The Great American Divide

In the October 10, 2011 issue of Time, there is a feature called “The Great American Divide” that reports on money: who has it, who is spending it on what, and how as a country Americans feel about it. This feature also reports something troubling, how the gap between rich and poor is once again growing wide (Sachs, 2011). Shifts in spending, shifts in money control, and a struggle with how to deal with the great money crisis America and Europe face are all discussed in this feature. This feature pulls together how GDP, unemployment rates, consumer consumption, and pricing affect this era of volatility and the shrinking middle class (Foroohar, 2011). This feature also reflects on inflation, economic growth, political stability in emerging markets and taxes play in as well. The answer to solving this imbalance of wealth and the struggling economy may be found by government action, but will it be too late?

Era of Volatility

This feature begins with a poem by W. B. Yeats entitled, “The Second Coming”. It is a dark poem that aptly applies to the shrinking middle-class, the failing markets, and the increasing arguing of presidential candidates (Foroohar, 2011). Globally, there is a “double-dip” recession occurring (Foroohar, p. 28). Recession is defined as “a period of declining real incomes and rising unemployment” (Mankiw, 2012, p. 423). Certainly this tem applies in the American economy, where jobs are being shipped overseas at an alarming rate. Americans could take comfort in the fact that the economic troubles presently being experienced are also being experienced by other countries worldwide; if that were comforting.

It has been estimated and confirmed that the U.S. GDP will grow by less than 2% this y...

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...gs or college funds to pay bills (Time). Even more distressing is that 13% say they have gone hungry because cannot afford food, 7% have lost their homes (Time).

There has been almost a 10% increase in the number of people who do not believe that their children will be able to live the American Dream (Time). America is experiencing a huge disparity in class right now.

Works Cited

Foroohar, R. (2011). A New Era of Volatility. Time. 178(14). P. 28.

Gandel, S. (2011). Shopping: The Rich and the Rest. Time. 178(14). P. 39.

Gandel, S. (2011). What We Spend in a Month. Time. 178(14). Ps. 34-35.

Mankiw, N. G. (2012). Principles of macroeconomics (6th ed.). Mason, OH: Cengage.

Sachs, J. D. (2011). Why America Must Revive its Middle Class. Time. 178(14). Ps. 30-32.

Time. (2011). How We Spent… Time. 178(14). P. 32.

Time. (2011). Money Poll. Time. 178(14). P. 29.