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Social Class Debt

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Examining the Correlation between Social Class Position and Debt
Introduction
This paper looks into the correlation between social class and the prevalence of debt. More specifically, it examines the debt level of the American middle class. The middle class is a broad term given to American households whose yearly income measures from ~$25,000 to ~$100,000 according to the non-profit organization, The Drum Institute for Public Policy. Depending on the model used, the middle class makes up somewhere between 25 to 66 percent of all households in America. Due to the far-reaching nature of the class, most sociologists divide the middle class into two sub-classes: the upper or professional middle class and the lower-middle class. The professional …show more content…
Wolff, I hypothesize that the middle class is most affected by debt, and I expect housing debt to be among the leading causes. Due to the collapse of the housing bubble in 2007, the prevalence of home-equity loans to subsidize consumer spending, the relatively average income of the middle class and the currently high unemployment rate in the U.S., the middle class is most likely to be negatively affected. The upper class has the means to cover their losses and have diversified asset portfolios. The lower class, shackled to a lower income bracket, is much less likely to own a house, and therefore would be hypothetically less affected by the market …show more content…
The remaining 23 percent of callers fell into the designation of lower class. None of our callers fell into the designation of upper class. Only 75 percent (43 callers) gave the source of their debt. Of those 43 callers, 30 percent reported either their home or car to be the source of their debt. 30 percent reported student loans as the source of their debt. Of the remaining 40 percent: 11 percent of callers attributed their debt to credit cards, 4 percent blamed their family, and the final 25 percent of callers provided miscellaneous reasons for their debt. 56 percent of callers were female, therefore males made up the remaining 44 percent of callers. 65 percent of callers reported that they were married, 24 percent were single, and the remaining 11 percent did not report their marital status. Only 71 percent (41 callers) of our 57 callers reported their level of debt. Of those 41 callers, 56 percent of told Dave Ramsey that their debt was under $50,000, 19 percent reported that their debt was between $50,000 and $100,000, while the remaining 25 percent reported a debt larger than $100,000. A surprising 50 percent of callers lived in southern states, 17 percent lived along the pacific coast, 11 percent lived in the north, 11 percent lived in the western half of the United States, and the final 1 percent (1 caller) was an international caller. The large

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