It’s not surprising when another claim is made that the middle class is dying; reports and surveys have been made for many years now saying the same thing. This article puts the severity into a little perspective. Despite what many Americans believe about the strength and power of their wealth, wealth inequality is a major problem in the US. The Global Wealth Data Book has recently published new findings, and it isn’t pretty; upper middle class Americans are rapidly losing ground to the one-percenters, who averaged 5 million in wealth gains over just three years. “The upper middle class of America owns a smaller percentage of wealth than the corresponding groups in all major nations except Russia and Indonesia.” America’s bottom half compares even less favorably to the world, as it ranks in dead last with just 1.3 percent of national wealth.
Even though the middle class might be one of the worst except for a few counties, out top 1% is far above than most countries. These 1% help give back to the economy because by doing that they will receive tax cuts.
ReplyDeleteHaving a richer 1% doesn't necessarily help the economy. If that were the case then countries with worse income inequality with very a very rich 1% would be better off than the United States. It is better for economies when money is in the hands of the poor and middle class because they will spend most of the money, while the rich would save it. The poor and middle class consumption would boost GDP more than the rich saving would, thus increasing living standards.
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