Income Inequality In The Middle Class

It is also useful to consider how each economic class manages their money. The upper class and a large part of the middle class are knowledgeable about their wealth. Even for people in the upper and middle class who are not very knowledgeable with their wealth, they are often able to hire personal accountants and investment planners. Often is the case with individuals who are economically knowledgeable or are paying for personal wealth services, that any expendable income is invested into capital assets that earn an additional income. Stephen Moore found that the upper class spends an average of $28,272 per year on nonessential items (Moore 34). The middle class spends $15,843 per year and the lower class $11,247 per year (Moore 34). While
Income refers to the earnings that an individual makes whereas wealth is referred to as the value or worth of possessions or assets. Although wealth inequality can be used to when calculating income inequality, there are other things to consider when talking about income equality. The consumption of a society must also be considered especially when understanding that consumption is the primary reason to earn income and acquire wealth. (Nick Bunker,
Bureau of Labor Statistics’s Consumption Expenditures Survey to look at how consumption differs up and down the income ladder. Some of what he finds probably isn’t shocking to most readers: the poor spend a higher share of their income on food than the middle class and especially the wealthy, and the rich spend more relatively on entertainment. But another interesting trend he shows is that rich households spend significantly more on retirement programs and insurance plans than the poor or the middle class. In this case, the rich appear to be consuming with the future in mind.” (Nick Bunker,