Friday, December 19, 2014
It seems that as income inequality rises the middle class is shrinking. according to this article data shows that middle class household incomes remain stagnant at a near 25 year low, and the share of the nations economic gains going to the middle class has fallen to near-record lows. Also costs of living have risen make this problem even worse. I think that income inequality is becoming more of an issue in the U.S. but that what happens when you have economic freedom. Average income of the top 20 percent of earners rose by 42.6% in inflation-adjusted terms between 1979 and 2012 but the average income of the middle 60% only rose by 9.5%
https://www.americanprogress.org/issues/economy/news/2014/12/18/101790/as-income-inequality-rises-americas-middle-class-shrinks/
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With the middle class shrinking, I can't help to wonder how different consumption will be. For example, do you think house buying will be different?
ReplyDeleteIncome inequality is not a good thing at all for the United States. The majority of this country is in the middle class, so if income inequality keeps rising, the majority of the country will be hurt. It will cause the economy to go down because I believe consumption will go down. I also believe that the poverty rate will start to rise pretty significantly.
ReplyDeleteThe shrinking of the middle class is certainly something to worry about. With the poverty rate rising in America, I wonder how businesses and other classes will be affected. I think people need to try and save more money and not waste it on things they do not need. This will impact the economy though.
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