University of Michigan student claims her family making $250,000 a year makes them middle class.

Defining what is middle-class is a fickle definition. The U.S. Census Bureau defines middle class in the United States as a median household income of $51,017. That said, the middle class varies. What's middle class in Massachusetts or New York is different than what qualifies as middle class in Mississippi or Alabama. But median is median. Massachusetts and Mississippi meet each other at some point, and it's regularly well under $100,000. Well, well, well under $100,000 for a family.

But that doesn't stop University of Michigan student Jesse Klein from claiming in the school newspaper that she is really middle class--despite her family earning over $250,000 a year and living in a $2 million home in Palo Alto.

"My family's household income is $250,000 a year, but I promise you I am middle class," says Klein in her article. "I live in a $2 million dollar house, but I promise you I am still middle class. It has one story, doesn't have a pool or its own movie theater. It is a modest three-bedroom, two-bath."

It doesn't have a movie theater? That's slumming it. And she did promise us...

Klein's story has raised the angst of people around the country who debate the merits of what makes someone middle class. (Psst: it's not $2 million homes). Palo Alto is an affluent neighborhood, but even there the median household income isn't a quarter million.

Indeed, the last demographic statistics for median household income for Palo Alto was $119,046--which is still lower than Ms. Klein's idea of middle class--by more than half of her estimate.

The problem for Klein is a matter of perspective, and to a degree, ridiculousness. While the median income of her hometown might be $119,046, the University of Michigan reports that 63% of all incoming freshman claim a family income of over $100,000. In essence, Klein has no idea how the majority of the world--the majority of America--lives, if only because everyone she grew up and attends college with is equally affluent.

And apparently, the University of Michigan has no idea as well.

There's a bubble, and sometimes it's hard to see outside it.