THE VARYING DEFINITIONS OF CANADA’S MIDDLE CLASS

There are more than 100 ways to define the middle class based on income alone. Some methods use pre-tax income while others say after-tax is the true measure; some focus on household incomes while others target individual earnings. Here are some definitions: $41,800 to $125,300 Finding the median income and then identifying a range around it is perhaps the most common method. One measure defines the middle class as families who earn between 50 per cent and 150 per cent of median income. Economist Charles Beach says that would result in a middleclass range of family income between $41,800 and $125,300. $46,200 to $142,500 The percentile-based method divides Canadians into deciles to capture the middle portion of incomes, usually the middle 60 per cent of the population. That would result in a middle-class family income range between $46,200 and $142,500. $70,500 to $100,100 One of the narrowest definitions selects just the middle-fifth of the income distribution, putting the range of income for middle class between $70,500 to $100,100. $245,000 to $575,000 One popular defining characteristic of the middle class is its members’ ability to accumulate wealth and generate a flow of income to raise their well-being. Median net worth in 2012 was $243,800, so any family with wealth around that range would be considered middle class. The middle two quintiles have a net worth between $245,000 and $575,000. 70 per cent Some researchers define members of the middle class based on their possessions and lifestyle. This definition includes the wide segment of Canadians who have the means to own assets. Given that about 70 per cent of Canadians own homes, this definition is one of the broadest measures. 52 per cent Self-definition is a subjective method, but provides a good indicator of how people feel. Self-reporting Canadians tend to move themselves down in class levels compared to where statisticians would calculate they are based on earnings. The number of Canadians who identify as middle class has dropped off significantly since the recession. In a January survey conducted by Pollara Strategic Insights, 52 per cent of Canadians identified as middle class; 36 per cent identified as working class; 9 per cent identified as poor; and 3 per cent identified as upper class. We asked the three major federal parties for their definition of the middle class. Here’s what they said: The Liberals: The official response: “We refer to ‘the broadest swath of Canadians whose working income gives them the capacity to provide decent housing, quality of life, and a good education for their families, while saving for a dignified retirement.’ ” The unofficial definition: The Liberals’ middle-class tax cuts would apply to individuals earning a pre-tax income of $44,700 to $89,401. The NDP: The official response: “Millions of Canadians identify themselves as middle class. They work hard, play by the rules and strive to give their children a better future.” The unofficial definition: The NDP have suggested in the past that their definition focuses on the middle 60 per cent of earners. The Conservatives: The official response: “We don’t believe in the politics of division and so-called class warfare.” The unofficial definition: The Tories have suggested that families with kids that have a pre-tax income of $120,000 or below are part of the middle class. Sunny Freeman