Economists Say Trillions of Dollars are Changing Hands
Economists are telling us that we are on the cusp of the greatest transfer of wealth in the history of America. Today's retirees make up one of the wealthiest segments of the U.S. population with more personal wealth than any previous generation.
It is being said those who will bequest this wealth will greatly boost the resources of the 76 million Baby Boomers. If thats true, then the next few decades will see an estimated $40.6 trillion change hands as Baby Boomers and their parents pass their accumulated wealth to their heirs.
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.
How are you Affected?
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.
If the aforementioned information has you feeling frustrated and aggravated thinking that while the rich get richer, you will only get poorer - then think again. Perhaps another way to look at this is that more and more middle class Americans are moving up the ranking and that is why the middle class seems to be fading away. Dont be too quickly convinced that this wealth transfer and shrinking middle class is all loom and doom for you.
Define the Middle Class
In earnest there really is no definitive means with which to define the middle class. This is because many people classify people based on material possessions while others classify them on lifestyle and occupational functions. Compared to Americans a decade ago, we have much more in terms of belongings. There were no computers, cell phones or two car families back then.
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?
Just because we hear that the middle class is shrinking does not mean it is true. Economists are locked in debates about whether it is true and whether or not there are amicable means with which to measure middle class stature. While some judge middle class by occupation others focus on income earning. Many economist say there is little to no shrinkage of middle class.
Consider this:
In 1979 Middle Class was defined by an income bracket of $30,000-$100,000. Today fewer people in the America live within those figures than they did in 1979
The number of people in households that bring in more than $100,000 rose (in that same time period) from 12 percent to 24 percent.
Groups earning less than $30,000 have remained consistent.
That being the case, it means the "decline" of the middle class came from people moving up the income ladder, not the other way around.
Married couples have seen median income raises of 25% since 1979.
Reading these facts, you can easily see that the decline of the middle class is more likely because they are the ones moving up rather than down the economic ladder of success!
If indeed there is this massive wealth transfer, it can mean there are millions of people with discretionary income to spend on your products or services. (What if you had a product to help them invest wisely?)
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. - 15485
Economists are telling us that we are on the cusp of the greatest transfer of wealth in the history of America. Today's retirees make up one of the wealthiest segments of the U.S. population with more personal wealth than any previous generation.
It is being said those who will bequest this wealth will greatly boost the resources of the 76 million Baby Boomers. If thats true, then the next few decades will see an estimated $40.6 trillion change hands as Baby Boomers and their parents pass their accumulated wealth to their heirs.
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.
How are you Affected?
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.
If the aforementioned information has you feeling frustrated and aggravated thinking that while the rich get richer, you will only get poorer - then think again. Perhaps another way to look at this is that more and more middle class Americans are moving up the ranking and that is why the middle class seems to be fading away. Dont be too quickly convinced that this wealth transfer and shrinking middle class is all loom and doom for you.
Define the Middle Class
In earnest there really is no definitive means with which to define the middle class. This is because many people classify people based on material possessions while others classify them on lifestyle and occupational functions. Compared to Americans a decade ago, we have much more in terms of belongings. There were no computers, cell phones or two car families back then.
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?
Just because we hear that the middle class is shrinking does not mean it is true. Economists are locked in debates about whether it is true and whether or not there are amicable means with which to measure middle class stature. While some judge middle class by occupation others focus on income earning. Many economist say there is little to no shrinkage of middle class.
Consider this:
In 1979 Middle Class was defined by an income bracket of $30,000-$100,000. Today fewer people in the America live within those figures than they did in 1979
The number of people in households that bring in more than $100,000 rose (in that same time period) from 12 percent to 24 percent.
Groups earning less than $30,000 have remained consistent.
That being the case, it means the "decline" of the middle class came from people moving up the income ladder, not the other way around.
Married couples have seen median income raises of 25% since 1979.
Reading these facts, you can easily see that the decline of the middle class is more likely because they are the ones moving up rather than down the economic ladder of success!
If indeed there is this massive wealth transfer, it can mean there are millions of people with discretionary income to spend on your products or services. (What if you had a product to help them invest wisely?)
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. - 15485
About the Author:
Rob Walcher can be considered as one who determined long ago to move out of the ranks of middle class. 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
