Middle Class, Income Inequality And The Strength Of Our Economy Essay

Middle Class, Income Inequality And The Strength Of Our Economy Essay

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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. The government has always registered huge gains from the profit taxes and taxes from the industrial goods and even the licensing of industries especially those that are springing.
The article also divides the society into classes and reports that the top class for the rich in the society is made up of people who in most cases hold the leadership positions. 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 article.
Economic principles related to the article
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...ncern especially to the middle class (Boushey & Hersh, 2012).
Appropriate evaluation, decisions and forecasts from the information
There are a lot that can be learnt from the information in the above discussion. First of all the article teaches that majority belongs to the middle class in most economies. This means that if it is the wish that such an economy boosts its strength then it ought to invest in the middle class. Also boosting the middle class is way of creating a strong demand for goods and services. This will attract investors given that demand is one of the major concerns for investors that give them surety that they will make profit. The major forecast that can be made from this information is that if the government provides the right facilities and concentrates its investments on the middle class then the economy is likely to grow very significantly.

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