http://money.cnn.com/infographic/economy/heres-why-the-middle-class-feels-squeezed/?iid=SF_E_Lead
The middle class household income over the part 18 years has not improved at all. This is concerning to many people especially with costs on the rise everyday. Since 1995, average college tuition has gone up 61%, cost of a house is up 13%, gas prices are up 94%, and there are many more examples shown in the article. With costs rising, and a stagnant income, people of the middle class have less and less dispoible income, this decreases saving, which gives them less financial freedom. The middle class is in a struggling state right now and has been for a while, this is a fact people need to realize is a real danger to a lot of people in the U.S.
The current size of the middle class is also decreasing. Rising costs should be offset by an increase in wages for the middle class
ReplyDeleteThis is definitely a concerning trend. The middle class is the heartbeat of the economy in a variety of different ways. Middle-class consumers have been known to create business opportunities that spur investment. Furthermore, the middle class makes up a large portion of the nation’s indispensable workforce. What’s more, entrepreneurship and invention have also historically been rooted in the middle class. Lastly, a strong middle class is vital to our national stability. I believe that it is a strong middle class that keeps our economy moving.
ReplyDeleteIt seems that the middle class has been suffering more recently than it has in the past. It is concerning that the prices of many things have been increasing over time, but the disposable income of the middle class has not. The inflation rate has been fairly constant over that period of time, and unemployment has gone up and down, but has better since 2008. However, this is an issue that the government may have to establish some type of monetary or fiscal policy in order to help the middle class.
ReplyDeleteI think it is also important to consider the large amount of income inequality that exists in the United States. Fed Chief Janet Yellen recently expressed great concern over the current income inequality. Yellen declared that the wealth gap is the widest its been in the past century. She also stated that the wealthiest 5 percent still hold two-thirds of all assets and that while there have been significant gains at the top of the spectrum, things have been stagnant for the majority. The majority she is referring to is the middle class.
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