What Is the Upper Class?
The term upper class refers to a group of individuals who occupy the highest place and status in society. These people are considered the wealthiest, lying above the working and middle class in the social hierarchy. Individuals who make up the upper class have higher levels of disposable income and exert more control over the use of natural resources. While the upper class makes up a small percentage of the overall population, it controls a disproportionately large amount of the overall wealth.
Key Takeaways
- The term upper class refers to a group of individuals who occupy the highest place and status in society.
- Individuals who make up the upper class have higher levels of disposable income and exert more control over the use of natural resources.
- This class makes up a small percentage of the overall population but controls a disproportionately large amount of the overall wealth.
Understanding Upper Class
The term upper class is a socioeconomic term used to describe those who reside on the highest levels of the social ladder above the middle and working or lower classes. They generally have the highest status in society and hold a great deal of wealth. Because of this, they also carry a considerable amount of power—politically, economically, and financially.
Members of the upper class carry a considerable amount of power—politically, economically, and financially.
This class was historically dominated by land-owning nobility and aristocrats. People who fell into these groups didn't have to work for a living. Instead, they inherited their money or lived off their investments. Because this group was primarily composed of large, wealthy families, those who didn't belong—including anyone who managed to amass a considerable amount of wealth—were barred from calling themselves members of the upper class.
The definition of the term has changed over time to include a wider range of people. Today, celebrities, politicians, investors, and other wealthy individuals fall into this group. In the United States, those who lived—and continue to live—in leadership roles in society are often considered part of the upper class. These are people whose status has been passed down through generations.
According to a 2018 study by Pew Research Center, 19% of American adults were part of upper-class households. These families earned a median income of $187,872 in 2016, compared to52% who made up the middle class and 29% who made up the lower class. The wealth held by these individuals has led to a disparate gap in income and power over those in other classes.
While those in the upper class exert significant control over economic and political developments, most production activities and consumption are done by the working and middle classes. The working and middle classes handle most of the economic production and consumption because they are much larger in number than the small upper class and require a more significant percentage of the resources.
The Upper Class vs. Other Classes
As mentioned above, income and power generally separate the upper class from the other classes. The middle-class generally describes households with people who fall between the upper and working or lower class. The parameters of the middle-class are fairly fluid. Its application to income, education, and social status varies based on location and other factors. Many people who make up the middle-class work as professionals and civil servants, and own property.
The working or lower class refers to those who make up the lowest level of society. These individuals often work in low-paying, blue-collar jobs that require physical labor and limited skill. Working or lower class individuals earn much less than the upper and middle class and hold very little power in society.
In a frontier or emerging economy, there are often only two classes—the working class, or poor, and the upper class, or elite. As an economy develops and better jobs and infrastructure create more wealth, a middle class emerges. The newly emerged middle class starts to have more disposable income, which further advances the economy.
Eventually, a divide within the middle class emerges and separates the average middle class from those who have significantly more disposable income but aren't yet considered rich. These are the upper-middle-class people. The upper-middle-class usually evolves out of people from the middle-class tier who are particularly resourceful or who achieve higher levels of education than the rest of the middle class. Examples of these people in today's society are doctors and lawyers. Although they are not Bill Gates, they do make more money than teachers.
FAQs
Today, celebrities, politicians, investors, and other wealthy individuals fall into this group. In the United States, those who lived—and continue to live—in leadership roles in society are often considered part of the upper class. These are people whose status has been passed down through generations.
What is the upper class salary? ›
In 2021, the median household income is roughly $68,000. An upper class income is usually considered at least 50% higher than the median household income. Therefore, an upper class income in America is $100,000 and higher.
What is the difference between upper middle class and upper class? ›
Upper middle class might mean earning 15-50% above the median with a comfortable financial cushion, while the upper class generally refers to the top 1-3% earners with substantial wealth and investment-derived income,” said Jeff Rose, CFP and founder of Good Financial Cents.
What is the major source of income for members of the upper class? ›
The main distinguishing feature of this class is their source of income. While the vast majority of people and households derive their income from salaries, those in the upper class derive their income primarily from investments and capital gains.
What are examples of upper class stereotypes? ›
Class Traits
People may associate the upper class with enjoyment of costly, refined, or highly cultivated tastes—expensive clothing, luxury cars, high-end fund-raisers, and opulent vacations.
How can you tell someone is upper class? ›
“Don't judge a book by its cover.” Someone who grew up in an upper-class family may appear like anyone else. However, they may be well-educated, culturally-astute, be able to play a musical instrument (like piano), be well-rounded, polite, thoughtful, and easy to converse with.
Are you upper class if you are a millionaire? ›
According to research from Ameriprise Financial, 91% of U.S. millionaires don't classify themselves as upper-class rich. The study also found that 60% and 31% of investors with $1 million or more surveyed consider themselves as “upper middle class” and “part of the middle class,” respectively.
What are upper class jobs? ›
Corporate executives: CEOs, CFOs, and other high-level executives of large companies are often considered to be in the upper class due to their substantial salaries and influential positions. Upper-class jobs generally refer to occupations that offer higher salaries, social status, and greater prestige.
What is considered wealthy? ›
According to Schwab's 2023 Modern Wealth Survey, Americans perceive an average net worth of $2.2 million as wealthy. Knight Frank's research indicates that a net worth of $4.4 million is required to be in the top 1% in America, a figure much higher than in countries like Japan, the U.K. and Australia.
What makes someone upper class? ›
The upper class comprises households with substantial income from wealth or entrepreneurial activity, or in which the breadwinner is in managerial or professional employment. At the top, with incomes well above the mean, is an upper class comprising people with assets or skills that are internationally transferable.
What are the annual wages of top earners?
| Bracket | Average annual wages |
|---|
| Top 0.1% | $3,212,486 |
| Top 1% | $823,763 |
| Top 5% | $342,987 |
| Top 10% | $173,176 |
Apr 30, 2024
aristocracy. nounas in privileged class, government. elite. gentility. gentry.
What salary is considered upper class for a single person? ›
Upper middle class: Anyone with earnings in the 60th to 80th percentile would be considered upper middle class. Those in the upper middle class have incomes between $89,745 and $149,131. Upper class: Finally, the upper class is the top 20% of earners and they have incomes of $149,132 or higher.
What are three characteristics of the upper class? ›
MANAGERIAL/UPPER-CLASS
- Owning one or multiple homes, travel (including international)
- Dependent on salaries, not investments, to pay bills — mid-level to high-level managerial or professional jobs.
- Education at elite/selective colleges or at public universities often without student loans.
The most common types of income are active, passive, and portfolio. Active income includes salaries, wages, commissions, and tips. For income from a business to be considered active rather than passive, the owner must satisfy the requirements for material participation, which is based on hours worked or other factors.
Who were considered the upper class? ›
The American upper class can be broken down into two groups: people of substantial means with a history of family wealth going back a century or more (called "old money") and families who have acquired their wealth more recently (e.g. fewer than 100 years), sometimes referred to as "Nouveau riche".
What is the upper class type? ›
The upper class is the social class composed of those who are rich, well-born, powerful, or a combination of those. They usually wield the greatest political power. In some countries, wealth alone is sufficient to allow entry into the upper class.
What is upper class behavior? ›
Demonstrating politeness, restraint, and consideration in public spaces is a basic part of upper-class manners. Conducting oneself with restraint and poise in public settings means not drawing undue attention or behaving in a way that's considered unseemly.
What are upper class facial features? ›
Each of these facial features also made faces appear more incompetent, cold, or untrustworthy. In contrast, faces perceived as rich were narrower and longer with upturned mouths and lighter, warmer complexions – features which corresponded to those associated with perceptions of competence, warmth, and trustworthiness.
