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The Impact of the Middle Class on the American Economy

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America is known to the world as the most dynamic nation on earth and is the foundation of effective and strong democracy. The bigger part of its economic success can be attributed to the widely shared prosperity of the middle-class citizens. However, America is faced with a number of challenges with regard to its economic structure. One major challenge that has been the subject of discussion for decades is the big gap between the rich and the middle-class. Even before the financial crisis that hit the American economy in 2007, the middle-class were experiencing troubles and difficulties living the American dream; the economic policy changes after the great depression made the middle-class conventional routes more difficult to voyage and security gnarled for the ones that were in the middle-class already. Despite these challenges, the middle-class citizens have proved to be an important part of the economy and are the reason why the American economy is considered one of the strongest in the world. In this regard, this paper shall focus on the counterarguments with regard to the arguments made against the middle-class in America by analyzing the impact of the middle-class on the economy and why the American corporate and economic structures have not made it hard for the middle-class citizens to live the American dream.

On the first account, according to Robert Reich, in his book, “the debate on the unequal distribution of resources and wealth started in the 1980s” p.399 During this time, there was a trend that characterized a society divided along social and economic lines and the larger part of the American wealth went to the top one percent of the American population.

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Currently, the thinking and stereotypes attached to the middle-class are still backwards. For instance, politicians perceive the middle-class as those that benefit from the American economic growth. Also, race is very much associated with the lower middle-class. In fact, most people refer to the black community as lazy people. Furthermore, most people believe that the current economic structure does not favor the economic growth of the middle-class and most people in the middle-class will never live to achieve the “American Dream.” Despite the efforts made by the government to change these perceptions and beliefs about the middle-class, a number of issues are still a stumbling block for most people in the middle class, the issues which include: gender inequality which has been a problem in the distribution of resources and has led to the emergence of many movements to fight for the rights and equal treatment of women in the political, social and economic sphere; the issue of race which has also played a central role in the gap between the rich and the middle-class. In fact, most people believe that the top one percent is the whites who take the bigger part of the American wealth leaving the rest to be distributed among the remaining 99 percent; and education which is also a factor when it comes to economic disparity. As a matter of fact, when Bill Clinton became the President of the United States, one of his main agenda was to invest in education; his reasoning was that most Americans who are not educated are left unemployed as a result of the lack of skills and knowledge required in the corporate field. Investing in education eventually increased the number of trained and skilled personnel to work and earn.

However, the focus given to empowering the middle-class citizens says a lot about the importance and the impact they have on the American economy. In fact, according to Aja Et.al, “the election of Barrack Obama into office raised the hopes of so many Americans as people had hopes that Obama would come up with legislation to decrease the amount of taxes paid by the middle-class while increasing the taxes paid by the upper economic class” p. 416. Primarily, the middle-class is the source of economic growth; a strong middle-class offers an established consumer base that ensures productive investment. For instance, Mark Liechty says that “the biggest consumption and production is with the middle-class; the upper-class consumes so little with the lower-class having little buying power” p.12. As such, stability to the economy is provided by the middle-class. Also, the middle-class is the major factor in the encouragement of other societal and national conditions that ensures economic growth. For instance, it is the precondition for a healthy innovation and entrepreneurship and the basis of trust that aids social interactions and lowers the costs of the transaction, a mainstay of public engagement that creates better governance and encourages education in the society.
Additionally, evidence shows that the ever-progressing American economy is as a result of the prosperity of the middle-class in America. In essence, the arguments made by a number of economists and analysts that the American economy is affected by the unequal distribution of resources are based on limited evidence considering the fact that the middle-class category of the American population are the ones that run the economy. For instance, progressives such as Mark Liechty, in his book in p.13, points-out to the center of the earlier century when America had both a healthy, strong and progressively growing middle-class and a growing economy. Basically, the economic growth of the economy and a progressive and strong middle-class are closely interconnected.

As demonstrated by Barbara Ehrenreich, the middle-class citizens are the ones that occupy the employment opportunities in America. In short, they offer labor which is a very important aspect of a productive economy. While narrating her experience as a restaurant employee, she recalls how the economic transition and industrial revolution is not an easy transition. For instance, she says: “the Industrial Revolution is not an easy transition, especially, in my experience as a worker” p.364. Also, D’Amato presents images that demonstrate the man power provided by the middle-class in the society p.409. Evidently, labor is provided by the middle-class which means that the productivity of an economy greatly relies on how strong and aggressive the middle-class is in the process of production.
Further, the corporate and the economic structure of the American economy have not made it hard for the middle-class population to live the American Dream. Most people believe that the structure is designed to make the rich richer while the poor poorer. In my opinion, I think the American economic structure favors any person that focuses on achieving their dreams. George Packer, in his book, narrates the story of Sam Walton who worked hard and made it to the top of the economic ladder. For instance, he mentions Jay Z as an example of a once hard working middle class who worked hard to live the “American Dream” p.354. His success is a demonstration that the economic and corporate structure of the United States opens doors to any person that is committed and focused on achieving the life they desire despite the race, educational background and social status in the society. For this reason, the world has repetitively referred to the American economy as the most dynamic economy on earth.

All said and done, the middle-class in America is one of the most important pillars of the economy of the United States. Being the working population, innovation and productivity are guaranteed in any country that relies on the middle-class. As such, the political opinions that the middle-class people are mere beneficiaries of a growing economy is a backwards argument that is unsubstantiated. In fact, the middle-class citizens are the economy drivers and have a direct positive impact on the economy.

Works cited

Aja, Alan, et al. “From a Tangle of Pathology to a Race-Fair America.” Dissent 61.3 (2014): 39-43. Print
D’Amato, Paul. “Visual Portfolio: Reading Images of Individual Opportunities.” Dissent (2014): p.409. Print
Ehrenreich, Barbara. “Serving in Florida.” and “Evaluation” in Nickel and Dimed (2001): 11-50. Print
Liechty, Mark. Suitably Modern: Making Middle-class Culture in a New Consumer Society. Princeton University Press, 2003.
Packer, George. The Unwinding: An Inner History of the new America. Macmillan, 2013. Print
Reich, Robert B. Beyond Outrage: What has gone wrong with our Economy and our Democracy, and how to fix it. Vintage, 2012. Print

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