Analysis Of The American Middle Class

explanatory Essay
1703 words
1703 words

The article that has been chosen for this assignment is called “Middle Class Series: The American Middle Class, Income Inequality and The Strength of Our Economy” by (Boushey & Hersh, 2012). The basic thing about this article is that it seeks to reaffirm to the society that the middle class is largely responsible for economic growth and development. By grouping the society into classes the article looks at the contribution of each class to the growth of the economy using some of the major economic indicators such as the real GDP. However, the article also gives credit to the members of both the lower and upper classes especially the upper class for running the economy by heavily investing in the top and leading industries in the country. …show more content…

It means that they are in position to invest in the middle class and help boost the economy. It does not mean that the activities by the middle are the only boosters of the economy. There are other factors such as price of capital, luck, sport and many other activities that contribute to the growth of the economy. The definition of the middle class in the article is not limited to the families belonging to the middle income bracket but those that can make ends meet can invest and build a next generation. This paper investigates how the principles of microeconomics are applied in the …show more content…

Now inflation rate is an estimation of the pace at which prices of commodities and services in the economy of a country have changed. When this figure is very high then it is an indication that most people in the country are not able to afford certain commodities due to increased prices. What normally contributes to this is the fact that income remains constant yet the prices of commodities are increased. Therefore after taking care of a few of the basic needs people find themselves unable to access other goods or services. In the article it is stated that recession is one of the factors that encourage inflation. Recession is simply a period of reduced or minimal economic activities in a country. Recession is a major concern especially to the middle class (Boushey & Hersh,

In this essay, the author

  • Explains that the cpi is a highly regarded economic indicator that measures the strength of the economy.
  • Explains that ppi and cpi are the earliest indices that are used to gauge inflation since they are calculated after a very short time.
  • Explains that unemployment rate determines the number of unemployed persons in a given size of the labor force.
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