An Introduction To The American Development Of The Middle Class?

Reaganomics are the economic policies that were set and promoted in 1980s by the U.S. President Ronald Reagan. These policies are mainly connected to trickle-down economics. There are four pillars that are associated with the economic policy of Reagan and they include: reduce government economic regulation, reduce growth of how much the government spends, reduce the marginal tax rates such as capital gains tax and income tax and lastly reduce the level of inflation by controlling money supply growth. These four policies were expected to increase investment and savings, balance the U.S. budget, reduce inflation, increase the economic growth rate, restore healthy financial markets and reduce

As a result of lower taxes, it prompted corporation to invest, leading U.S consumers to buy more. As the company grew, due to increased consumer spending, it would indirectly raise government tax revenues. The trend would trickle to benefit even the poorest U.S citizens. Reaganomics principles encouraged many industries to have self-control during the early 80s. This led to greater competition and lower prices for consumers (Boskin 1887).

The economy began to recover in 1983 and was surging in 1984. Unemployment and interest rates dropped, allowing more Americans to buy homes and cars (Moss & Thomas, 2013, p. 236). Inflation dropped to four percent, the lowest since the early 1970s. Americans were earning more money, and oil prices were dropping, making fuel more affordable (Moss & Thomas, 2013, p. 236). “Economic growth generated 18 million new jobs and tripled the price of stocks by 1990” (Moss & Thomas, 2013, p. 236).

After the post-war, the government set out to create jobs and rid communism. America was heading towards a capitalist society. At the time, the economy was booming and consumerism gave Americans a life of prosperity and leisure. Americans were able to purchase products only the wealthy could afford. Consumerism de-emphasized class difference and this created the middle class and the beginning of consumerism. The middle class is an important factor to the growth of the economy after the post war. However, the middle class is now fading away and the economy is starting to fall with it.

Reagan really focused on improving the economy during his presidency, with a plan he called Reaganomics, or supply side economics. The main parts of this plan were cuts on taxes and budgets, and monetary policy. Also, he wanted to reduce government regulation on businesses. He thought that these and increasing defense expenditures would heighten economic efficiency. Reagan managed to cut taxes by twenty five percent in three years. However, the plans did not work out at first, causing a recession that some call “The Great Inflation.” The national debt heightened substantially, and the rate of unemployment reached up to eleven percent. Despite these negative outcomes, the economy experienced a sudden growth and prosperity in 1983, which was

Between 1945 until 1973, America underwent the Golden Age for the middle class. During this period, the country ended a major war and the great depression, which made the financial climate conducive for the middle class. A substantial increase

The growing corporations in America dominated most of the economy, creating a large gap between the rich and the poor. During this time period food, lightening, and fuel prices declined significantly, and the cost of living

There were many critical issues with Reaganomics, which was intended to help expand the economy, but it eventually became the downturn during 1981 through 1982 (Foner 832). For example, the wealthiest American families benefited the most from the economic expansion because they had spent most of their income not on productive investments and charity, but on luxury goods and corporate buyouts (Foner 832). Whereas, the poorest 40 percent of the population’s incomes have declined, especially those with wives who did not work outside of their homes (Foner 832). Foner states that the 1980s was remembered as a decade of misplaced values because buying out companies generated more profits than actually running them or

There was a great boom in consumer goods. Ordinary people were encouraged through advertising and could now afford to buy goods like cars, refrigerators, radios, and among other luxuries that became necessities. These new inventions made home life easier for women and more enjoyable for men. Also, there was this “mass production” method to produce many consumer goods. Assembly lines like, Henry Ford’s factory. Production costs fell quickly, wages rose slowly, and prices remained constant. For example, in 1908 the average cost of the car was $850, but by 1925 that cost had dropped to $290. Many people invested their money into businesses. Some, bought stocks sold on the stock market, when companies did well, so did

In statistical terms, over the course of Reagan’s career, “seventeen million new jobs were created… with the unemployment rate falling from 7.6 per cent to 5.5 per cent over the same period” (Hannaford). The American middle class significantly grew during Reagan’s presidency, and by the end of it, “there were 5.9 million more Americans who had salaries exceeding $50,000 (adjusted for inflation) than when Reagan took office—an increase of 60 percent… [Furthermore,] there were 2.5 million more Americans who had salaries exceeding $75,000—an 83 per cent increase” (Hannaford). It is clear that, under Reagan, not only was the quantity of jobs increased, but quality as well, with a higher number of people

It is even abnormal for the rate of inflation to reach double digits. In fact, most of the time the rate of inflation stays below 5 percent. In addition to the increasing rate of inflation, the unemployment rates were at 7.6 percent (Marsico 62-63). The nation did not like this because more people were out of jobs, yet the cost of products were continuing to increase. Reagan’s plan was to have Congress embrace financial policies, decrease government spending and reduce its regulation of business. Most people know this plan as Reaganomics. His whole plan relied solely on the Economic Recovery Tax Act, which cut taxes over a three year period. The reason he relied on the recovery tax act was because he wanted the act to help people save money (Marsico 63-64). He wanted people to save money so that they could pay bills and taxes; in the long run, if people save money, it helps the government. Also, it would help people invest in the stock market and

The 1980's were centered around Reagan, it was sometimes referred to as the ¨Reagan Revolution¨. It had many up and downs, and a lot of money was spent. This was a time for much change in the American government and how money was spent. Reagan started putting money towards things to catch us up to other counties, in things such as education. While it seemed America was spending a lot of money, when compared to other countries it was actually

The largest group in America is facing extinction. We are talking of course about the American middle class. In 1971 the American middle class population was 36% higher than the population of the lower class. However, today the middle class population is now only 22% higher than the lower class (McDill). This is only a 14% drop spread over 44 years. The major issue here is that while the middle class shrinks, the upper and lower classes are growing. Financial experts believe that soon the middle class will become nonexistent and America will be divided into two extremes, poverty and wealth. This issue has become so severe that the United States government has stepped in and created a “middle class task force” passed as part of the

Although the notion propels many political debates, it’s simply not true. At the very least, it’s a debatable proposition. Yet I can’t remember a single journalist, debate moderator, or editorial board pushing back when a politician drops the usual trope about the middle class “shrinking” or “being squeezed” or “stagnating” or being “murdered?” It’s simply a given that the middle class is under duress.

Thesis statement: The upper middle class residents of South End proudly expressed their love for diversity in the community yet romanticized being helpful by controlling and reconstructing the original residential norms. In condemning the routinely behaviors and common establishments in the neighborhood, it became evident that their true intent was to control the population.