Trillions of $$ On the Move
In recent years the United States has been experiencing one of the greatest transfers of wealth that it has ever seen. Retirees, who are leading the country as far as wealth are beginning to hand their money down through their familial generations and many middle class Americans are finding themselves richer
It goes without saying that the lives of over 76 million Baby Boomers will be transformed with the estimated 40.6 trillion dollars changing hands. This has the potential to boost the economic status of families for generations to come.
Meanwhile we are being told that we are facing a shrinking middle class. Some want to interpret this to mean that soon we will only have the very rich and the very poor in our nation.
Americans are known for getting caught up in labels, slogans, buzz words and phrases. We accept them, embrace them and wear them often without much thought.
How do You See Yourself?
This might be a good time to stop and assess in your own mind how these assertions affect you personally; because your perspective will make a big difference in your behavior and your response.
If the aforementioned information has you feeling frustrated and aggravated thinking that while the rich get richer, you will only get poorer - then think again. Perhaps another way to look at this is that more and more middle class Americans are moving up the ranking and that is why the middle class seems to be fading away. Dont be too quickly convinced that this wealth transfer and shrinking middle class is all loom and doom for you.
What is the Middle Class?
Does anyone really know exactly what the middle class is? Of whom, specifically is it comprised? And to what, or to whom, will we compare this group? Are we comparing this group and their lifestyle to those on the streets of Calcutta, India? Or to those in America a couple of decades ago? Or to those in the below-poverty level segment of our society? And to determine what middle class is, do we compare the number of things owned today compared to things owned twenty years ago? (Did you need a computer, DVD player, second car, or a cell phone twenty years ago?)
The point is, where is your focus? If the direction of your focus is dictated by the ten oclock news, you are in deep trouble. If you believe the middle class is under the heel of the rich, and being squashed like a bug, how does that affect your behavior?
Is the Middle Class Really Shrinking?
The fact is, the shrinkage theory not engraved in stone. It is hotly debated by economists who choose to measure the middle class in different terms, whether by changing the income brackets or by focusing on job categories. Some researchers actually see a smaller shrinkage or barely any at all. (We dont usually hear much about their views.)
Consider the Facts
In 1979 Middle Class was defined by an income bracket of $30,000-$100,000. Today fewer people in the America live within those figures than they did in 1979
The amount of persons earning more than $100,000 has risen from 12 to 24 percent during the same time period.
The percentage of people in households making less than $30,000 has remained static.
Those facts alone lead to a thinking that the reason the middle class is declining is because more middle class people are making the forward to leap to upper class or wealthy standing
For married couples, median incomes have grown in inflation-adjusted dollars by 25% since 1979.
Is the sky falling or not? It all depends on a) to whom you choose to listen, b) how you interpret the statistics, and c) your perspective on life in general.
If indeed there is this massive wealth transfer, it can mean there are millions of people with discretionary income to spend on your products or services. (What if you had a product to help them invest wisely?)
So before you give up, thinking that a shrinking middle class will put you at the bottom of the barrel envision it meaning that you are actually moving up to the next level of economic status.
In recent years the United States has been experiencing one of the greatest transfers of wealth that it has ever seen. Retirees, who are leading the country as far as wealth are beginning to hand their money down through their familial generations and many middle class Americans are finding themselves richer
It goes without saying that the lives of over 76 million Baby Boomers will be transformed with the estimated 40.6 trillion dollars changing hands. This has the potential to boost the economic status of families for generations to come.
Meanwhile we are being told that we are facing a shrinking middle class. Some want to interpret this to mean that soon we will only have the very rich and the very poor in our nation.
Americans are known for getting caught up in labels, slogans, buzz words and phrases. We accept them, embrace them and wear them often without much thought.
How do You See Yourself?
This might be a good time to stop and assess in your own mind how these assertions affect you personally; because your perspective will make a big difference in your behavior and your response.
If the aforementioned information has you feeling frustrated and aggravated thinking that while the rich get richer, you will only get poorer - then think again. Perhaps another way to look at this is that more and more middle class Americans are moving up the ranking and that is why the middle class seems to be fading away. Dont be too quickly convinced that this wealth transfer and shrinking middle class is all loom and doom for you.
What is the Middle Class?
Does anyone really know exactly what the middle class is? Of whom, specifically is it comprised? And to what, or to whom, will we compare this group? Are we comparing this group and their lifestyle to those on the streets of Calcutta, India? Or to those in America a couple of decades ago? Or to those in the below-poverty level segment of our society? And to determine what middle class is, do we compare the number of things owned today compared to things owned twenty years ago? (Did you need a computer, DVD player, second car, or a cell phone twenty years ago?)
The point is, where is your focus? If the direction of your focus is dictated by the ten oclock news, you are in deep trouble. If you believe the middle class is under the heel of the rich, and being squashed like a bug, how does that affect your behavior?
Is the Middle Class Really Shrinking?
The fact is, the shrinkage theory not engraved in stone. It is hotly debated by economists who choose to measure the middle class in different terms, whether by changing the income brackets or by focusing on job categories. Some researchers actually see a smaller shrinkage or barely any at all. (We dont usually hear much about their views.)
Consider the Facts
In 1979 Middle Class was defined by an income bracket of $30,000-$100,000. Today fewer people in the America live within those figures than they did in 1979
The amount of persons earning more than $100,000 has risen from 12 to 24 percent during the same time period.
The percentage of people in households making less than $30,000 has remained static.
Those facts alone lead to a thinking that the reason the middle class is declining is because more middle class people are making the forward to leap to upper class or wealthy standing
For married couples, median incomes have grown in inflation-adjusted dollars by 25% since 1979.
Is the sky falling or not? It all depends on a) to whom you choose to listen, b) how you interpret the statistics, and c) your perspective on life in general.
If indeed there is this massive wealth transfer, it can mean there are millions of people with discretionary income to spend on your products or services. (What if you had a product to help them invest wisely?)
So before you give up, thinking that a shrinking middle class will put you at the bottom of the barrel envision it meaning that you are actually moving up to the next level of economic status.
About the Author:
Rob Walcher is an expert in the direct sales industry. He shot to the top in two different direct sales companies in a matter of 18 months and has become known as the Ten-Figure Guru. If you want to learn how to get comfortable with a few more zeroes in your income and work directly with Rob click here
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