Economics of the Middle Class

Today's book is Jim Rodger's A Bull In China. It's a overview of the business climate in China. It's an interesting read. I'm still reading it, but one thing already has my attention.

There's a discussion of the middle class in China, and an attempt to define it in terms of a dollar value. It occurred to me that it is not only meaningless, but ridiculous to try to measure someone's economic standing in terms of the exchange rate of their income to a foreign currency that they probably never use. (The number given is $1200/year). Especially since things like medical care, education and vacation time are not necessarily indicated by income, but more by government policy in some countries.

A more useful definition might be:

1. Poor: Possible malnutrition, limited medical care, no security. Limited access to education
2. Middle class: Adequate nutrition, access to some, but not all medical care. Ability to deal with some economic setbacks without loss of standing. Access to education. Working is required.
3. Rich: Adequate nutrition. Access to all medical care, education. Economically secure. Working is not required.

How would you define rich? Middle class?

I also recently read The Middle-class Millionaire, which describes people having assets between $1,000,000 and $10,000,000 as "Middle Class". Not a definition I would use.

Would you call the middle class?

If someone is living in country XYZ, and they have food and medical care, their children get a good education, does it matter in the slightest what their income translated into in US dollars?