Social class is not just about your current salary, although 200k soon after graduation isn't exactly 'average'...
Some might even say that walking up to the CEO like that indicates upper class self-assurance...
In the office setting the CEO would never been seen anywhere near the same floor that such junior people are working or eating, never having the opportunity to introduce themselves. One bank famously had a special CEO elevator so the guy could seamlessly get from the garage to his high-rise executive suite without bumping into a single soul.
I recently found myself out to dinner a table over from a C-suite exec at my company. I did not introduce myself because I'm a socially damaged introvert.
It's a pretty easy bet that the kid was a major extrovert on the other hand, more than some assumption they must already be upper class.
You'd be surprised about the class mobility on Wall St vs other industries. When I graduated, Google famously did not even recruit from anything other than a small handful of schools and screened out a pretty high GPA minimum like 3.75 or so. Meanwhile every bank came to my college and I had like 5 offers. A good number of my coworkers spent some time at community college, had parents without college degrees, are first gen immigrants, etc.
Outside of glad-handing networking roles that lean on peoples connections like in IB, "already rich" is the exception rather than the rule. Bear was famous for saying they didn't hire MBAs, but instead PSDs — poor, smart and had a deep desire to be rich
The meritocrats are the ones that work the jobs where they actually have to make money and profits. Nepos are shunted to roles where that isn’t as direct.
Upwards mobility my ass.
or to use an older one: petit bourgeoisie
Class is defined by one's relationship to the means of production (e.g. whether you work in a factory, or own the factory where people work)
In the modern economy, capital owners are reliant on a class of non-fungible white collar workers that bring their own human capital. The two groups have myriad common interests. Those interests are in many cases in opposition to those of ordinary workers who lack human capital and are fungible and easily replaced.
They’re proles by the definition of how they earn their labor. If the pool of labor expands beyond the available roles, those high salaries would crash down.
Were we to push that to the extreme, the only upper-class at Goldman Sachs would be retirees, either as direct shareholders or as beneficiaries of some pension fund. Even if they were lower middle-class Americans living in an old aging house they can’t afford to fix.
That would be the Value Extraction definition of Class.
Others would argue that class is more diffuse, and that one’s class depends more on their family's history, where they went to school, and who they know, than on how much they have. Which is a valid point.
That would be a Social Capital definition of Class.
I doubt however that anyone would consider a street-sweeping former Emperor (eg Piyin), or some penniless heir to some old industry dynasty as still belonging to any sort of upper-class.
Meaning the actual definition actually is some fluid mix of the two. That and probably some other definitions I’m not even aware of.
> In the modern economy, capital owners are reliant on a class of non-fungible white collar workers that bring their own human capital.
It’s nothing modern. Capital owners always have, since the first scribe, and probably before that (see Japan’s former hordes of perpetually desk-bound samurai).
Still, let’s entertain the argument. I’ll use, and I’m truly sorry for that, a tired analogy.
In the modern world, many people are reliant on many different types of usually non-fungible pets and somewhat fungible, depending on who you ask, animals, for many different purposes. Some of which bring their own highly sought-after hard-earned skills.
Let’s limit ourselves to the oh so tired dog analogy.
A person and their dog have myriad common interests. Those interests are, in many cases, in opposition to those of many other people and animals. Even more so when said dog is considered a family member, serves as a guard dog, as a shepherd dog, or is specialised in drugs detection.
Does that make them equal? Does that change anything to the fact that one is extracting value from the other, and often only pays them back in dog food, usually made from our food industry’s literal scraps and refuse?
So yes, I agree with you: there’s no simple and definitely no simplistic definition of class.
I am still convinced however that, in the specific and limited context of the comment I was replying to, the one I used was good enough.
By your value-extraction definition, Sundar Pichai isn’t upper class. He doesn’t make money from his ownership of the capital—he owns a negligible share of Alphabet. Instead, he helps the shareholders extract more value from Alphabet and is compensated for that work. A definition that excludes CEOs from the upper class isn’t a very workable one.
I think a more useful definition recognizes that, in between shareholders and the workers is a class of people who help the shareholders extract more value from the enterprise, and therefore has interests closely aligned with those of the shareholders. For example in a company like Uber, that’s what the programmers are doing. They’re not creating value, they’re building systems to extract more value from the drivers.
Another way to look at it is that there’s a large class of people whose jobs wouldn’t be nearly as well compensated without monopolistic capitalism. $500,000/year Facebook engineers only exist because Facebook as an enterprise throws off enormous amounts of cash. If you look at more social-democratic societies, the biggest difference isn’t at the very top. Sweden and Norway have more billionaires per capita than the United States. Instead, the biggest difference is in the professional class. Swedish engineers (and bankers and lawyers and other professionals) make a fraction of what their American counterparts make. And that’s because Sweden has far fewer of these insanely high margin businesses.
Precisely the analogy’s point. Glad I didn’t have to spell it out.
> A definition that excludes CEOs from the upper class isn’t a very workable one.
Absolutely. Hence the "Were we to push that to the extreme", followed by a ridiculous application of the definition.
> Another way to look at it is that there’s a large class of people whose jobs wouldn’t be nearly as well compensated without monopolistic capitalism.
And thus we can differentiate those of these people who are part of the upper class from those who aren’t by wether they get an actual share of the value they produce, or merely scraps. Wether they are compensated as equals, or as useful tools.
Interesting bit about Sweden and Norway. I didn’t know that.
Yes, but focusing on those factors gives you an incomplete understanding of the dog’s place on the farm. At the end of the, day the dog is helping the farmer extract value from the sheep. Indeed, the dog’s very specialized skills wouldn’t have much value outside the context of the farming enterprise. That means the dog’s interests are much more aligned with the farmer’s than the sheep.
Which, to me, reflects a huge gap in power and freedom.
One decides what the other does. One can decide how much the other will earn. One can decide wether or not the other will still have a job tomorrow. The other needs a job if they want to have a roof over their head and food on the table in six months.
Which is why I still don’t find your definition satisfactory. Sure alignment of interests matters, but to me it’s not enough.
It’s been an insightful discussion, and I’ve truly enjoyed it, but I’m afraid we won’t be able to reach a conclusion we can both agree on.
It’s that weird in-between, where one still needs to earn a living and make even more money for someone else.
A 25M / year CEO is far past "earning a living" and really only works because they want to.