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Originally Posted by 450SEL 6.9 Yup! After reading your initial statement, I just wasn't sure which point you believed in. It's all clear now.
According to the same study, China has a very tiny percentage of millionaires, but they average wealth is $39m v. $43m for Hong Kong millionaires. China has also not been a member of the global economy for that long so it'll take time for them to really expand their wealth classes. I consider most Chinese a rural/farming class rather than middle class.
I don't really know what to make of the middle class in America because I think there is a housing bubble. People are living vicariously off that bubble. If everyone in the "middle class" bought a house for $400,000 and it's worth $600,000 today, they ought to be getting richer. Correct?
But what if they took that $200,000 profit/equity out of their house and financed their otherwise unaffordable consumption? Say, they all buy a fancy car that depreciates like hell. Are they really better off? I really don't know the answer. I think this is happening in the middle class and even amongst the poor (though not the dirt poor class). |
I wonder, at times, if there were a study to be done on soci-ecnomic habits, I wonder if Americans(multicultural) would be the most irresponsible spenders. As a matter of fact, I have seen, heard, read, and studied that Americans are the most spenders in this world. So, with that said, I guess it is safe to say that the middle class will only grow, because of the market in the US.
You are also right in your assertion about borrowing against their equity. Personally, Americans are in a hurry for everything. I think the market is the reason why, because all these companies are constantly promoting new ideas, software, products, cars, etc. We buy, buy, buy and buy. We cannot sit down and deal with what we have. It is truly a consumers market and we will consume. Look at the fast food chains. That is an American icon. It is everywhere!