Debt Vs Middle Class

There is a widespread concern about rising levels of debt. Debt can become disastrous for those who live alone or those families who are already having problems with supporting their family. The people who might be struck by debt, they might have trouble recovering. Debt can cause Americans to lose their homes and stability they need to feed, and shelter their families. Although debt comes upon us Americans quickly, people can see debt as terrible thing to be stuck with. It has many disadvantages that can devastate to people.

It can always be nice to imagine that you can go from very poor to very rich but in America, that’s not the case. According to a recent study, 70% of those born in low income families remained in the lower income bracket. Out of the remaining 30%, only 24% reached middle-class or upper- class and 4% rose to become high income earners (Hargreaves). Now, it is very difficult for people born into the lower class to rise up to the middle or upper class. These people that do successfully rise up have to have certain characteristics. 53% were college graduates, 50% were two income families, 35% were white, and 34% did not experience unemployment (Hargreaves). Most people in low- income families cannot afford college and student loans. This makes them less likely to become part of the middle class. Poor people do not have the resources to strive and become part of the other social classes. Overall, it is becoming more and more difficult for low- income families to become part of the middle class.

Despite the debates about social class, the United States is usually described as having four major social classes, the elite or upperclass, the middle class, the working class, and the lower class (Goldscmidt). Classes are generally differentiated by income, education, and occupation although other factors do have an effect. The upperclass consists of about 1% of the population making 750,000 dollars or more a year as investors, top executives, or heirs to large fortunes (Hughes and Jenkins). There tends to be no question about who is in the upperclass as they are pretty clearly isolated in their power and wealth. The middle class makes up about 40% of the population making anywhere from 40,000 to 749,999 dollars a year (Hughes and Jenkins). The large disparity in income and wealth have led to a further division of this class into upper-middle class and middle class in some circles. The middle class usually work white collar jobs as professionals and managers, however some highly skilled blue collar workers are included. Those in the middle class have usually obtained higher education degrees and place a high value on individual responsibility for one’s class (Goldschmidt). The working class is composed of about 50% of the population earning 13,000 to 39,000 dollars a year (Hughes and Jenkins). Some also divide this class into a working class and a

Everywhere you look at the United States you can find economic stratification. From the kind of vehicle you drive, to the kind of house you live in, to the kind of restaurants you eat at the most you will find economic stratification. Some might ask, does any of that truly matter today? Yes, unfortunately, it does. An important goal for most people is what’s referred to as The American Dream. Whether it is to attend a good college, get a respectable job, purchase the perfect house, and have a small family or maybe just to start your own business; that dream starts with wealth. People with more money will have an easier time with achieving the dream than a lower income person would. With wealth comes power and prestige as well. People with more money have better life chances because they can afford better healthcare, education, healthier food, and safer neighborhoods just to name a few things.

The media especially enjoys reducing the severity of the class disparity by pushing the idea that the majority falls within the middle class. Not only does entertainment follow a typical middle-class protagonists format but the news also allots middle class politics the most screen time. However, the middle class is actually shrinking indefinitely but this rising development continues to be ignored.

It can be said that money is power in the United States, and this is brought out in the essay, “Class in America---2012” written by Gregory Mantsios. He says that even though many Americans do not like to discuss class, “it can determine where people live, who their friends are, how well they are educated, and what they do for a living” (Mantsios). Many Americans do not speak about class type, and most find it unacceptable (Mantsios). Unfortunately, we can see that there are laws that are built to help and better the wealthy, while it cripples the rest of us. According to the Economic Policy Institute, “The richest twenty percent of Americans hold nearly ninety percent of the total household wealth in this county” (Institute) Gregory Mantsios without reserve describes the majority of people are at a disadvantage in their social class, while the upper class is compensated.

In Edward McClelland’s essay “RIP, the Middle Class: 1946-2013,” McClelland discusses to his audience that the middle class is slowly vanishing and soon enough we will only be left with the rich and the poor. Throughout the essay, McClelland uses various examples to demonstrate how the middle class will no longer exist. McClelland talks about how education is vital for pursuing a job at a reasonable pay that a person can live off of. Before, people were able to leave high school and go straight into a job with a pay that could support them. Nowadays, the same jobs that were supporting people before require a lot more education and still aren’t giving enough money that will allow them to live comfortably. Even though there are still jobs people can thrive at that will make more money without a serious education , the middle class is struggling to make it economically, because it is harder to find a job without education and financially it’s harder to make ends meet.

Income inequality has been seen throughout different societies. It has always been separated with the poor on bottom and the rich on top. Most societies in past and present have had little to no movement between the separations of classes. The reality for the poor in most of those societies is that they can almost never get to the level and quality of life of the rich. America compared to other societies in our past and present is a society that strongly believes in the idea of “The American Dream”. The American Dream gives hope to some people below the rich that they can someday be as prosperous as the rich if they work hard enough for it and show that they are capable. This idea implies that it is possible for anyone whether the person is middle or low class. It is not possible for low-income workers in America to move to the upper class because they lack the resources for better jobs, they are racially or ethnically discriminated in the workforce and the upper class takes most of the income in the US.

Nowadays, the middle class is shrinking, while majority of people are either moving into the lower or upper classes. This is due to the major economic and policy changes that have occurred throughout the past thirty years. Based on the Basic Economy Security Tables, one in four full-time working-age adults are not earning enough income to meet economic needs for themselves or their families. This is a serious problem in America today, the fact that the median income today is six hundred dollars less than it was in 1989 is proof of this epidemic. It is much harder now, than ever, to work your way into the middle class, much less stay there. The percentage income growth since 1967 for the top 5 percent of earners is 88%, top 20 percent of earners grew 70%, and middle-income households only grew 20%. (Camp) In simpler terms, the upper classes income has increased tremendously, while middle-income households have seen very little growth in their income. Since the middle class is not receiving any income growth, it is declining and moving towards the lower class. It is not nearly as easy as it was thirty years ago to get a decent job and make

Money has become the lethal weapon that controls everything in society, it is an essential need in order to survive. Without money one simply cannot provide for their basic needs such as food, housing, clothing etc. As the value of money increases in the country it creates a heavy burden on the lower class. In terms of wealth in the United States we have the lower class (bottom twenty percent), the middle class (second twenty percent, middle twenty percent), and the upper class (fourth twenty percent, top twenty percent). As time passes by, the gap between the top twenty percent and the bottom twenty percent rapidly increases, leaving a dramatic gap between the two. The question that comes to thought is, is the distribution of wealth in the

On top of it all the rich seem to get richer, spending their money on bigger houses, better cars, always trying to out do each other while the middle class continues to struggle. Paul Krugman describes this very well by saying,

Over the past few decades, the “American Dream” vision has been quickly vanishing as a result of the increasing troubles and weakening of the middle class. It has lost the view of being the most successful and wealthy middle class in the world, while the middle classes in other countries are excelling in earning higher middle and lower class incomes. The issue of the declining wealth of the middle class explains a huge problem in the United States’ future prosperity and well being for the citizens and the country. There are many issues that affect the success of the middle and lower classes, such as structural differences in the economy, culture, and government. The gap between the middle and high classes is increasing specifically. The United States has the image of giving people life and prosperity, but inequality is increasing significantly due to issues in education, decrease in taxation among the upper class, and decrease of middle class power in the democracy, while other ideas and mechanisms can be take from other nations.

In the article “Of the 1%, by the 1%, for the 1%” Joseph Stiglitz, a noble prize winning economist, argues that the upper 1% controls about 40% of all wealth in America. This top 1% has taken about a quarter of all income in America, and has seen their income rise about 18% in the past decade. This has made the inequality between classes in the US expand. Eventually, this inequality gap will even hurt the top 1%, because the other 99% will either fight for a bigger piece or just stop working all together. The top 1% can buy anything they need, but their fate realizes on the other 99% to work hard and not fight back. If the 99% stopped working, there would be a simple way to gain back money… that would be to raise taxes on the rich. However, the rich get rich by capital gains, which have a low tax policy. So overall, the upper percent can eventually learn, but a majority of the time it is too little too late.

The middle class is in the same position, but rather than common workers at the bottom, we have those in

The middle class people cannot move up. The middle class cannot get ant help from the government. It makes me mad that the poor Americans do not take advantages of some of the opportunities available for them. The middle class people sometimes work two or three jobs to pay for their own or their children's college education. The government should use the money they are sending to other countries to help the taxpayers. In my family we have just enough money to get by. I do not see the government knocking on my door handing me food or money. Why should they give my money to other countries? The government will not help my family because our gross income is too high to receive any help. Well true maybe our gross income is high, but we do not take all that money home. The government is taking money out of my paycheck, money that I struggle for, and giving it to other countries. I have my own dependents to take care of. I should not have to take care of other people. It was my decision to have my children. If I wanted more dependents, I would have them. The government also tells me that if I had gotten a used car with cheap payments then I would have extra money left over. Why should I have to get a used car? If I get a used car, I will only be spending more money getting it fixed. I am tired of the government giving me excuses on why I do not need any help. The only reason the government cannot help me is because they do not have the money. The only reason the