Easily Observed: 5 Characteristics of Lower-Class Citizens
President Prabowo Subianto highlighted Indonesia’s achievements in reducing extreme poverty during his speech at the World Economic Forum (WEF) in Davos, Switzerland. The government continues to run a number of programmes to reduce poverty and encourage improvements in public welfare.
The economic condition of society is not solely reflected in the amount of income received each month. The level of welfare can also be seen from various aspects of life, such as the quality of housing, the ability to access education, and the conditions of daily life.
Citing GoBankingRates, here are five characteristics often associated with the lower class and lower-middle class.
- Difficulty obtaining adequate housing
Housing is one of the needs with the largest share of household expenditure. Difficulty in obtaining a home that is safe, comfortable, and in a decent environment can be an indicator of economic limitations. This condition usually shows that most income must be allocated to meet basic needs, leaving very limited room for other spending.
- Working for low wages with minimal benefits
The type of job is also often used to assess a person’s economic position. Jobs such as restaurant servers, lorry drivers, retail employees, manufacturing workers, and cleaning staff generally have lower income levels than managerial or specialist positions. “You are considered to be in the middle class if you work in a managerial position or a specialist job,” said Nathan Brunner, CEO of Salarship. However, employment cannot be the only benchmark. Teachers, nurses, accountants, and information technology workers, for example, can be in different economic groups depending on seniority, expertise, certification, work location, and income level.
- Having no savings or investments
Savings and investments act as a cushion when someone faces an emergency and as a means of building long-term wealth. However, the ability to set aside money for these purposes is more difficult when income is only enough to cover daily needs. The absence of an emergency fund, long-term savings, or retirement preparation can be a sign that a person’s financial condition remains vulnerable.
- Difficulty enjoying non-essential spending
The ability to go on holiday, eat out, buy new items, or enjoy entertainment occasionally can also reflect a person’s level of financial security. If every expenditure beyond basic needs must be strictly considered due to budget constraints, this condition can be an indicator of economic pressure. Conversely, someone who has room in their budget to enjoy non-essential spending generally has greater financial flexibility. Nevertheless, lifestyle still needs to be viewed alongside overall financial conditions. A person with limited income can still enjoy entertainment or holidays through strict budget management.
- Limited access to higher education
Education is also one of the indicators often associated with economic position. Higher education generally opens greater access to jobs with better income and career progression. Conversely, the high cost of tuition and limited access to education can be barriers for low-income communities to improve their economic mobility.
Even so, these five indicators are not absolute measures for determining whether someone belongs to the lower class or the middle class. Economic conditions are also influenced by income, number of dependants, cost of living, assets, debt, place of residence, and access to public services.