The American Middle Class Becomes Extinct
The Plight of the American Middle Class
In Nineteenth Century Britain, Sidney and Beatrice Webb set out to solve the economic and political crisis of the day; that was the condition of the Working Class. As America advances into the Twenty First Century, a similar project may need to be envisioned and executed on behalf of the Middle Class.
The Numbers Speak For Themselves
The Current Ecosystem
The American Middle Class has become indebted to maintain itself, rather than to move upwards. In the recession and recovery, the downward mobility vector has been greater than the upward one. Middle Class jobs that were lost in the recession have either not been replaced, or have been replaced with much lower paying jobs. The growth of lower paying jobs challenges the Middle Class ability to remain indebted to fund the maintenance of Middle Class status, without a fall in living costs.
The American Middle Class is at an inflection point; at which it can either continue its gradual demise or vanish rapidly. The Debt Crisis of 2008 was the wake up call for the Middle Class,when they realised that debt was not an option for maintaining their status. The Federal Government took up the debts, but the recovery has not created a Middle Class that is ready to take the baton back from the Government. What compounds the situation, is that the same Middle Class must assume the debts that the Federal Government has expanded in order to stimulate the recovery.
The solution is economic growth, however this must be qualified by saying that this growth must be in mid to higher paying jobs; in order for the Middle Class to stimulate the economy and pay the Federal Government's debts. In the absence of growth however, the tendency to create inflation to address the issues of income and debt gets stronger every day.
- A Look at 30 Years of U.S. Minimum Wage [Interactive] | Tax Break: The TurboTax Blog
Labor Day is already here and for many hard working Americans, it's a time to relax and celebrate our hard work for the year. It also marks the end of summer and is typically the time for students to get used to waking up before noon and head back-to
- Making Our Middle Class Stronger | Center for American Progress