Sunday, November 03, 2024

Opinion

 J.D. Vance paints himself as an everyman, but he grew up in Top 10% of households

Megan Thiele Strong
Fri, November 1, 2024

As the vice presidential candidates battle it out for the support of the heartland each claim an allegiance to the working class.

According to his memoir, when Republican vice presidential nominee Sen. J.D. Vance of Ohio was young, 9 or 10, his mother and stepfather had a combined income of over $100,000.

Back then, in 1993, I was 13 and living in Missouri. My parents were separated. They might have earned $35,000 working full-time, combined. I know how unattainable $100,000 was back then in small towns in the heartland.

Going back three decades to 1993, a household income of $100,000 in the United States put a family in the 95th percentile; a household income of $100,000 was an exclusive amount of money. And, it wasn’t middle class money; it was upper class household income.

Beyond time, geography impacts value; we know $100,000 doesn’t have the same purchasing power in Los Angeles as it does in a small town in the Midwest. Looking at Middletown, Ohio, specifically, the most current numbers reveal only 10% of the households have access to over $100,000 and 50% have $36,900 or less. Thirty years later, and a household income of $100,000 will still preclude small town Ohioan households with an income of $100,000 from an easy acceptance into either the lower or middle classes.

Poverty and hardship are as American as apple pie


Social class is complex and debated. Are there two classes, the owners and workers? Three classes? Are there six, upper, upper-middle, middle, lower-middle, lower and the underclass? Regardless of which camp we fall, social scientists generally describe social class as a combination of one’s income, wealth, education and occupation. These factors are fundamental components of our life chances.

In his memoir, J.D. Vance acknowledges that it was difficult to understand how his household, in Ohio, in 1993, with a combined income of over $100,000, had financial strain.

He concludes that socio-economically deprived people make bad choices and overspend. However, people of all classes can make bad decisions and according to social scientist Juliet Schor, overconsuming is a problem that does not stop as households ascend the class ranks. Rather as people earn more, they “need” more.

Vance’s household income was not static. His mother divorced and he moved in and out of various socio-economic spaces. However, most of us will never have the opportunity to be in a household that has access to the top 10% of household incomes, even for a short time. Rather, it is poverty, and the hardship that comes with it, that is as American as apple pie.
U.S. voters tend to vote against their own economic interests

Leaders desire to be seen as “one of us” and we love a good American Dream story. They give hope and inspire us. If we see Vance as someone who understands the struggle, he can garner the support of class under resourced Americans.

And, because Americans have a complicated relationship with social class and politics, he can gain that trust while campaigning with a former president whose policies have been against the needs of the working class.

Americans overwhelmingly lack class consciousness, with many of us voting against our own economic interests. In 2023, nationally, 62% of households had $100,000 or less. To be in the 95th percentile, a household would have needed $295,020. Twenty-five percent of households still made $36,542 or less. We are a wealthy nation, with wealthy leaders, but many of our households are nowhere close.

It’s time we shed our class dissonance and hold politicians accountable. Let’s rally and vote as though we can create socio-economic sustainability for all of us.


Megan Thiele Strong

Megan Thiele Strong, Ph.D., is a sociology professor at San José State University and a Public Voices Fellow of the TheOpEdProject. She received her undergraduate degree from Vanderbilt University in Nashville.

This article originally appeared on Nashville Tennessean: Opinion: Republican VP nominee J.D. Vance did not grow up an everyman


Here are 5 signs you’ve finally made it to the American ‘upper class’— and how to keep soaring higher in 2025





Maurie Backman
Sat, November 2, 2024


If you've ever wondered whether your income is considered “upper class,” Pew Research Center has an answer. It defines upper-income households as earning more than $169,800 as of 2022, based on a three-person household in a metropolitan area.

But the reality is that claiming this status isn’t just a matter of earning a certain income. It also boils down to reaching certain financial milestones. Here are a few signs that you’re part of the American upper class
.

1. You have assets aside from just a savings account

It’s essential to always have money for emergencies in a savings account. In fact, at a minimum, you should aim for enough savings to cover three months of essential expenses. That could get you through a period of unemployment or pay for an unexpected home repair, among other things.

New York Life's 2024 Wealth Watch survey found that Americans with an emergency fund have an average of $29,741.87 tucked away. But if you have assets outside of a savings account or emergency fund, it’s a sign that you may be part of the upper class. Those assets could include a well-funded IRA, a portfolio of stocks or real estate holdings.

And the good news is that having these assets makes you more likely to stay in the upper class. If your portfolio is worth $50,000 today but grows at an annual 7% return over the next 25 years, a bit below the stock market’s average, you’d end up with over $271,000. And if you keep funding your portfolio, you can grow your wealth even more.

Similarly, if you directly invest in real estate and purchase a property, you can charge rent to cover the mortgage and homeownership costs. From there, your property might gain a lot of value through the years, adding to your net worth.

2. You've got wiggle room in your budget for extras

Many Americans must follow a strict budget to avoid debt. But if you have room in your budget for extras beyond your essential bills, it’s a sign that you’re in great shape financially.

That said, you don’t want to spend your money mindlessly just because you have it. Instead, ensure the extras you’re paying for are worthwhile.

It’s not worth spending $80 a month on a gym membership you barely use or $60 a month on a subscription box you mostly toss out. That’s money you could save or invest to grow even more wealth.

3. You're looking at upgrading your home and car

Living within your means is an excellent way to increase your net worth. And keeping big expenses like your home and car as low as possible allows you to carve out room for savings. But if you’re at a point where you’re ready to upgrade your home and car, and you can do so without limiting your ability to keep saving, then it’s a sign you’ve reached a certain level of wealth.

That said, you don’t want to go overboard on housing and vehicle expenses. Aim to keep housing costs (including mortgage payments, property taxes, home insurance and other predictable expenses) to 30% of your income or less. And aim to spend no more than 15% on transportation, including car payments and auto insurance. If you overspend in these areas, you risk falling victim to lifestyle creep, which could stunt your savings efforts.


4. You're buying back more of your time

When there’s not enough money to go around, doing your own cooking, house cleaning and home maintenance makes sense. The money you’d pay someone else to do these tasks is money you might need to save.

But if you’re in a place where you can afford to buy back more of your time by paying for meal kits or takeout, a housekeeper, a lawn service and a handyman service when you need it, then it’s a sign that you’ve reached upper class territory. And frankly, you shouldn’t feel guilty about throwing money at these tasks if you can swing that while continuing to save and invest.

According to Harvard Business Review, people who buy time tend to be happier. So, there’s nothing wrong with paying for services that allow you to spend your free time pursuing hobbies, bonding with loved ones or simply relaxing after a hard day of work.
5. You don't worry about money nearly as much as you once did

It's unfortunate that 46% of Americans say concerns about their finances impact their lives daily or weekly, according to a 2024 report by Ally Financial and mental health company Calm. And 54% of Americans say that just thinking about money makes them feel worried.

Now, even very wealthy people sometimes worry about not having enough money. But if you’re not nearly as concerned about your financial situation as you once were, it might be a sign that you’ve made it to the upper class.

And from here on out, all you need to do is maintain the good habits that got you to where you are. These include not spending your entire paycheck each month, avoiding debt, and continuing to save and invest so you can continue increasing your net worth year after year



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