The Fragile Middle Class The hallmark of the middle class in theUnited States is its presumed stability.Home ownership, a college educationfor children, and other accoutrementsof middle-class status (nice cars, annualvacations, an array of consumer goods) are the symbols of middle-class prosper-ity. The American middle class is not as secure as it has been presumed to be.Personal bankruptcy has risendramatically with more than a millionnonbusiness filings for bankruptcy peryear recently. How can this be happening in such a prosperous society? Sociolo-gists Teresa Sullivan, Elizabeth Warren, and Jay Lawrence Westbrook havestudied bankruptcy, and their researchshows the fragility of the middle class inrecent times.Research Question: What is causing therise of bankruptcy?Research Method: This study isbased on an analysis of official recordsof bankruptcy in five states, as well ason detailed questionnaires given toindividuals who filed for bankruptcy. Research Results: The research find-ings of Sullivan and her colleagues debunk the idea that bankruptcy is mostcommon among poor people. Instead,they found bankruptcy is mostly a middle-class phenomenon represent-ing a cross-section of those in this class (meaning that those who are bankruptare matched on the demographiccharacteristics of race, age, and genderwith others in the middle class). Theyalso debunk the notion that bankruptcyis rising because it is so easy to file.Rather, they found many people in themiddle class so overwhelmed with debtthat they cannot possibly pay it off.Most people often file for bankruptcyas a result of job loss and lost wages.But divorce, medical problems, housingexpenses, and credit card debt also drivemany to bankruptcy court.Conclusions and Implications: Sullivanand her colleagues explain the rise ofbankruptcy as stemming from structural factors in society that fracture the stabil-ity of the middle class. The volatility of jobs under modern capitalism is one ofthe biggest factors, but add to this the“thin safety net”—no health insurancefor many, but rising medical costs. Also,the American dream of owning one’sown home means many are “mortgagepoor”—extended beyond their ability tokeep up. The United States is also a credit-driven society. Credit cards are rou-tinely mailed to people in the middle class, encouraging them to buy beyondtheir means. You can now buy virtually anything on credit: cars, clothes, doc-tor’s bills, entertainment, groceries. You can even use one credit card topay off other credit cards. Indeed, it isdifficult to live in this society withoutcredit cards. Increased debt is theresult. Many are simply unable to keepup with compounding interest andpenalty payments, and debt takes ona life of its own as consumers cannot keep up with even the interest pay-ments on debt. Sullivan, Warren, and Westbrookconclude that increases in debt anduncertainty of income combine toproduce the fragility of the middle class.Their research shows that “even themost secure family may be only a job loss, a medical problem, or an out-of-control credit card away from financial catastrophe” (2000: 6).Questions to Consider1. Have you ever had a credit card? If so, how easy was it to get? Is it pos-sible to get by without a credit card? 2. What evidence do you see in yourcommunity of the fragility or stabilityof different social class groups?
The Fragile Middle Class
The hallmark of the middle class in the
United States is its presumed stability.
Home ownership, a college education
for children, and other accoutrements
of middle-class status (nice cars, annual
vacations, an array of consumer goods)
are the symbols of middle-class prosper-
ity. The American middle class is not as
secure as it has been presumed to be.
Personal bankruptcy has risen
dramatically with more than a million
nonbusiness filings for bankruptcy per
year recently. How can this be happening
in such a prosperous society? Sociolo-
gists Teresa Sullivan, Elizabeth Warren,
and Jay Lawrence Westbrook have
studied bankruptcy, and their research
shows the fragility of the middle class in
recent times.
Research Question: What is causing the
rise of bankruptcy?
Research Method: This study is
based on an analysis of official records
of bankruptcy in five states, as well as
on detailed questionnaires given to
individuals who filed for bankruptcy.
Research Results: The research find-
ings of Sullivan and her colleagues
debunk the idea that bankruptcy is most
common among poor people. Instead,
they found bankruptcy is mostly a
middle-class phenomenon represent-
ing a cross-section of those in this class
(meaning that those who are bankrupt
are matched on the demographic
characteristics of race, age, and gender
with others in the middle class). They
also debunk the notion that bankruptcy
is rising because it is so easy to file.
Rather, they found many people in the
middle class so overwhelmed with debt
that they cannot possibly pay it off.
Most people often file for bankruptcy
as a result of job loss and lost wages.
But divorce, medical problems, housing
expenses, and credit card debt also drive
many to bankruptcy court.
Conclusions and Implications: Sullivan
and her colleagues explain the rise of
bankruptcy as stemming from structural
factors in society that fracture the stabil-
ity of the middle class. The volatility of
jobs under modern capitalism is one of
the biggest factors, but add to this the
“thin safety net”—no health insurance
for many, but rising medical costs. Also,
the American dream of owning one’s
own home means many are “mortgage
poor”—extended beyond their ability to
keep up.
The United States is also a credit-
driven society. Credit cards are rou-
tinely mailed to people in the middle
class, encouraging them to buy beyond
their means. You can now buy virtually
anything on credit: cars, clothes, doc-
tor’s bills, entertainment, groceries.
You can even use one credit card to
pay off other credit cards. Indeed, it is
difficult to live in this society without
credit cards. Increased debt is the
result. Many are simply unable to keep
up with compounding interest and
penalty payments, and debt takes on
a life of its own as consumers cannot
keep up with even the interest pay-
ments on debt.
Sullivan, Warren, and Westbrook
conclude that increases in debt and
uncertainty of income combine to
produce the fragility of the middle class.
Their research shows that “even the
most secure family may be only a job
loss, a medical problem, or an out-of-
control credit card away from financial
catastrophe” (2000: 6).
Questions to Consider
1. Have you ever had a credit card? If
so, how easy was it to get? Is it pos-
sible to get by without a credit card?
2. What evidence do you see in your
community of the fragility or stability
of different social class groups?
Step by step
Solved in 3 steps
