The Perception of the Middle Class: Rich or Poor?

Understanding economic classes can often be a nuanced topic, but one that is crucial in shaping our social and economic policies. The concept of the middle class is often defined by a bell curve standard deviation calculation using the median income as the desired result. However, this approach may not always accurately reflect the true economic status of individuals due to the infrequency of extremely rich and extremely poor individuals in the population. A more practical method might be to compare the median income with the average income, as the average income is typically higher than the median income. Many people, including those in the so-called 'middle class,' may not be aware of this difference.

Factors Influencing Perceptions of Affluence

Perceptions of wealth and economic status are heavily influenced by an individual's personal journey and socioeconomic background. For instance, being born into wealth differs significantly from working hard to accumulate wealth over time. The definition of 'rich' can also vary greatly, and the gap between different economic classes may be substantial. In my own experience, I personally do not view average people as poor; however, I can be disconnected from reality at times. This disconnection may be due to my own economic status: I feel relatively average in terms of wealth, even though, by statistical standards, I am in the top 0.1 percentile.

The Role of Human Psychology in Wealth Perception

Our perceptions of wealth are strongly influenced by human psychology, which interprets our situation and feelings in relative terms. For example, I may feel rich if all my friends earn a fraction of what I make, and conversely, I may feel poor if my friends earn more than me. The impact of wealth can be particularly significant when it affects an individual's ability to pursue certain goals. From my perspective, paying an employee an extra $20,000 is a small amount, but to another person, this sum could be life-changing.

Privilege and Reality Checks

Reminders of my own privilege can be jarring. One such incident occurred at the airport, where a conversation I had with my business partner about commission payments caught the attention of a man sitting nearby. When I casually suggested a 20,000 dollar increase, the man sitting next to me made a derogatory comment, calling me a 'rich prick.' After a moment of realization, I understood that to the other man, this 20,000 dollars could be a defining factor in the quality of life for him and his family. This event starkly highlighted the qualitative differences in perception and the tangible impact of wealth on individual lives.

The Importance of Character and Mindset

Ultimately, what matters more to me is a person's character, values, and mindset, rather than their financial status. It would be a misjudgment to assume that all rich people possess great character or intelligence, as many can be imbeciles and complete douchebags. Economic status should not be the sole determinant of a person's worth or respect. It is the values and behaviors we exhibit in our daily lives that truly define us.