With the monthly job report just being released this January
we see some troubling facts that may have a significant impact on the middle
class.
High-end luxury items as well as top of the line restaurant
have seen slow growth in sales while company’s like Red Lobster and Loehmann’s
are closing down. The American Economy has not seen inequality like this since
the 1920’s. Tax cuts intended to have companies invest more into producing
goods and services, we now see being pocketed and spent on luxury items.
Although the average income in America remains stagnant at
the moment, consumption has slowly risen. Forcing one to wonder, are people
just piling up debt? The author argues that Americans are beginning to live
unsustainably, however it is always important to keep in mind the increasing
price of a college education.
-Kyle Foster
Though this article makes a great point, that the supply side of economic thought is dead, the writer contradicts himself saying that 'the rich' spend all their money on luxury items while towards the end he notes that they are also more likely to save. I think the real problem we have is realizing that business is more about marketing and image. Though there is a luxury item to purchase, it doesn't mean it was built or planned by a conspiracy of rich people to kill a potential middle class. It just becomes easier to step back and make a generalization. Well, thank you CNN. Good post.
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