3 ms·
> Socioeconomic class is not defined by assets, but rather by income or if you want to get a little more sophisticated (to cover the case of the young person ab
by hiatus 2y ago
> Socioeconomic class is not defined by assets, but rather by income or if you want to get a little more sophisticated (to cover the case of the young person about to graduate from medical school) potential to earn income
This doesn't make much sense to me. So a retired wealthy person who can draw income from investments is not upper class, even if they draw an income that would be considered middle class or lower?
- hollerith 2y agoThe point is that although income is not a perfect proxy for the nuanced thing that we mean by "socioeconomic class", it is a better proxy than net worth is.
- hiatus 2y agoWhy is it better if it can't account for things like inherited wealth? Are the descendants of billionaires not upper class at birth, with no income?
- hollerith 2y agoIt does account for the person who inherited $10 million or more because $10 million throws off at least $300,000 a year in reliable investment income, making that person upper class according to the income proxy.
- WWLink 2y agoMy standard for lower income class / middle income class / upper income class (not social, just income) is something along the lines of: Lower class: Has little or no savings, probably works a "gig" job that pays on 1099s. Maybe has several part time jobs. Middle class: Has 3-6+ months savings, the vast majority of their income is reported on a single W2 or 1099. Or they own a sole proprietorship kind of business. Either way, the majority of their income is coming from work or services. Net worth: Probably under $5M. Upper class: The vast majority of their income is reported as capital gains. Owns multiple real estate properties. Net worth: 5-$500M. Elite Upper class: I don't even know what to describe this as