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Are middle class Thais wealthier than middle class Europeans/Americans


johnthompson

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to be in 1 % in the u.s. need 250k a year in thailand if you make over 25k a year you are in the 1% . the BOT has warned that thai pop. is 170% of income to debt the same level that the u.s. was at before the meltdown. there is a lot of credit creation in thailand that will end badly

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A nurse, secretary or bank clerck's salary barely reaches 20k. Some of you guys are way out touch with reality if you consider a middle class household income is around 100k per month.

No, on the contrary, most guys vastly underestimate wages for middle class workers with college degrees. Nurses can make very good money btw in private hospitals.

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So either the OP's GF inherited a lot of stuff or have a very high income (depending on the value of the houses/property).

Not necessarily.

I know a lady with several nice condo's a nice house and several vehicles she rents out plus a few bikes. She has a Japanese friend who sends her money every month a boy friend from Russia who receives money every month and a mutual friend who loans her money from time to time as he knows he will get it back. She knows how to invest and find clients for her rentals. Also will occasionally spend some time with a wealthy person.

She is not middle class. Financially speaking as that is how the OP is judging she is low upper class.

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You're kidding, right? Average per capita income Thailand, less than US$6k. US, $50k. The US doesn't charge import taxes making all major items cheaper by far. Computers, cars, TV's, etc. US grows its own food making Western food far cheaper.

Wealthier? Which middle class Thai owns a home worth US$500k? (15 million baht.)

I just bought a new Honda CRV for 800,000 baht, (US$25,000.) It would be more like 2 million baht in Thailand. It's 4 wheel limited slip drive, sun roof - loaded. A middle class Thai can't afford that if only because of the taxes causing it to cost 2.5x as much.

Someone is dreaming if he thinks 3rd world Thais are anywhere near as wealthy as Westerners.

Thais don't pay taxes? Try buying a car or anything imported.

Comparing values in dollars is like comparing apples and pears.

What counts is the substance - a house that costs 500k in the USA would cost only about 150k-200k in Thailand.

In your dreams.

150,000 to 200,000 baht is at least what it would cost to bring a Thai home up to close to middle class western standards for a mid income house. That does not take into account the infrastructure being equal to mid income homes.

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You're kidding, right? Average per capita income Thailand, less than US$6k. US, $50k. The US doesn't charge import taxes making all major items cheaper by far. Computers, cars, TV's, etc. US grows its own food making Western food far cheaper.

Wealthier? Which middle class Thai owns a home worth US$500k? (15 million baht.)

I just bought a new Honda CRV for 800,000 baht, (US$25,000.) It would be more like 2 million baht in Thailand. It's 4 wheel limited slip drive, sun roof - loaded. A middle class Thai can't afford that if only because of the taxes causing it to cost 2.5x as much.

Someone is dreaming if he thinks 3rd world Thais are anywhere near as wealthy as Westerners.

Thais don't pay taxes? Try buying a car or anything imported.

Comparing values in dollars is like comparing apples and pears.

What counts is the substance - a house that costs 500k in the USA would cost only about 150k-200k in Thailand.

In your dreams.

150,000 to 200,000 baht is at least what it would cost to bring a Thai home up to close to middle class western standards for a mid income house. That does not take into account the infrastructure being equal to mid income homes.

difficult to believe you thought I compare 500k USD with 150k THB ??? I meant 150k USD of course...

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errrmmm.... my logic appears biaised because you biaised almost every statement I made...

I wrote "Thai middle class ... eats out rather than at home"

not

_the middle class eats out rather at home

(you actually write the opposite from what I wrote)

I wrote "salary of approx. 1.10 baht a minute"

not

_the median income is 44 baht per hour

(if you use my calculation, it's quite easy to compute 66 baht per hour)

yes sorry for my mistake, its not 44 baht but 66 baht per hour salary.

Your huge mistake about the purchasing power for a chicken rice VS burger, did confuse me.....

44 to 66, Yes what a huge difference, of course with 66 baht/hour, now for sure you can afford to buy a house, have a domestic. But please let me know how you do.

How lucky they are! laugh.pnglaugh.pnglaugh.png

ps:

about "the thai middle class eating out rather than at home" you did throw it like it was an luxury thing that only middle class thai can afford when in fact (even with your 66 baht/hour ) you can only afford a 40 baht meal....(yes dont forget you have 3 meals in a day, drink also to pay for your rent, ride, cloth,......)

Mate you are completely out wai.gif because you see mostly the thai middle class throught ...your foreign wallet and your imagination.

3 meals a day ? for a thai ? you sure ? ,...........its now 12;30 and the Mrs is on her 3rd already .............10 hrs to go till bed time yet !

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Well...put in this way..

An American public school senior teacher with $4,000US/month live in a budget. A Thai public school a senior teacher with 30.000THB/month = $1000US can save enough to invest or own a side business, and is considered mid class. Thai teacher retirement income is 60% of your last income plus some good cash, and still mid class. The American teacher will get 30% if lucky, and will be in a poverty level.

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It's hard to work out a Thais worth, I live in a small village, we bought our land off an old dear who lives in a shack

When it came down to finalising payments etc, her son turned up in a 4wd Porsche, I asked my wife

Does she have money?

Oh yes she own many Rai , she have big money, her son have hotel in Bangkok

I have been humbled , I thought most of the people in Isaan where living hard

The older generation don't seem to show their wealth

does this not show how irrelevant the discussion is ?

Middle class people everywhere in the world own the same shit, and feel the same pride for being middle class because it is downgraded to what you can show off.

Just because the value of a middle class house in Thailand is not as high in value as that of a middle class house in the USA, this is a neglectible effect caused by the currencies exchange rates.

They all FEEL being Middle Class !! Eat quality food (that's when the exchange rate turns against house values, USA vs Thailand) etc etc

While this lady, clad with a cotton rag, living on a perched stilted house amidst her butterfy garden , having 50 million Baht in the bank, teaches us one precious lesson.

Think

Edited by crazygreg44
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"to be in 1 % in the u.s. need 250k a year in thailand if you make over 25k a year you are in the 1% ."

I really am surprised by how many people on this thread you seem to think that they know economics and Thailand are so far off with their numbers and accuracy. A quick net search you could find what the tax brackets are, you could also find out what percent of the population are paying which amount of taxes.

30-50 k household income would be straight middle class. Most middle class people own one home and typically have to pay a mortgage on it. They typically have 1 car for each adult, they typically can afford to eat out a few times a week, they generally travel within their own country for their long vacations.

The difference between Thailand and many western countries is the cost of education. In many western countries specifically the US, Canada, and Australia (I suspect UK as well as othes )public schools offer a decent standard of education whereas in Thailand one needs to send their kid to an elite high priced private school. The tuition for those is well over 10k USD a year. So most Middle class Thai families are more likely to send their kids to lower priced mid tiered schools that cost around 2045k baht a semester.

Upper middle Class families earn around 60-100k. Upper middle class families will most likely own more than one home. Most likely still have mortgages. 2 nicer cars, usually higher end Toyota or Honda cars. Or some will get the more elite Benz, Audi imports but have a larger car payment. These families might travel abroad regionally every year for their vacations. They send their kids abroad to study for a year or so if they can get in. They fluctuate between higher end schools or good private schools and spend more money on private tutoring.

the top 1% in Thailand still would be the top 1% anywhere else in the world. The difference between Upper Middle Class to Rich 1% is insane.

The real thing to measure is that in a comparable position in the US, I have a much better quality of life here in Thailand. I can save more in the US and build for a better future though. But for straight out day to day grind for quality Thailand wins hands down.

I would be much happier if my daughter stays and lives in Thailand rather than trying to make it work in the US. I will support her decision no matter what, but overall I would never want to be straight middle class in the US. Upper Middle class in the US is slightly better than in Thailand. Rich 1% is the same everywhere. They can go live anywhere in the world and have the same quality of life.

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Let's compare here because I lived middle class way in Thailand for about 1 year and now I would say we are middle class in Canada.

In Thailand salary of 50 000 baht for my wife and I per month, me teaching her in hotel, no taxes paid. I can say we lived well, meaning eat out for lunch and dinner, laundry outside, nothing much to worry for about 25 000 per month in Phuket. No car and small Thai style apartment, but didn't really need more because no kids yet. Could have rented a house for a bit more but didn't see the need. So if we decided to stay permanently in Thailand, I think we would manage pretty well, buying a condo is not expensive, car can get a Toyota or Honda for similar price as Canada.

In Canada (Montreal) salary of 65 000k or so for both of us so again middle income. Net though we are closer to 45 000k. We have a car not an issue and are able to put a good amount aside about $1500 per month, but we eat at home because restaurant is ridiculous pricy, only eat out on occasions. We are still renting an apartment and living with my mom, which is the main reason we can save that much. Price of housing is so ridiculous now, condo nothing much below 200k, house 300k. Buying something like that would wipe out all our hopes of putting money aside for a while. And Montreal is still cheap compared to Toronto or Vancouver.

Once we have kids things will change for sure in terms of budget, but I think we would be in a pretty similar situation financial wise in Thailand or here. The major difference in Canada is the social security behind us which is not available in Thailand. Between the two countries I can say I was going out more in Thailand and doing more activities than in Canada, since much cheaper there.

So you can make your conclusion from that. Oh and OP description of GF is absolutely not middle class, seems to be a family that has lots of cash.

Edited by tool84
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Ever notice how most Thai people, who have very little, smile and seem happy. Ever notice how when visiting the poorest of the poor in Thailand they invite you inside their home and offer you something to drink (even though it may be the last of what they have), offer you something to eat (although its the last of their food) and they do so with a pride that is completely not understood or felt in the west.

Ever notice in the West everybody seems miserable, discontent and unhappy.

Think on that and then tell me who is more successful. Successful in life (the Thai's) Successful in money (the West)....All depends on what your gauge of success is (or wealth)

“Comparison is the death of joy.”


Mark Twain

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Comparing values in dollars is like comparing apples and pears.

What counts is the substance - a house that costs 500k in the USA would cost only about 150k-200k in Thailand.

I just helped my g/f buy a house here on the outskirts of Bangkok. It is OK, a bit small, a tiny yard, and many small issues because of shoddy construction.

I also just bought a house in Las Vegas in an upscale area. It is literally three times as big as the Bangkok home, has three times the land, and is very well made. All the appliances are not top of the line, but definitely in the upper tier. Construction is of much, much higher quality than the Thai home.

The house in Bangkok? 4.5 million baht. Add in a kitchen, air conditioners, roof over the back, hot water heaters, etc., and it goes up to almost 5 million, and that is with economy appliances and an Ikea kitchen.

The house in Las Vegas? 6.3 million baht

We also looked at a house in Bang Khae at 6.9 million. It would have needed the appliances for the kitchen, hot water heaters, and some air conditioners. She didn't get it because she thought the monthly payments exceeded her budget, but the Las Vegas house was still twice the size with twice the yard and much better constructed.

I realize that Bangkok is more expensive than, say Ubon, but neither of these houses were in Bangkok proper, and I can find cheaper houses in the US than the one I just bought. Maybe not in San Fran or New York, but in most of the country.

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It's hard to work out a Thais worth, I live in a small village, we bought our land off an old dear who lives in a shack

When it came down to finalising payments etc, her son turned up in a 4wd Porsche, I asked my wife

Does she have money?

Oh yes she own many Rai , she have big money, her son have hotel in Bangkok

I have been humbled , I thought most of the people in Isaan where living hard

The older generation don't seem to show their wealth

does this not show how irrelevant the discussion is ?

Middle class people everywhere in the world own the same shit, and feel the same pride for being middle class because it is downgraded to what you can show off.

Just because the value of a middle class house in Thailand is not as high in value as that of a middle class house in the USA, this is a neglectible effect caused by the currencies exchange rates.

They all FEEL being Middle Class !! Eat quality food (that's when the exchange rate turns against house values, USA vs Thailand) etc etc

While this lady, clad with a cotton rag, living on a perched stilted house amidst her butterfy garden , having 50 million Baht in the bank, teaches us one precious lesson.

Think

I agree with everything you say ,apart from her money, from all accounts thats probably 10to 20% of her wealth

I love to see the greedy ferangs who boast about their muddle class status

I really dont know from one year to the next , i live my life and will probably die working

suits me just fine

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Do you guys actually know what a middle class is? its not some one who earns $100,000 but $1,000,000's . Some one who earns on the low $100,000 is just professional working class

I think you are right to an extent , i originate from Bootle in liverpool, i have worked alot in London over the years , and there is a vast divide in property prices and standard of living for middle class#

Can you really define middle class in Thailand once you leave bangkok?

I cant

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If average GDP per capita/average household income = middle class income then definitely NO.

These figures may not take into account the differences in cost of living but nevertheless the average earnings of Thai's are much lower then Europeans. Relatively speaking most services like eg. dry cleaning, healthcare, salons and massages are much cheaper here so some things considered luxurious in Europe can be more affordable to Thais but vice versa, cars, perfumes, brand name clothing are more within reach of the average Europeans. Thailand definitely has a lower cost of living so the same earnings goes alot farther thus the possible perception of living a more luxurious lifestyle but the average household income speaks for itself. I think the example given was not of a middle class Thai but more of an upper middle to high income earner by Thai standards.

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Comparing values in dollars is like comparing apples and pears.

What counts is the substance - a house that costs 500k in the USA would cost only about 150k-200k in Thailand.

I just helped my g/f buy a house here on the outskirts of Bangkok. It is OK, a bit small, a tiny yard, and many small issues because of shoddy construction.

I also just bought a house in Las Vegas in an upscale area. It is literally three times as big as the Bangkok home, has three times the land, and is very well made. All the appliances are not top of the line, but definitely in the upper tier. Construction is of much, much higher quality than the Thai home.

The house in Bangkok? 4.5 million baht. Add in a kitchen, air conditioners, roof over the back, hot water heaters, etc., and it goes up to almost 5 million, and that is with economy appliances and an Ikea kitchen.

The house in Las Vegas? 6.3 million baht

We also looked at a house in Bang Khae at 6.9 million. It would have needed the appliances for the kitchen, hot water heaters, and some air conditioners. She didn't get it because she thought the monthly payments exceeded her budget, but the Las Vegas house was still twice the size with twice the yard and much better constructed.

I realize that Bangkok is more expensive than, say Ubon, but neither of these houses were in Bangkok proper, and I can find cheaper houses in the US than the one I just bought. Maybe not in San Fran or New York, but in most of the country.

You're comparing a capital city, in a country with a relatively high population density, against a place built in a country with a far lower population density overall, in a state with an even lower population density because it's essentially built in a desert..

Add in that Thailand has been virtually unaffected by the crash in 2008, whereas Las Vegas was it's epicentre.

i.e. You're comparing Las Vegas prices after a crash, to the equivalent of London after a boom (but in a country where the average wage is something like a fifth of what it is in the US/UK). i.e. Multiply your 5m baht by 5, and you'll get the approximate £0.25m price of a fairly small house in the outskirts of London (or a small flat closer in - but not in the middle).

I bought a house in London in 1999, and our house in Bangkok in 2001. Both cost roughly the same, and unlike your Las Vegas comparison, the house in London is SIGNIFICANTLY smaller. Even with the change in value of the baht though, and the crash in the west, the house in London was a better financial investment. If you want a long-term investment in Thailand, I honestly think you'd be better off buying land than a house, or if you want an income stream, a condo/flat. You should only buy a house here as a place to live, not as an investment.

As for the buildings... - In the US everything will be to code, but it's probably timber-frame? Termites mean that they don't build with timber-frame construction here. Roof trusses are steel, etc. So the basic structure of the Thai building is probably stronger (and definitely less liable to burn down in a fire).

The difference is more in the quality of the job done. - i.e. in the US...

  • Windows will be better built (double or triple-glazed - built in a factory to a specification - that they will meet).
  • The electrical supply will undoubtedly be earthed properly (not guaranteed in Thailand).
  • Insulation - will have actually been designed into the build, where in Thailand, windows are invariably single glazed, and I have yet to see anything beyond the silver foil stuff that you see in the roof as insulation in a Thai house.
  • Waste pipes may well be plastic, but supply pipes will normally be copper.
  • Where plastic pipes have been used, they will be installed properly - i.e. If they go through concrete, there should be a sleeve to allow for expansion/contraction. I have yet to see that in a house built in Thailand, where they simply pour the concrete with the pipes in places, which means a few years down the line - you get leaks from your pipes.

Some things can be done better here. Marble flooring is SO much cheaper to get done here. The same is true for granite worktops in kitchens. Because the labour cost is a fraction of what it is in the west, and stone-cutting is a well understood craft.

In the same way, you can have bespoke woodwork done here comparatively cheaply.

The problem is that even where where high-standard fixtures have been used, the installation may not be 100%. - i.e. There is always something in the house where you go - "why didn't they use a spirit level?"

The real difference is in the developed world, you're required to use a QUALIFIED plumber and a QUALIFIED electrician. In Thailand, I sincerely hope that's a requirement in large condo or hotel builds and the like (at least as a supervisor), but I honestly don't think most plumbers and electricians here in the home sector have received any proper training.

Middle class quality of life here is better only BECAUSE it's so cheap to hire staff. i.e. You don't need to buy a dishwasher when you have a maid. And you have a maid because you have to clean so much more often (ants!!!), and hiring a maid is so much less hassle than doing it yourself.

Edited by bkk_mike
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One more thing i would like to add in. I lived in the US for a couple of years. Stayed in a college town and well i rented an apartment and i remember my bathroom having no drainage system at all. Yup that's right when you spill water on the floor you better hope it dries up and cleaning it was tough.

Now when i stayed with a girl at her apartment in thailand it was called life condo i think at soi 10 her bathroom didn't have the drain too. So i suppose cleaning it was a bitch.

At least most hotels that i stayed in thailand have drains i cannot remember if that is the case for american homes but one thing i hate about american homes is that they don't have gates. You can just walk up to a house and knock on the front door. At my home in singapore we have a gate and a garden all fenced up and the fence is with a brick wall with a nice design not some ugly picket fence mind you while i noticed most american homes don't have that cos of some stupid law.

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She lives with her mom, dad and brother. Although she has her own house and that plot of land. The three cars are owned by the family. Two housekeepers are paid by the family. Does not explain how she is still able to afford parking fees, gasoline, school fees and activities for her kid, expensive dinners, consumables, holiday to HK and other stuff.

I know she is middle class. But lets not focus on my girlfriend. Lets focus on all those new modern moobarns and condo's with 3-4 cars in front and all the thai people I see at shopping malls with the latest cars, smartphones. Surely all of those people are middle class right?

We look at them with western eyes and what you see could not be the real side of the reality. I stay here for a long time now and something that I have understand is that Thai people like to "show". In fact, you can see a lot of people at shopping mall with new cars, lot of stuffs (last smartphones models, etc) but without any real AS/SET. Why ? because they have lot of debits and can cumulate like 100% of income in monthly payment.

If I take example of my ex wife, when I met her, she had education from university, was driving a brand new Honda Accord, wearing nice clothes, Louis Vuiton original bag, smartphone, jewelry, living in house without rental fees, etc, typical "shiny" middle class girl !

But behind the apparence, she was earning 40,000B and paid monthly debit around 35,000B !!!

And the house she was living was owned by her mom...

So I guess it was hard to live with 5,000B to put Gasoline in car, etc so the credit card was always push to the credit limit and she was really happy to meet me to support her lifestyle.

By the way, this example is very common in Thailand, as most people in Bangkok living upper to their own level and never really save money even for retirement time, it is the Thai way...

Go look around basic Thai appartments in Bangkok, monthly rental fee about 3000B to 5000B but many cars on parking with value over 1 Million Baht.

Thai people prefer to "invest" in a car to "show" than in a better place to live, and maybe own by themselve.

In conclusion, until you learn exactly what is your GF real income and expenses, be careful about what you see, it can be just an apparence of a different reality.

And one more thing, 500USD a month is not very expensive international school fee, the expensive one will be rather 1000USD a month...

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A nurse, secretary or bank clerck's salary barely reaches 20k. Some of you guys are way out touch with reality if you consider a middle class household income is around 100k per month.

that's not true. we know both a nurse and a secretary; very close friends. nurse is making 32K per month - sometimes more if she does home healthcare on weekends, secretary (years of experience inc. executive secretary at samsung corporate office), making about 45K per month.

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A nurse, secretary or bank clerck's salary barely reaches 20k. Some of you guys are way out touch with reality if you consider a middle class household income is around 100k per month.

No, on the contrary, most guys vastly underestimate wages for middle class workers with college degrees. Nurses can make very good money btw in private hospitals.

like i mentioned in another post, our nurse friend, mid 30's, is well educated CMU and special surgical procedures (2 years in the USA university) , makes on average 32K per month, up to 40K per month when she works weekends doing home healthcare. owns her own townhouse and drives a fairly new - about 5 year old Mercedes.

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If one refers to the real middle class in Thailand - a family of 4 one earner making net around, or maximum, baht 100,000 p.m., they are worse off than in the US, Australia or Europe. They most certainly unable to send their 2 children to private schools charging at least Baht 20,000 p.m., nor shopping in the expensive malls. You are correct in saying that domestic labour is much cheaper here than in western countries, and so is housing. On the average a middle class family of 4 would enjoy in the west a similar standard of living as here, without the benefits of domestic help. The other factor is that public schooling in most western countries is nearly free and of a much higher standard than in Thailand. For 2 school attending children it makes all the difference in the world, if you don't have to pay exorbitant school fees like in private schools in Thailand!

Thais making 100,000 baht per month are at most 3% of the work force, hardly "middle class".

The median Thai makes less then 20,000 baht per month.

Around 40% are employed in agriculture = most make close to the minimum (if not less).

Around 20% are employed in industry = most make low salaries, usually below 20,000 per month

Around 15% are employed in the tourism sector = make low salaries, usually 10-15,000 per month

many others are employed in retail, restaurants, construction etc, and make 8-15,000 per month.

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If average GDP per capita/average household income = middle class income then definitely NO.

These figures may not take into account the differences in cost of living but nevertheless the average earnings of Thai's are much lower then Europeans. Relatively speaking most services like eg. dry cleaning, healthcare, salons and massages are much cheaper here so some things considered luxurious in Europe can be more affordable to Thais but vice versa, cars, perfumes, brand name clothing are more within reach of the average Europeans. Thailand definitely has a lower cost of living so the same earnings goes alot farther thus the possible perception of living a more luxurious lifestyle but the average household income speaks for itself. I think the example given was not of a middle class Thai but more of an upper middle to high income earner by Thai standards.

You can look at the GDP PPP per capita - there is a list of countries in Wikipedia. This takes the cost of living into account (thus the PPP....)

Anyway: Thailand $10K per year, USA $49K per year.

But GDP per capita alone does not tell the full story, as income distribution and taxes are different in each country.

Income in European countries (with the exception of the UK) is usually much more equally distributed then in the US or in Thailand, so the median income will be closer to the average in Europe then in the latter two countries.

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If one refers to the real middle class in Thailand - a family of 4 one earner making net around, or maximum, baht 100,000 p.m., they are worse off than in the US, Australia or Europe. They most certainly unable to send their 2 children to private schools charging at least Baht 20,000 p.m., nor shopping in the expensive malls. You are correct in saying that domestic labour is much cheaper here than in western countries, and so is housing. On the average a middle class family of 4 would enjoy in the west a similar standard of living as here, without the benefits of domestic help. The other factor is that public schooling in most western countries is nearly free and of a much higher standard than in Thailand. For 2 school attending children it makes all the difference in the world, if you don't have to pay exorbitant school fees like in private schools in Thailand!

Thais making 100,000 baht per month are at most 3% of the work force, hardly "middle class".

The median Thai makes less then 20,000 baht per month.

Around 40% are employed in agriculture = most make close to the minimum (if not less).

Around 20% are employed in industry = most make low salaries, usually below 20,000 per month

Around 15% are employed in the tourism sector = make low salaries, usually 10-15,000 per month

many others are employed in retail, restaurants, construction etc, and make 8-15,000 per month.

I believe the median income has increased slightly to about 23,000 baht/month.

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Only 2.65 % of Thai population pay taxes. Thats why middle class Thais have a lot of money. In europe they take all our money in taxes and fees, so we end with a low middle class.

About 17% I believe.

No,it is about 3%.

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Well...put in this way..

An American public school senior teacher with $4,000US/month live in a budget. A Thai public school a senior teacher with 30.000THB/month = $1000US can save enough to invest or own a side business, and is considered mid class. Thai teacher retirement income is 60% of your last income plus some good cash, and still mid class. The American teacher will get 30% if lucky, and will be in a poverty level.

Don't forget monthly donations from pupils!

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