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.
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.
Interestingly enough at the same time of this wealth transfer, many financial experts are exclaiming that the middle class is beginning to disappear. While some see this as an ominous expression of our financial destiny others can see the possibility that this allows.
As Americans are constantly labeling groups of people, it is probably time to think about where you stand in all of this.
How do You See Yourself?
If you are one of those people who see themselves as working middle class than this information may be frightening. You may also need to reconsider the way you classify people and how you feel you fit in to all of this. The way you look at your class standing has a lot to do with how well economically you will do.
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!
What is the Middle Class?
Does anyone really know exactly what the middle class is? Of whom, specifically is it comprised? And to what, or to whom, will we compare this group? Are we comparing this group and their lifestyle to those on the streets of Calcutta, India? Or to those in America a couple of decades ago? Or to those in the below-poverty level segment of our society? And to determine what middle class is, do we compare the number of things owned today compared to things owned twenty years ago? (Did you need a computer, DVD player, second car, or a cell phone twenty years ago?)
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?
The fact is, the shrinkage theory not engraved in stone. It is hotly debated by economists who choose to measure the middle class in different terms, whether by changing the income brackets or by focusing on job categories. Some researchers actually see a smaller shrinkage or barely any at all. (We dont usually hear much about their views.)
When you consider the following your viewpoints on your own economic standing may change drastically.
A reasonable definition of middle class is income earning between $30K-$100K per year. Facts show that fewer people live in this income range today than they did in 1979.
The amount of persons earning more than $100,000 has risen from 12 to 24 percent during the same time period.
Groups earning less than $30,000 have remained consistent.
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.
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!
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..
So before you give up, thinking that a shrinking middle class will put you at the bottom of the barrel envision it meaning that you are actually moving up to the next level of economic status. - 16732
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.
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.
Interestingly enough at the same time of this wealth transfer, many financial experts are exclaiming that the middle class is beginning to disappear. While some see this as an ominous expression of our financial destiny others can see the possibility that this allows.
As Americans are constantly labeling groups of people, it is probably time to think about where you stand in all of this.
How do You See Yourself?
If you are one of those people who see themselves as working middle class than this information may be frightening. You may also need to reconsider the way you classify people and how you feel you fit in to all of this. The way you look at your class standing has a lot to do with how well economically you will do.
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!
What is the Middle Class?
Does anyone really know exactly what the middle class is? Of whom, specifically is it comprised? And to what, or to whom, will we compare this group? Are we comparing this group and their lifestyle to those on the streets of Calcutta, India? Or to those in America a couple of decades ago? Or to those in the below-poverty level segment of our society? And to determine what middle class is, do we compare the number of things owned today compared to things owned twenty years ago? (Did you need a computer, DVD player, second car, or a cell phone twenty years ago?)
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?
The fact is, the shrinkage theory not engraved in stone. It is hotly debated by economists who choose to measure the middle class in different terms, whether by changing the income brackets or by focusing on job categories. Some researchers actually see a smaller shrinkage or barely any at all. (We dont usually hear much about their views.)
When you consider the following your viewpoints on your own economic standing may change drastically.
A reasonable definition of middle class is income earning between $30K-$100K per year. Facts show that fewer people live in this income range today than they did in 1979.
The amount of persons earning more than $100,000 has risen from 12 to 24 percent during the same time period.
Groups earning less than $30,000 have remained consistent.
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.
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!
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..
So before you give up, thinking that a shrinking middle class will put you at the bottom of the barrel envision it meaning that you are actually moving up to the next level of economic status. - 16732
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
