DC Econ: Video | BCS Moodle

What group should we measure in order to discover how the middle class is doing in America?
1. We should be measuring people in middle-income jobs so that the measure is focused specifically on the target of the middle class. We should avoid including retirees, high-income Americans, or people who are outside of the average middle-class outlook.
Does it make sense to exclude the elderly when trying to measure the progress of the middle class over time?
1. It makes sense to do this because without excluding the outliers in the study, there will be a serious difference in the outcome of the measure. It would make the measure less realistic and would overall change the average of the statistics that we are looking for. This would include a similar issue as to including ultra-wealthy people into the mix.
Why does it matter if the composition of the middle class is changing when trying to assess the performance of the economy?
1. If the middle class household income is changing, it will obviously adjust the middle class average altogether. This obviously has an impact on how the average is determined. As long as the numbers are coming from the middle-class, the measure will likely be accurate and determine an overall shift up or down in the average income of the middle class.