The Economic Crisis and the Trade Barriers

During the past couple of decades, the decline in the middle class has been associated to the political agenda of the Republican Party. By ending governmental subsidies and other programs created to build the middle class, has ultimately ceased the growth. However, realizing the importance of the middle class to our fragile economic platform, the Democratic and Independent political parties are desperately trying to create and revamp the middle class

In other words, America has a widening gap between its wealthy and poor. As the rich get richer and the poor get poorer, there is a problem emerging: the disappearance of the middle class. Low-wage workers continue to fall behind those who make higher wages, and this only widens the gap between the two. There has been an economic boom in the United States, which has made the country more prosperous than it has ever been. That prosperity does not reach all people; it seems to only favor the rich. Rising economic segregation has taken away many opportunities for the poor to rise in America today. The poor may find that the economic boom has increased their income; however, as their income increase so does the prices they must for their living expenses (Dreier, Mollenkopf, & Swanstrom 19).

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.

Publisher, Richard V. Reeves, in his online article, "The Dangerous Separation of the American Upper Middle Class," shares how income, education, and political power have caused a split in the upper middle class. Reeves's purpose is to convey the idea that the upper middle class has shifted from being a sociological curiosity to an economic and political problem. Reeves outlines how the upper middle class that was once considered an accessible hope or American dream, is now a blockade and an obstacle for others. He adopts a rational and analytical tone to appeal to the reader's sense of reason. Reeves cites convincing facts and statistics as well as successfully uses emotional appeals. However, toward the end of the article his attempts to appeal to reader's emotions, weakens the credibility and ultimately his argument.

The middle class usually does not fare any better in America. The middle class, like the poor minorities, do not usually move up from their current position. This is a problem for those of color. It is no secret that black or minorities are more likely to suffer in an American economy. “ Just as striking,however, is the fact that black children born into middle-quintile families are also twice as likely to be downwardly mobile as middle income whites ” (Reeves). Blacks are at a disadvantage in this country when it comes to upward mobility. Whites on average are doing a lot better than other races with an “average of 57,009”(Perlberg). Blacks are even behind in income. “Large racial and gender gaps in the U.S. remain, even as they have narrowed in some cases over the years. Among full- and part-time workers in the U.S., blacks in 2015 earned just 75% as much as whites in median hourly earnings and women earned 83% as much as men”(Patten). The gap between whites and minorities in America keep the dream farther and farther away. Since the middle class can 't grow it means that in the end the American is a stretch.

Publisher, Richard V. Reeves, in his online article, "The Dangerous Separation of the American Upper Middle Class," shares how income, education, and political power has caused a split in the upper middle class. Reeves 's purpose is to convey the idea that the upper middle class has shifted from being a sociological curiosity to an economic and political problem. Reeves outlines how the upper middle class that was once considered an accessible hope or American dream, is now a blockade and an obstacle for others. He adopts a rational and analytical tone to appeal to the reader 's sense of reason. Reeves cites convincing facts and

In 1978, the economy started suffering in the US, because the middle class was getting weaker, and inequality started increasing. According to Reich, the middle class is directly associated with the economy, because 70 percent of the economy is summoned up of consumer spending. The middle class is the foundation of consumer spending. In the late 1970’s and early 1980’s, wages

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

In Robert Reich documentary “Inequality for All” he makes a compelling discussion about the serious crises that the United States faces due the widening economic gap. He looks to raise awareness of the U.S. economic gap between the rich and poor. According to Reich the widening divide in America is real and growing. Income levels at the middle and labor class is stagnant and are at it’s lowest levels compared to upper class incomes since the beginning of WWII and is growing wider each year. Reich suggests that the economy runs more smoothly when the middle class has jobs with fair wages, when unions are strong, and when middle class workers have some extra money to spend if possible when the government uses the tax policy properly and when it raises the minimum wage regularly to control the income gap between labor and management. In other words Reich argues that economically healthy middle and labor class equality is the foundation of a thriving economy and is necessary to maintaining a sound national infrastructure and educational system within

While it is true that technological equipment is advancing at a faster rate than we can think or that education is the key to a brighter future, it does not necessarily mean that we need to leave the middle class behind into ever existing. In “Confronting Inequality”, Paul Krugman quotes a Thomas Jefferson line that reads, “The small landowners are the most precious part of a state” which the meaning stands for itself. It is an assertion that the middle class or lower class is one of the most valuable classes of all and without it, America wouldn’t be itself. This dramatic inequality that we live in has turned us into a society with a hopeless and weakened middle class. What Americans don’t seem to realize or sympathize is that the middle class is struggling against the trend of decline. The bulk of the middle class population now believe that the potential of oncoming generations to afford college will never repeat itself and that workers will uncertainly feel as secure in their jobs as they once did in the past

This “middle-class nation” is struggling to support all those who live in its borders and the misconceptions about wealth are vastly overrated. Furthermore, the idea of wealth and stability is incorrect, and there is a very sharp contrast between the rich and poor in the country. As the richest twenty percent of American hold ninety percent of the total household of the total household wealth in the country, those at the bottom have managed very poorly and suffer to get through the days.

Capitalism has been the central force behind the growth of the United States’ progressive economy. Within such advanced economic system the chances of economic disparity are significantly high. In fact, over the past three decades there has being a steady increase in unequal wealth distribution among the economic classes. To sustain the current unequal wealth distribution among the classes of the American population, there are numerous factors that influence and shape this trend. For some members of the population it is alarmingly disturbing to know that recent statistics have shown that, “In the US [alone] the wealthiest 1% of its population owns more than the bottom 95 %” (Gutman). As for the difference in economic wealth, it resulted

When reading Middle Class Shrinks Further as More Fall Out Instead of Climbing Up by the New York times, I could see their opinion, yet Obama state one part that support my thoughts of why middle class remained stable, and also having broken off the upper tiers of middle class, creating the new upper-middle class. President Obama stated, “Reviving the middle class, offering a raft of proposals squarely aimed at concerns like paying for a college education, taking parental leave, affording child care and buying a home.” The middle class society remains stable, but the items around them became more expensive. In 1975, Ford Mustang cost $3,620, (Vaughan,2008) and then I remember my sister buying a GT in 1996 costing around $10,000. Now 20 years

A relatively large size of the middle class is the guarantee of a healthy and balanced economy. Many researchers observe more and more polarized economy in United States. To measure how much does the middle class shrink and what changes in their spending pattern, I may find in what aspects do they shrink and why. Based on analysis of data mainly from US Census Bureau and Labor Statistics, I examine the status quo of middle class by analyzing real median household income, polarization, income inequality and Lorenz curve. I also try to explain the reasons behind by regression analysis. By studying the consumer spending behaviors after crisis, I could see directly how households respond and how they alter their spending accordingly to the new economics environment. In the end, I also compare the trends of other countries after the recent financial crisis to see how the phenomenon effects and spreads globally.

    The disappearance of the middle class is a controversial topic, and can affect the government. How do different governments’ approaches towards the economy affect the middle class? For the purpose of this essay economy is a government-run institution that manages the trade, consumption, and production of goods. The middle class is the social class between the rich and poor, an economic status. If a country's government gives a fair chance to all social classes and not just rights to the rich, then the middle class succeeds. The graph shows the percentages of middle class income in America and European Countries.