The world has become increasingly competitive, with the infusion of globalization and economic expansion. The socio-economic group that is behind this expansion is the so-called bourgeoisie, or the middle class. Economists argue that the middle class is disappearing due to several factors. But, data shows that globally the middle class is growing at an alarming rate. Globally consumption is at an all time high which includes fast cars, retail shopping, sporting events, and weekend getaways. Americans alone spend 10 trillion dollars annually. The world depends on America’s love affair with consumption to continue to grow. The middle class is believed to be the backbone of both the market economy and democracy in most advanced societies. The middle class includes in its ranks, high academic achievers, holders of professional credentials, doctors (PhD and MD) lawyers, engineers, and Politian’s. The American Middle class places high importance in the investment of human capital i.e. education and personal development. The challenge is that the rich are getting richer, the poor is seeing their circumstances improve, but the middle class is losing ground. Based on the trillions of dollars leveraged by consumers in America, middle incomers are clearly spending more than they earn. The question then becomes whether the middle class is expanding or contracting. We will look at the evidence for and against this theory. We will also look at the drivers and effects behind socio-economic status around the world, and how fiscal policy shapes the future of economic prosperity for the nations and the world. HISTORY The first evidence of the word “middle class” was sited in the pamphlet Scheme to prevent running Irish wool France. The ... ... middle of paper ... ...y. The bottom line is Americans are living longer fuller lives with greater conveniences and access to more information, entertainment and educational opportunities than ever before, and in order to maintain this standard of living Americans must make some changes that encompass a global economic vision, fiscal responsibility, and a committed investment in human capital. BIBLIOGRAPHY Doyle McManus, http://www.latimes.com/opinion/commentary,Web,October,2013 ERIC LIU & NICK HANAUER http://www.theatlantic.com/politics/archive, Web, /2013/07 Frank Holmes http://www.businessinsider.com/middle-class-middleweight, Web 2011-3 Mark Gongloff http://www.huffingtonpost.com, Web /2013/09/17 http://en.wikipedia.org/wiki/Middle_class,Web,2013 Claire Suddath http://content.time.com/time/nation/article,a brief history of the middle class, Web, 2009
America is divided into two main groups, rich or poor. There is some grey area among these groups which is referred to as the middle class. The problem with the middle class is that most people think they belong in the middle class because they do not want to associate themselves with neither rich nor poor; there are stigmas attached to each side of the spectrum.
I consider my family and I to be in the middle class category and from being in the middle class, and the facts that are provided, the middle class is slowly declining as the time goes on. I believe that a lot of people go beyond the middle class to the upper middle class or people go below the middle class to the poor category. I’ve found a graph from Forbes that compares the rates of all classes from 1979 to 2014. From observing the graph my initial hypothesis was right. The middle class has declined by 6.8% between the years 1979-2014.
The working class stays working and the middle class stays being middle. Author Nick Tingle, wrote “The vexation of class”, he argues that the working class and the middle class are separated educationally based on culture and the commonplace. Tingle uses his own personal experiences and Ethos, to effectively prove his point about the difference in class based on culture ; although, Tingle also falls short by adding unnecessary information throughout the article that weakens his belief entirely.
With each class comes a certain level in financial standing, the lower class having the lowest income and the upper class having the highest income. According to Mantsios’ “Class in America” the wealthiest one percent of the American population hold thirty-four percent of the total national wealth and while this is going on nearly thirty-seven million Americans across the nation live in unrelenting poverty (Mantsios 284-6). There is a clear difference in the way that these two groups of people live, one is extreme poverty and the other extremely
The concept of the "working poor" has gained prominence in the post-welfare reform era. As welfare rolls shrunk, the focus shifted from the dependent poor to the working poor. It was obvious that without substantial outside support, even families with full-time low-wage workers were still earning less than the official poverty line. And while American society purports that anyone can prosper if they work hard enough, it became apparent that with inadequate opportunity or bad luck, a growing number of families could not attain the American dream, or even break the cycle of poverty. The new challenge for American social policy is to help the working poor lift themselves out of poverty. That's why progressives who supported ending welfare as we know it have set a new goal -- the government should "make work pay" so that no one who works full time is poor.
The highest earning fifth of U.S. families earned 59.1% of all income, while the richest earned 88.9% of all wealth. A big gap between the rich and poor is often associated with low social mobility, which contradicts the American ideal of equal opportunity. Levels of income inequality are higher than they have been in almost a century, the top one percent has a share of the national income of over 20 percent (Wilhelm). There are a variety of factors that influence income inequality, a few of which will be discussed in this paper. Rising income inequality is caused by differences in life expectancy, rapidly increases in the incomes of the top 5 percent, social trends, and shifts in the global economy.
In closing, I will discuss the importance of these four major foreign policy objectives as they apply to the middle class. Since the closing of the 19th century the middle class has emerged into the largest class in our society. With the four previously discussed policies, or ideals in place, the middle class would improve and become stronger, which it has. Otherwise, without protection of U.S. foreign policy, our nations economy and power would deflate, sinking the middle class to becoming a poor working class. Fortunately, our nations leaders sought to protect and uphold foreign policy through out the decades, and as a result turned our society into one built on the foundations of the middle class. Emphasizing diligence in work and in savings, daily life lived on a strong moral basis, and education as the key to economic success, which has emerged into the cornerstone of the U.S. and its people through out the twentieth century.
The United States, a place where anyone can “pick themselves up by the bootstraps” and realize the American dream of a comfortable lifestyle. Well, for over 30 million Americans this is no longer possible. Though we live in the richest and most powerful country in the world there are many who are living under or at the precipice of the poverty level, “While the United States has enjoyed unprecedented affluence, low-wage employees have been testing the American doctrine that hard work cures poverty” (The Working Poor, 4). This translates to families of four making around 18,850$ a year. And as soon as they find work or move just slightly above that 18,850$ a year (which is still a meager and deprived way to live) they are cut off from welfare checks and other “benefits”, “they [working poor] lose other supports designed to help them such as food stamps and health insurance, leaving them no better off-and sometimes worse off-than when they were not working” (The Working Poor, 40). The working poor find themselves in a trap of dead-end, minimum wage jobs, and complicated, under funded government programs.
In the United States there are four social classes : the upper class, the middle class, the working class, and the lower class. Of these four classes the most inequality exists between the upper class and the lower class. This inequality can be seen in the incomes that the two classes earn. During the period 1979 through the present , the growth in income has disproportionately grown.The bottom sixty percent of the US population actually saw their real income decrease in 1990 dollars. The next 20% saw medium gains. The top twenty percent saw their income increase 18%. The wealthiest one percent saw their incomes rise drastically over 80%. As reported in the 1997 Center on Budget's analysis , the wealthiest one percent of Americans ( 2.6 million people) received as much after-tax income in 1994 as the bottom 35 percent of the population combined (88 million people). But in 1977 the bottom 35 percent had about twice as much after tax income as the top one percent. These statistics further show the disproportional income growth among the social classes. The gr...
I never thought I would find so much information on the incredibly shrinking middle class until I searched around for it on the Internet. In the United States, the middle class is put into a strange socioeconomic category. Although it is not easily defined everyone believes they belong in that class. I guess what you can do is look at it in two different ways. First ask the question “What percent of all income is distributed to the middle class at any time,” then think about “How many families obtain enough income to achieve a middle class standard of living at any point of time.” Basically these are two ways of approaching the middle class called either the percentile approach or the class share approach.
Let's take it back to the past in regards to wealth distribution in this country. The fact is that the economy boomed from the end of WWII into the 1970's. “Incomes grew rapidly and at roughly the same rate up and down the income ladder, roughly doubling in inflation-adjusted terms between the late 1940s and early 1970s” (CBPP). Through the 70's economic growth slowed, and the wealth gap widened. Middle-class families were now considered lower class. People relied on the government to help them out with welfare programs. The middle-class class was weakened and the gap grew and grew. There were periods of positive fluctuation, however the middle-class simply never regained it's status that was held in more prosperous times in the past.
Reich, Robert. "Why the Rich Are Getting Richer and the Poor Poorer." Mountain View College Reader. Neuleib, Janice. Cain S., Kathleen. Ruffus, Stephen. Boston: 501 Boylston Street, Suite 900. 2013 Print.
“There is a wide belief that Americans are less class conscious than Europeans” (Vanneman). Because the United States consumes more than any other country, the global economy relies on our consumption. “The middle class is an ambiguous social classification, broadly reflecting the ability to lead a comfortable life” (Kharas). During the industrial revolution, there were aristocrat traditions in royalty, class, and rank in Europe. In America, the industrial revolution was coming of a wealthy nation. The United States is has a two party system, Republicans and Democrats. The Democrats wanted more people in the middle class, mainly blacks and immigrants. The Republicans wanted to protect the people who were already in the middle class, whites, and successful working people. The middle class in America is sometimes threatened by its own success. “The definition of the middle class is the people of generic roots like Warren Buffett, Bill Gates, Robert Johnson, and Sam Walton can become billionaires” (Hockenberry). Not everyone who is in the middle class can become a billionaire and using their stories as an example is the death of the American
“Why the Rich are getting Richer and the Poor, Poorer” written by Robert Reich, describes as the title says, why the rich are getting richer and the poor, poorer. In Reich’s essay he delves into numerous reasons and gives examples of each. It makes one wonder if the world will continue on the path of complete economic separation between the rich and the poor.
Rosenbaum, E. (2013, August 8). A new species? The elusive nature of the global middle class. Retrieved from http://www.cnbc.com/id/100949800