The Rise Of The Middle Class

James Madison once stated inequality of the rich and poor predicament to be “evil” and believed that the government should avoid an “immoderate, and especially unmerited, accumulation of riches” (Johnston, 2016). As one of the founding fathers of our nation, James Madison had a concern about the separation between the rich and the poor. He felt the government should do what it could to avoid the separation, which one can infer that he meant for the government to tax the rich by a greater percentage, thus reducing the financial burden on the poor. A rift has always been present between the rich and the poor throughout history. Depending upon the job, the working class may or may not make enough to support a family. At this point, the

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

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

It is a fact that in the US, 50 percent of the wealth is controlled by 1% of the population. But is it really such an unfortunate reality that we would need a system other capitalism to stem the tide of upward movement of wealth distribution. In my view, what is wrong is not the 1 percent's hold on 50 percent of wealth but the resulting decline in middle class that is now a major problem for the US.

Today in America, income and wealth inequality has continued to grow at an unsettling pace. The rich continue to get richer, while the number of people categorized as lower class grows exponentially. As Joseph Stiglitz has explained, many theories that are seen as strongly Republican, such as the trickle-down effect, has caused the rich to take money from the poor, and as a result the lower class grows and the middle class disintegrates. The top 1 percent of America’s households currently holds 30 percent of America’s economy, which is much more than other first-world countries and helps to emphasize the extremity of inequality currently in America today. This increased inequality has in turn caused America to become a much more divided society; those born in poverty typically stay in poverty, with little to no chance of self-improvement due to a lack of education provided in their areas. In contrast, those that are born wealthy typically go to better schools, have better health care, and are all but spoon fed information on how to remain wealthy. These two sides of society almost never cross, and this causes the country to be more divided than ever. In order to limit this inequality, drastic changes must be made, such as large corporations paying their fair share of taxes and giving back to the lower class, and minimum wage should be raised. If everyone in America works together, we can raise social mobility and re-unite what has become an increasingly divided country.

The American dream is all but a figment of the imagination that is unrealistic to attain since it is becoming harder and harder for any middle class to sustain itself in the middle or the poor society to prosper to the intermediate class. What once was possible is almost impossible to achieve success and wealth through hard work, persistence, and action. The top one percent of the American society is making it impossible for the lower class to hold on to hope for a better future. The richer are getting richer by remarkably increase profits. Yet, the lower class wages have either decrease in some sectors of employment or have remained stationary resulting in “income inequality. That is “…the extent to which income is distributed in an uneven manner among a population” (inequality.org). Today it is even more evident that the lower class is stuck, unable to go nowhere. Savings is almost none existence to the middle and poor classes yet, they are working harder than ever before. Fortunately by having a free democratic society take control over “wealth inequality” the economic difference can stabilize through unionization for all low-wage labor.

The documentary “Inequality for All” focusing on Robert Reich, a Berkeley professor, Harvard graduate, and previous Secretary of Labor under Bill Clinton, argues how the United States economy is struggling with the widening income gap; indeed, since the 1970’s, the income gap between the wealthy and middle class has continued to widen which has created many problems within this country.

So, in Warren’s The Vanishing Middle Class, her question initially was, “What is the middle class?” Which laid out her platform for her main stance: to expose the true issues of the middle class and why they’re suffering. For example, she counters the idea that they’re spending too much money on consumer goods by observing that “fixed” and necessary goods are up while their wages aren’t keeping a pace. With that being said, she makes a suitable point that the cost of living in America for the middle class is rising at a higher rate than the families can handle. In recent studies, like the ones she’s cited using figures and diagrams, have shed light among the profound changes within the incomes of these middle-class families and how they’ve been kept in the shadows. For instance, she addresses the issue of savings and debt in our nation, by providing statistical information based on families over a thirty-year time period to show the dramatic change generation after generation. Warren also emphasizes that people are quick to blame middle-class’ short comings in wages on overconsumption (especially those of luxurious goods), however the facts, stats and graphs don’t match up with that, but that of fixed costs, the things you can’t avoid (housing and childcare) have gone up so the middle-class can’t be to blame for that. Finally, she discusses the impact taxes had on two-income families by emphasizing the ups and downs of family’s incomes over the past generation. Ultimately, what is at stake here is, if the majority of the middle class doesn’t get some form of recognition and attention needed soon, they’re going to be whipped off the spectrum of today’s society.

In the reading of Middle Class Shrinks Further as More Fall Out Instead of Climbing Up, it is very true about the findings about the middle class. Honestly, 35,000 to 100,000 in today’s money are a huge gap differences. This is where now they started calling some individuals upper middle class. The article also, does a great job talking about Social Security. When was brings in Social Security, can a individual who was making 700 every week at Shoprite (which is middle class), at age 64, then retire a 66, and collect Social Security, and only get a paycheck for 600 every week, did they just get moved to lower class? In the reading The Shrinking American Middle Class says age is a big factor, as well as race, family status, and education.

In ”Why the Rich Are Getting Richer and the Poor, Poorer” Robert Reich talks about the growing gap of higher class and the lower class of today’s society. He states that the rich are getting richer because they are the ones trying to take over the lower paying jobs.Along with that, the poor are getting poorer because of many losing their jobs due to competition with other countries because they are willing to work for less money. With today’s society it is common to replace low paying jobs with machines that end up cheaper and more efficient. Reich uses a metaphor to describe how the economy is doing for the rich and poor. This essay is informational and mature. In choosing this topic, Reich was reaching out to the older audiences by using

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

One such argument is that, the wealthy are job creators. This is the belief that the wealthy people of the U.S. are the ones that create jobs for the middle class. Therefore, the income they receive and low tax rate that they pay are justified. Another argument for opponents of higher taxes for the wealthy is that an increase in the tax rate for the wealthy will not create more revenue. It is argued that in fact it will weaken the economy, or in other words higher taxes will ultimately hurt job growth and the economy.

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 United States of America was once renowned for and demarcated by the size and successfulness of its middle class. Currently, America faces a shrinking middle class and a new rising oligarchy that is creating the largest wealth disparity in eighty years. Robert B. Reich wrote Saving Capitalism: For the Many, Not the Few, for the sole purpose of exposing the reasons why the wealthy get wealthier and poor get poorer. Reich contends that the free market vs government debate serves as a means of distraction, covering up the real issues of the top one percent reaping economic gains. Reich states in the book that the “free market” is a myth that prevents us from examining the rule changes and questioning who they serve. Reich further states “it is no accident that those with disproportionate influence over these rules, who are the largest beneficiaries of how the rules have been designed and adapted, are also among the most passionate supporters of the “free market” and the most ardent advocates of the relative superiority of the market over the government.”

The era of volatility has created a shift from America being the middle-class society to simply rich or poor (Sachs, 2011). A gap this large has not been experienced since the 1920’s (Sachs). “The top 1% of households takes almost a quarter of all household income” but an economy this top heavy will not be able to succeed (Sachs, 2011, p. 30). The working classes are struggling with housing, wage, and employment issues. Rich individuals are ignoring these troubles, shipping their business operations out of the country, thus furthering the downward spiral of the economy (Sachs). To make matters worse, this has become in a large part a political issue, because the rich can influence candidates with funding, where the poor and working