Glossary of terms
When used in any piece of reporting, it may be necessary to define these terms for a public audience.
American Dream: a term believed to have been coined by American author James Truslow Adams in his 1931 book The Epic of America when he said, “It is not a dream of motor cars and high wages merely, but a dream of social order in which each man and each woman shall be able to attain to the fullest stature of which they are innately capable, and be recognized by others for what they are, regardless of the fortuitous circumstances of birth or position.” Some argue the American Dream is out of reach for most Americans today.
Assets: something an individual owns that has monetary value, including houses, cars, retirement accounts and unsold stocks.
“Blue-collar” workers: employees whose jobs require repetitive operations with their hands, physical skill and energy. Salaries are typically lower than "white-collar" professions. (Source: U.S. Department of Labor)
Class structure: the distribution of income into various socioeconomic levels; class definition can vary from person to person depending on where an individual believes the cutoff for each class should be. Sociologists Stephen Sweet and Peter Meiksins divide the classes as follows: (Source: Stephen Sweet and Peter Meiksins in "Changing Contours of Work: Jobs and Opportunities in the New Economy")
Lowest class: earns a maximum of $20,453 annually
Lower middle class: earns a maximum of $38,550 annually
Upper middle class: earns a maximum of $61,801 annually
Upper class: earns a maximum of $100,000 annually
“Superrich”: top five percent of income earners; earns at a minimum $181,001 annually
Cost of living: prices of goods and services required to maintain an average standard of living; varies from city to city and time to time.
Economic inequality: The trend since 1968 of growing unequal distribution of income and wealth among America’s lowest three classes and its highest class, which includes the top five percent of earners. (Source: U.S. Census Bureau)
Fiat money: currency that can't be redeemed for a commodity. An example is Federal Reserve notes used today. People accept fiat money because they are confident it will be honored when they buy goods and services. The U.S. dollar, which is no longer backed by gold, falls under this category. (Source: Federal Reserve)
Gini index and coefficient: the primary measure by which income inequality is statistically interpreted in a given geographical region. The index ranges from 0 (perfectly equal distribution of income) to 100 (perfectly unequal distribution of income). The Gini index can often be skewed by demographics and industries in a given region and does not include quality of life, but it is a decent baseline to determine an area’s income distribution. The Gini index was 41.1 in 2010. By comparison, Namibia’s was 61.3 in 2010. The Gini coefficient measures the same value, but is expressed as a decimal between 0 and 1.
Gross domestic product: the sum of prices of goods and services produced in a country minus the price of total imported goods and services. (Source: Organisation for Economic Co-operation and Development.)
Economic bubble: a phenomenon caused by surges in asset prices that are significantly higher than an asset’s true value. (Source: NASDAQ)
Income: the money a person or household earns in a given year.
Income inequality or income gap: the phenomenon of a disproportionate share of income being redistributed among America’s lowest three classes and its highest class, including the top five percent; the broad gap between top earners, lowest earners and the shrinking middle class.
Labor union: an organization formed by workers in related fields that work for the common interest of its members. The union may advocate for fairness of pay for its employees, better working conditions, etc.
Poverty level: data from 2013 says for one individual the poverty level is $11,888; one individual under 65 years old is $12,119; over 65 years old is $11,173. For a family of four, the poverty level is $23,850. This is the number often used to calculate how much government assistance people are eligible for, and sometimes as a measure of quality of life. (Source: U.S. Census Bureau.)
Real gross domestic product: the value of the goods and services produced in a country adjusted for changing prices. (Source: U.S. Department of Commerce)
Supplemental Nutrition Assistance Program (formerly known as food stamps): federal nutrition assistance program that helps individuals and families with low incomes afford necessary food each month; eligibility varies depending on family size and income. (Source: USDA)
Wages: money earned at a job on an hourly, weekly or monthly basis
Wealth: an individual’s assets minus his or her debts
Wealth inequality or wealth gap: a phenomenon similar to the income gap that involves a disproportionate share of wealth being redistributed among America’s lowest three classes and its highest class, including the top five percent. The super-rich are experiencing a growth in wealth, while the middle-rich are experiencing a decline in their personal wealth.
“White-collar” workers: employees whose jobs fall into one of two categories: managerial and professional occupations or technical, sales and administrative support occupations. Salaries are generally higher than those of blue-collar workers. (Source: U.S. Bureau of Labor Statistics)
Assets: something an individual owns that has monetary value, including houses, cars, retirement accounts and unsold stocks.
“Blue-collar” workers: employees whose jobs require repetitive operations with their hands, physical skill and energy. Salaries are typically lower than "white-collar" professions. (Source: U.S. Department of Labor)
Class structure: the distribution of income into various socioeconomic levels; class definition can vary from person to person depending on where an individual believes the cutoff for each class should be. Sociologists Stephen Sweet and Peter Meiksins divide the classes as follows: (Source: Stephen Sweet and Peter Meiksins in "Changing Contours of Work: Jobs and Opportunities in the New Economy")
Lowest class: earns a maximum of $20,453 annually
Lower middle class: earns a maximum of $38,550 annually
Upper middle class: earns a maximum of $61,801 annually
Upper class: earns a maximum of $100,000 annually
“Superrich”: top five percent of income earners; earns at a minimum $181,001 annually
Cost of living: prices of goods and services required to maintain an average standard of living; varies from city to city and time to time.
Economic inequality: The trend since 1968 of growing unequal distribution of income and wealth among America’s lowest three classes and its highest class, which includes the top five percent of earners. (Source: U.S. Census Bureau)
Fiat money: currency that can't be redeemed for a commodity. An example is Federal Reserve notes used today. People accept fiat money because they are confident it will be honored when they buy goods and services. The U.S. dollar, which is no longer backed by gold, falls under this category. (Source: Federal Reserve)
Gini index and coefficient: the primary measure by which income inequality is statistically interpreted in a given geographical region. The index ranges from 0 (perfectly equal distribution of income) to 100 (perfectly unequal distribution of income). The Gini index can often be skewed by demographics and industries in a given region and does not include quality of life, but it is a decent baseline to determine an area’s income distribution. The Gini index was 41.1 in 2010. By comparison, Namibia’s was 61.3 in 2010. The Gini coefficient measures the same value, but is expressed as a decimal between 0 and 1.
Gross domestic product: the sum of prices of goods and services produced in a country minus the price of total imported goods and services. (Source: Organisation for Economic Co-operation and Development.)
Economic bubble: a phenomenon caused by surges in asset prices that are significantly higher than an asset’s true value. (Source: NASDAQ)
Income: the money a person or household earns in a given year.
Income inequality or income gap: the phenomenon of a disproportionate share of income being redistributed among America’s lowest three classes and its highest class, including the top five percent; the broad gap between top earners, lowest earners and the shrinking middle class.
Labor union: an organization formed by workers in related fields that work for the common interest of its members. The union may advocate for fairness of pay for its employees, better working conditions, etc.
Poverty level: data from 2013 says for one individual the poverty level is $11,888; one individual under 65 years old is $12,119; over 65 years old is $11,173. For a family of four, the poverty level is $23,850. This is the number often used to calculate how much government assistance people are eligible for, and sometimes as a measure of quality of life. (Source: U.S. Census Bureau.)
Real gross domestic product: the value of the goods and services produced in a country adjusted for changing prices. (Source: U.S. Department of Commerce)
Supplemental Nutrition Assistance Program (formerly known as food stamps): federal nutrition assistance program that helps individuals and families with low incomes afford necessary food each month; eligibility varies depending on family size and income. (Source: USDA)
Wages: money earned at a job on an hourly, weekly or monthly basis
Wealth: an individual’s assets minus his or her debts
Wealth inequality or wealth gap: a phenomenon similar to the income gap that involves a disproportionate share of wealth being redistributed among America’s lowest three classes and its highest class, including the top five percent. The super-rich are experiencing a growth in wealth, while the middle-rich are experiencing a decline in their personal wealth.
“White-collar” workers: employees whose jobs fall into one of two categories: managerial and professional occupations or technical, sales and administrative support occupations. Salaries are generally higher than those of blue-collar workers. (Source: U.S. Bureau of Labor Statistics)