What do you understand by middle class? Give some economic indicators.
The middle class comprises three sub-classes: the upper middle, middle middle and
lower middle. And the whole middle-class is occupied by a socio-economic position intermediate between those of the lower classes and the upper class. Middle-class can be categorized by looking at availability or non-availability of the following amenities to each
household in the country:
Availability of a House and other Real Assets.
Availability of Assets (Radio, Television, Telephone, Vehicles, etc.). Availing Banking Services etc.
Though, there is no clearly defined economic indicator for classifying the class of people,
but some reports gave the following statistics.
The upper middle class should have annual income of US $600,000 each in terms of
Purchasing Power Parity (PPP). (Please note that the calculation of PPP is complicated, but suffice it to say that it is based on what a unit of currency can purchase in one country compared to what the same currency can purchase in another country. It is also known as the "law of one price" that governs the price level of general goods and services between the two countries). The middle middle class should have annual income of US $20,000 per year each in terms of PPP. And the lower middle class is mostly the relatively affluent people in the rural areas of India. The middle classes on the whole (i.e. upper middle + middle middle + lower middle classes) is expected to grow by 5 to 10 percent annually.
lower middle. And the whole middle-class is occupied by a socio-economic position intermediate between those of the lower classes and the upper class. Middle-class can be categorized by looking at availability or non-availability of the following amenities to each
household in the country:
Availability of a House and other Real Assets.
Availability of Assets (Radio, Television, Telephone, Vehicles, etc.). Availing Banking Services etc.
Though, there is no clearly defined economic indicator for classifying the class of people,
but some reports gave the following statistics.
The upper middle class should have annual income of US $600,000 each in terms of
Purchasing Power Parity (PPP). (Please note that the calculation of PPP is complicated, but suffice it to say that it is based on what a unit of currency can purchase in one country compared to what the same currency can purchase in another country. It is also known as the "law of one price" that governs the price level of general goods and services between the two countries). The middle middle class should have annual income of US $20,000 per year each in terms of PPP. And the lower middle class is mostly the relatively affluent people in the rural areas of India. The middle classes on the whole (i.e. upper middle + middle middle + lower middle classes) is expected to grow by 5 to 10 percent annually.
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