The Economic Crisis and the Trade Barriers

2406 Words10 Pages
1. Phelp's plan for the working poor The media and the literature of the recent period place more and more emphasis on the phenomenon of the shrinking middle class in America. The trend has been present within society for several years now, but the internationalized economic crisis further deepened it. Today, the middle class is losing more members as these either become wealthier, or poorer. The cases in which the middle class citizens move up the social and economic ladder are rarer than the cases when the people exit the middle class as a result of increasing poverty. Due to the crisis for instance, the middle class citizens gained less access to borrowed funds; they also lost their jobs and became unable to repay their mortgages; they as such lost their houses. With these, the people lost their ability to pay for basic care services, such as health care. And this problem is observed not only among the traditional Hispanic and black communities, but also among the white population (Rapoza, 2012). In order to mitigate this and to provide better support for the people in the lower social and economic classes, the researchers and politicians have come up with a myriad of solutions, each with its own strengths and shortages. A notable proposition is the one put forward by Edmund Phelps, whose plan contains two propositions, as follows: First, Phelps suggests the implementation of tax credits for the qualified workers Secondly and alternatively he proposes the
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