Social Classes


The Importance of Social Classes in Finance

Prosperity Club helps you learn about the social classes in the United States that will allow you to better understand which defines where you are and how to move up. We also talk about whether this class division is responsible for various social and law-and-order issues.

Get a Financial Education and Become Socio-Politically Active

Understanding the division of classes and the social, political, and economic dynamics revolving around this phenomenon can be an empowering body of knowledge. It allows you to better understand your environment and identify opportunities for personal and collective growth. Being a socially aware individual helps you become aware of what’s happening around you. The social classes in the United States are as follows:


The Poor

Often people consider themselves poor because they live paycheck to paycheck, can't keep up with expenses such as car payments, credit cards, housing, or other debts. If these are your concerns, then chances are you belong to the middle class. The poor generally have no debts because they have no assets or income that they can use to qualify for loans.

They do not own anything, and many do not have bank accounts. They are at the mercy of using cash or going to places that will cash their check for an outrageous fee.

The Middle Class

The middle class is the largest social class in the United States. You are classified as a middle-class individual or family when you own a car and a home with a white picket fence. People in the middle class send their children to college, save for retirement, and pay for their medical insurance. Concerns of the middle class include a strong sense of struggling to get ahead and maintaining their lifestyles.

This struggle at times makes them feel like they are poor, when it may be that they are living beyond their means – rather than within – while not preparing for recessions, disasters, and epidemics. Sometimes, middle-class individuals feel short-changed when the government provides for the welfare of the poor or the wealthy get bailouts.


Rich vs Wealthy

Rich and wealthy should not be used synonymously. They are not the same. Being Rich has to do with income, defined as being in the one percentile of earned income.  Some may be rich and not wealthy because they spend everything they earn, living paycheck to paycheck.  

Being wealthy has to do with accumulations of financial assets. A person can be wealthy without being rich. This happens through frugality with little financial means and good money management skills, by putting discretionary income towards assets that build wealth.  

The Social Impact of Poverty in the United States

The United States falls among the countries where the division of income, social classes, and poverty strongly influence various social and crime problems. The rate of crime and violence in America is notably connected to poverty. Once we study other countries with a similar division of social classes but little impact on crime and violence, we realized that the communal and national support systems we have in place in our country are founded on misleading values of the various communities settled in the United States.

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Building a Safe, Prosperous Society Beyond Class Limitations

The distribution of social classes is an arbitrary factor that should not affect the rate of crime and violence in a society if the state takes ownership of the poor and takes care of their basic needs and income in various policies and stipends. Countries, where the division of social classes has little impact on crime, have strong support systems for the underprivileged...

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