It takes less to be middle class in MS. Here’s how much you have to make on the MS Coast

Over the last decade, what it means to be “middle class” has drastically changed. A recent study done by GOBanking Rates reveals that the scale of “middle class” income has shifted remarkably, increasing nationally by an average of 42%.

In the U.S. in 2012, the lowest salary you could make and still be considered “middle class” was $35,364. The most you could make without tipping over into “higher class” was $106,092.

Fast forward to 2022 and the lowest salary to qualify increased to $50,099 and topped off at $150,298.

Although this is a national average, it turns out that the shift varies from state to state.

What does middle class mean in Mississippi?

Researchers defined middle class as those with two-thirds to double the state’s median income. Mississippi had the lowest annual income required to be middle class, thanks to lower wages across the board. In 2022, a $35,353 household income qualified as middle class on the Mississippi Coast.

Maryland has the highest household income needed to be middle class. There, it takes at least $65,641 to be a part of the middle class.

Alaska’s middle class has changed the least in the last decade. The middle class income increased 23.5% between 2012 and 2022.

The income it took to be middle class in Oregon increased by 53.15% (the highest in the country) from 2012 to 2022.

What defines the middle class?

A poll from The Washington Post reveals that many Americans agree about what it means to be middle class. The poll also reveals that many Americans sorely underestimate the income it takes to meet the below criteria. This is directly correlated to the changing demographics of the middle class and the skyrocketing rate of inflation. Here are the top six factors:

• A secure job

• Ability to save money for the future

• Ability to afford an emergency $1000 expense without debt

• Ability to pay bills on time without worry

• Health insurance

• Ability to retire comfortably

A few more esoteric factors that appeared on the poll: paid sick leave; ability to eat at a restaurant anytime you want; time and money for vacations.

Why doesn’t my money go as far as it used to?

The Sun Herald spoke to Dr. Fady Mansour, Ph.D. The director of the Butler Center for Research and Economic Development and Associate Professor of Economics at the Turner College of Businesses and Technology at Columbus State University. He helped to make sense of the very confusing fiscal situation we’re currently facing.

Even though wages are rising, they are not rising fast enough to keep up with the increase of the cost of goods and the percent increase of inflation. This can be particularly tricky for those in the middle class classification because it seems like they have more money than they do, explains Mansour.

What is a nominal wage vs. real wage

Mansour attributes this to the idea of a “nominal” vs. a “real” wage. He explains that a “nominal” wage is just exactly what you’re paid. You can look at your pay stub or W-2 to see that number. On the other hand, the “real” wage is the effective buying power of your earnings and is “the nominal wage minus inflation.”

Mansour also warns that “not everyone benefits from a wage increase” but everyone is forced to contend with the cost of inflation. How the money circulates and where it finally winds up, asserts Mansour, is the ultimate scale of wealth and financial success.

Top 10 states

Below are the top 10 states, based on how much the middle class income increased in a decade:

Oregon

• Middle class income range in 2022: $51,088 to $153,264
• Middle class income range in 2012: $33,357 to $100,072
• 10-year change in middle class income: 53.15%

Washington

• Middle class income range in 2022: $60,217 to $180,650
• Middle class income range in 2012: $39,583 to $118,748
• 10-year change in middle class income: 52.13%

Colorado

• Middle class income range in 2022: $58,399 to $175,196
• Middle class income range in 2012: $38,829 to $116,488
• 10-year change in middle class income: 50.40%

California

• Middle class income range in 2022: $61,270 to $183,810
• Middle class income range in 2012: $40,933 to $122,800
• 10-year change in middle class income: 49.68%

Idaho

• Middle class income range in 2022: $46,809 to $140,428
• Middle class income range in 2012: $31,343 to $94,030
• 10-year change in middle class income: 49.34%

Utah

• Middle class income range in 2022: $57,889 to $173,666
• Middle class income range in 2012: $38,776 to $116,328
• 10-year change in middle class income: 49.29%

Montana

• Middle class income range in 2022: $44,227 to $132,682
• Middle class income range in 2012: $30,304 to $90,912
• 10-year change in middle class income: 45.95%

Tennessee

• Middle class income range in 2022: $42,690 to $128,070
• Middle class income range in 2012: $29,427 to $88,280
• 10-year change in middle class income: 45.07%

Rhode Island

• Middle class income range in 2022: $54,247 to $162,740
• Middle class income range in 2012: $37,401 to $112,204
• 10-year change in middle class income: 45.04%

Massachusetts

• Middle class income range in 2022: $64,337 to $193,010
• Middle class income range in 2012: $44,439 to $133,316
• 10-year change in middle class income: 44.78%

Do you consider yourself middle class? Did your parents or grandparents? What other factors do you think contribute to being a part of this class?

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