality. Lady Gaga tweeted " why do people look at me like I'm crazy when i use coupons at grocery or try bargaining at retail..." (2012). And in dense, crowded cities such as Washington, Chicago, and New York, riding the trains is often faster and easier than taking a car.