But just here in this thread we’ve had plenty of links to objective data and yet rich people persist in denying their wealth. I don’t think you need a lot of theory; I think something else is going on other than just ignorance (although I agree that’s part of it).
It’s not that they “want to feel middle class by comparing upwards” (virtually every American says they are middle class however rich they are), it’s that they don’t “feel rich” because they a) don’t necessarily feel secure (can’t afford to stay in retirement) and b) can’t afford things (like top private colleges) that their parents’ generation could afford. And feeling rich has very little to do with whether or not you are actually rich in absolute terms.
You’ve answered your own question about why they pretend the “majority” don’t exist. They’ve been pushed out and can’t afford to live there, so you don’t encounter them in social settings, as parents at your kids school, etc.
It’s all relative. For most families, just living in the US makes you richer than 95% of the worlds populations (clean running water, housing, good benefits, excellent produce, access to medicine, good paying jobs, good schools, etc). We don’t realize how good we have it until you look at most counties in the world.
But you encounter them whenever you buy a pack of gum or a coffee, or whenever a phone call is transferred to you…
Right, but continuing to feel that way in the face of quantifiable, objective data is something else, I think.
Sorry. I can’t resist. Loxury not “loxery”.
@socaldad2002 Your bubble is showing. I know people who do not have access to health care, Flint and other communities do not have good running water, my daughter’s friend"s family lives in a glorified shack in the country because it is cheap, etc etc.
Not if you compare to other developed nations, all of which have cheaper and better healthcare systems, making it virtually impossible to go bankrupt or become homeless because of an illness or injury. More starkly, life expectancy in the US is actually *decreasing/i in the richest country on earth…
We had much lower income for the first decades of our marriage and have had much higher income the past decade or so. I can readily say it’s much easier to have the higher income, even with higher taxes.
The reason most people believe they are middle class (from rich to poor) is because they feel they are deserving of what they have and they believe it is how most people live.
People who make 500k+ have country club memberships, go on vacations multiple times a year, drive expensive cars, have their kids at private schools. People who make 50K have their kids at public schools, go to their town’s public recreational facility, and drive basic cars. They all think what they are doing and have are all normal.
Of course people who make millions think it is strange to fly commercial and I wouldn’t be surprised if they think they are also middle class.
What’s middle class to people (without looking at actual stats)? I think it is what people think how average/normal people live. If people only interact with others who are in the similar social economic class then no matter how rich(poor) they are they’ll think they are middle class.
“Why do they cling so tightly to the illusion that they’re “middle class”?”
There are lots of snide comments made about wealthy people, including here on CC. I see it all the time and it’s not just directed at those posts whining about living on $200K or $300K. It happens when in the course of discussions on vacations, or housekeepers, or other threads where how one spends money comes up. Some get irritated by it even when posters aren’t trying to come off “high falutin’” but just being honest about how they live their lifestyle. Or comments about “spoiled rich kids”. There’s a negative connotation implied with the comments. Wealthy people are made to feel self-conscious about having it made. I think that factors in as well as the living in a bubble thing I mentioned back on the first page of this thread.
“Sorry. I can’t resist. Loxury not “loxery”.”
Actually, it is luxury. 
^^^ Finally, after 17 pages, somebody stated the obvious - thank you, @doschicos ! Besides, all wealthy are greedy, intolerant and selfish jerks. Of course, it may be possible to get an indulgence and redirect the snide by showing a proper class consciousness
Those wealthy people are such a bunch of snowflakes 
I found the source:
https://www.vox.com/2018/7/29/17627134/income-inequality-chart
“‘People who make 500k+ …have their kids at private schools”
When my daughter went to school on the East Coast she said that not only were some kids surprised that she went to public school but that they couldn’t wrap their heads around the fact that no much money you had where we live the “ thing to do” is to go the the highly competitive public high school and especially couldn’t comprehend that private school was viewed as where you went if you just couldn’t cut it at the public school.
In https://www.bankrate.com/calculators/savings/moving-cost-of-living-calculator.aspx , it shows a +94% difference overall, but if you look at the components, the main factor is housing. Here are the biggest increases:
+306 house price
+309 rent
+146 beauty salon
+89 electricity
+99 frozen corn
+73 sweet peas
+62 Parmesan cheese
Most other things had smaller increases, so the ratio of non-housing costs is less than 1.94. But note that the $156,650 versus $67,375 left over after taxes and rent comparison is a ratio of 2.32, which is greater than 1.94 anyway.
This must be regional. Being working class around us is considered a point of pride by many. I’m not sure about parents, but plenty of kids recognize that they are poor - esp those needing SAT waivers and free lunches. Can’t say they are proud of it.
While this is true, it’s the same thing some are doing on this thread by getting the feeling they aren’t rich by comparing themselves to even wealthier peers. If one takes a look at the world… easily done by travel to the non-common places or even watching a news source that isn’t US based. It’s part of why BBC is our “go to” World news source. I haven’t found a US source that seems to recognize the bulk of the world actually exists. Since most folks choose a US source (if they watch news at all outside of FB), it’s common to only vaguely realize there are plenty of other places out there. It makes its own bubble.
Actually it’s “Loxery” : The place where the 1% go to obtain their smoked salmon at prices which the unwashed masses would find obscene.
http://www.chicagotribune.com/business/ct-richest-people-in-the-world-20160121-story.html
The problem is that there is not an agreed upon definition of the word “rich.” Is it top 10%? Top 1%? Top 50%? Should we compare ourselves with our own immediate area? Our state? Our country? The entire world? According to the article I linked, most of us would be considered wealthy if we use the entire world as a referance. Maybe we should, so we can all appreciate the bounty we truly have.
Maybe “rich” is never having to consider money. Thats what hollywood indicates. Remember “Lifestyles of the Rich and Famous.” I think many of us have grown up with the idea that that is what is meant by the term “rich.” Its the way movie stars and tech CEOs live. Maybe we have unknowingly internalized an unrealistic idea of wealth, just like we have done with beauty and with our conecption of what kind of college experience everyone is entitled too.
I think this has been a very productive discussion because it has prompted me to think deeply about these issues. So, thanks everyone.
Yes, this is what I use. I definitely consider us rich. We’re not even remotely close to the richest people out there even in our area, but given what most people on our planet have in wealth… we’re in the Top 10%. If that isn’t rich I’m not sure what is. I’m not changing my definition. I don’t need to be Lifestyles of the Rich and Famous rich. I never will be. I’d be giving too much away to help others if I were in that position (perhaps investing to not run out of $$, but certainly not using oodles more myself).
To me, this life is not all about how much I can get or how easy my life can be. There are other higher priorities to me.
I agree with a pp that happiness isn’t correlated with money at all. Happiness comes from being content. If I were Lifestyles of the Rich and Famous rich - and living that lifestyle vs the helping others lifestyle - I wouldn’t be content in the least.
So we live within 50 miles of Lincoln; have a sis in SF. The numbers above comparing the situations are really spot on- probably within 10% of our situations. Even living in NE, we feel like we are doughnut-hole people. NE has very high property taxes = it’s a big state land-wise with a very small population to pay for its infrastructure. No huge equity in housing - only what you put into it; house has gone up in value maybe 10% in 15 years. We have 4 kids and all the normal costs associated. We do not feel rich at all and really can’t afford out of pocket or savings the $34K EFC.
(but - we’ve been blessed with the gift of time. jobs are not time-demanding; and we’ve made all of our kids games, events, concerts, practices etc. without any finagling. So truly, not complaining. It’s just I can’t pop on the plane and shoot all over the world like my SF single sister and we have to carefully watch every expenditure).