Trillions of $$ On the Move
Economists are telling us that we are on the cusp of the greatest transfer of wealth in the history of America. Today's retirees make up one of the wealthiest segments of the U.S. population with more personal wealth than any previous generation.
It is being said those who will bequest this wealth will greatly boost the resources of the 76 million Baby Boomers. If thats true, then the next few decades will see an estimated $40.6 trillion change hands as Baby Boomers and their parents pass their accumulated wealth to their heirs.
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.
If there is no middle class, does that mean we will only have the very rich and the very poor? As detrimental as that may sound, it is important to avoid classification labels and look at the real picture.
How are you Affected?
If you are one of those people who see themselves as working middle class than this information may be frightening. You may also need to reconsider the way you classify people and how you feel you fit in to all of this. The way you look at your class standing has a lot to do with how well economically you will do.
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?
There really are no good contemporary parameters that describe or define the middle class. Opposed to twenty years ago it seems that even the lower class has more. Is middle class defined by the material possessions we have or is situated somewhere just below the poverty stricken members of society. Is middle class defined by a lifestyle?
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?
Just because we hear that the middle class is shrinking does not mean it is true. Economists are locked in debates about whether it is true and whether or not there are amicable means with which to measure middle class stature. While some judge middle class by occupation others focus on income earning. Many economist say there is little to no shrinkage of middle class.
Consider this:
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 number of people in households that bring in more than $100,000 rose (in that same time period) from 12 percent to 24 percent.
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.
Take a minute and think about what your knee jerk response to things is. When you hear news about a shrinking middle class do you immediately throw up your hands and figure there is no use in trying, or are you able to see through the hype and figure out the truths for yourself.
Thinking about millions of dollars being imposed from one generation to the next can actually mean that more people will have the resources to buy your product or service. If your product or service can help these people invest wisely, chances are they are going to use it..
And if you are dead set on believing that the middle class is shrinking, then believe that it is shrinking because you have determined to leave those ranks and move upward!
Economists are telling us that we are on the cusp of the greatest transfer of wealth in the history of America. Today's retirees make up one of the wealthiest segments of the U.S. population with more personal wealth than any previous generation.
It is being said those who will bequest this wealth will greatly boost the resources of the 76 million Baby Boomers. If thats true, then the next few decades will see an estimated $40.6 trillion change hands as Baby Boomers and their parents pass their accumulated wealth to their heirs.
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.
If there is no middle class, does that mean we will only have the very rich and the very poor? As detrimental as that may sound, it is important to avoid classification labels and look at the real picture.
How are you Affected?
If you are one of those people who see themselves as working middle class than this information may be frightening. You may also need to reconsider the way you classify people and how you feel you fit in to all of this. The way you look at your class standing has a lot to do with how well economically you will do.
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?
There really are no good contemporary parameters that describe or define the middle class. Opposed to twenty years ago it seems that even the lower class has more. Is middle class defined by the material possessions we have or is situated somewhere just below the poverty stricken members of society. Is middle class defined by a lifestyle?
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?
Just because we hear that the middle class is shrinking does not mean it is true. Economists are locked in debates about whether it is true and whether or not there are amicable means with which to measure middle class stature. While some judge middle class by occupation others focus on income earning. Many economist say there is little to no shrinkage of middle class.
Consider this:
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 number of people in households that bring in more than $100,000 rose (in that same time period) from 12 percent to 24 percent.
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.
Take a minute and think about what your knee jerk response to things is. When you hear news about a shrinking middle class do you immediately throw up your hands and figure there is no use in trying, or are you able to see through the hype and figure out the truths for yourself.
Thinking about millions of dollars being imposed from one generation to the next can actually mean that more people will have the resources to buy your product or service. If your product or service can help these people invest wisely, chances are they are going to use it..
And if you are dead set on believing that the middle class is shrinking, then believe that it is shrinking because you have determined to leave those ranks and move upward!
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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