Money is Beginning to Change Hands
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
This trillion dollar money transfer is subsequently putting wealth and more resources available to an estimated 76 million baby boomers. Economists estimate that as much as $40.6 trillion dollars will change hands.
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.
As Americans are constantly labeling groups of people, it is probably time to think about where you stand in all of this.
Does this Affect You?
The answer to this question lies in how you see yourself in the greater economic picture. If you feel that you are one of the poor then you are probably throwing up your hands in disgust and feeling like this means the rich will get richer, while you will end up having less.
For instance, you hear of this massive wealth transfer and that the middle class is quickly disappearing, then you might wring your hands and declare that the rich are getting richer and the poor are getting poorer. And you are convinced without a doubt that you are in the latter group!
Define 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?
What I am trying to do is get you to focus on your thinking. If you are using outside mediums to determine what middle class means to you than you will undoubtedly feel persecuted by rich and wealthy millionaires taking the whole kitty. Your thinking quite effectively dictates your behavior and your ability or inability to see yourself as one of the rich.
Is their Truth to the Shrinking Theory?
There are many economists who are not convinced that there really is a shrinkage in the middle class. The viewpoints depend largely on which parameters the economist uses to define middle class. Some define middle class by income brackets or occupational categories. The truth is that many economists say for certain that there is no real shrinking middle class theory.
Consider the Facts
Fewer people today live in households with incomes between $30,000 and $100,000 (a reasonable definition of "middle class") than in 1979.
The amount of persons earning more than $100,000 has risen from 12 to 24 percent during the same time period.
While that looks good for the middle class the same research suggests that households making less than $30k per year are remaining 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.
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..
If you must believe that the middle class is shrinking, think of it has shrinking because they are moving on up which means more money in the pot for you to collect upon. - 16089
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
This trillion dollar money transfer is subsequently putting wealth and more resources available to an estimated 76 million baby boomers. Economists estimate that as much as $40.6 trillion dollars will change hands.
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.
As Americans are constantly labeling groups of people, it is probably time to think about where you stand in all of this.
Does this Affect You?
The answer to this question lies in how you see yourself in the greater economic picture. If you feel that you are one of the poor then you are probably throwing up your hands in disgust and feeling like this means the rich will get richer, while you will end up having less.
For instance, you hear of this massive wealth transfer and that the middle class is quickly disappearing, then you might wring your hands and declare that the rich are getting richer and the poor are getting poorer. And you are convinced without a doubt that you are in the latter group!
Define 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?
What I am trying to do is get you to focus on your thinking. If you are using outside mediums to determine what middle class means to you than you will undoubtedly feel persecuted by rich and wealthy millionaires taking the whole kitty. Your thinking quite effectively dictates your behavior and your ability or inability to see yourself as one of the rich.
Is their Truth to the Shrinking Theory?
There are many economists who are not convinced that there really is a shrinkage in the middle class. The viewpoints depend largely on which parameters the economist uses to define middle class. Some define middle class by income brackets or occupational categories. The truth is that many economists say for certain that there is no real shrinking middle class theory.
Consider the Facts
Fewer people today live in households with incomes between $30,000 and $100,000 (a reasonable definition of "middle class") than in 1979.
The amount of persons earning more than $100,000 has risen from 12 to 24 percent during the same time period.
While that looks good for the middle class the same research suggests that households making less than $30k per year are remaining 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.
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..
If you must believe that the middle class is shrinking, think of it has shrinking because they are moving on up which means more money in the pot for you to collect upon. - 16089
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
