Why Politicians Manipulate the Concept of "Middle Class"

 Political rhetoric often exaggerates the share of the middle class for the following key reasons:

1. Political Attracting and Mobilizing

• Ideal Electorate: The middle class is considered the backbone of a stable society and democracy. It is associated with hard work, responsibility, moderation, and law-abidingness.

  Universal Appeal: When a politician says he "works for the middle class," he is aiming to appeal to the widest possible range of voters, because most people identify as part of it, even if their financial situation does not meet strict economic definitions. No one wants to define themselves as "lower class."

  Conveying Stability: A large middle class creates an impression of social stability and economic prosperity, which is the goal of every government.

2. Blurring the Economic Definition

• Lack of Clarity: There is no single, universal definition of the middle class. Economists use criteria based on income relative to the median income (e.g., between 75% and 200% of the median income), but policymakers often use broader and more subjective definitions based on lifestyle (owning a home, a car, and the ability to vacation).

  Focus on Income, Not Net Worth: Policymakers prefer to talk about income (which can be temporarily high) and ignore net worth/wealth (assets minus liabilities, i.e., credit). This allows them to include people with high incomes but high debt (large mortgages, loans) who would otherwise be excluded from the financially stable middle class. 

  
  
  

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🏦 The Relationship Between Credit and the "Middle Class"

Category	Economic Analysis	Political Rhetoric
Financial Stability	Financial stability is contingent upon one's net worth, which is the sum of one's assets, liabilities, and credit. The middle class should have a positive net worth and low reliance on debt for daily needs.	Debt is ignored. The focus is on the ability to obtain credit for housing and education, which is portrayed as a "middle-class achievement."
Effect of Credits	Credit, especially consumer credit, can turn an "average" class into an economically vulnerable class. Debt undermines long-term stability.	Lending is a driver of consumption and economic growth. The ability to borrow is presented as access to a "middle-class" lifestyle.

🎯 The Debate About the "Indebted Middle Class"

• 10% Without Credit: If only 10% of the world's population is without any credit, the data suggests that the majority of the population, including many high-income earners, relies on debt to purchase major assets (home, car) or to cover expenses.

  "External" Possession: A person who owns a large house and an expensive car appears to be part of the middle or even upper class. However, if mortgages and loans finance these assets almost entirely, their true financial freedom remains minimal. One job loss could bankrupt them.

Politicians ignore this fact because:

Recognizing this fact requires uncomfortable decisions to reduce debt and actually raise incomes, rather than simply encouraging consumption through lending.

Bank borrowing is often an indicator of "confidence" in the future economy and is desired by the financial sector, which has influence over policy.

Thus, the political narrative of a large "middle class" is more of an ideological tool, intended to create a sense of a broad base of prosperous, stable citizens, while the financial reality for many of these people is that they are on the verge of high indebtedness.