ipl-logo

Identify And Explain The Importance Of Middle Class To The Economy

571 Words3 Pages

The importance of the middle class, GDP, and Economic Growth in the U.S. Market System to the individual is extremely significant to consumption, which creates an increase on the GPD rate.
Furthermore, a strong middle class promotes the development of human capital through a well-educated population. Following, a strong middle class creates a stable source of demand and supports political and economic institutions. Next, a strong middle class creates and encourages the next generation of entrepreneurs to come. Lastly, understanding that the market system demands consumption to operate and help the GPD rate to increase. The upper classes consume too little to drive it and have little purchasing power. The middle class supplies most of the production and consumption and stability to an economy. …show more content…

Also, this is calculated by the all produced goods and services generated by the state. Additionally, the GPD should be 3.5% to 4%, I believe we are at 2.5%. Understanding that if GDP is down at that low percentage, the nation faces higher unemployment rates, which causes wage limitations. If GPD increases, the opposite happens, the nation has a lower unemployment rate and the wage increase. But its low as of now, some if that is caused by discrimination, which is enormous still today. understanding this is control by the government. These factors can include job availability, wages, the prices and/or availability of goods and services, and would be looked at by a macroeconomics standpoint rather than microeconomics because it’s the economics that studies the behavior of the economy as a whole and not just on specific companies. If the government wants to stimulate growth in the economy, causing GPD consumption to improve, it will increase spending for goods and

Show More
Related
356 Words | 2 Pages

Although the American economy is improving from the great recession , the middle class is shrinking, a problem for a consumerist based economy where the middle class makes up the consumerists. Every industry has a place in today’s world, however some industries are losing importance while others

Read More
927 Words | 4 Pages

The middle class consisted of people who worked 9 to 5 jobs, and were able to afford entertainment. Meaning that this was the first time children were able to start actually living what we consider today as childhood, now that they don’t have to work in factories (“Impact of the Great Depression on Family and Home”1). However, during the great depression many middle class workers lost their jobs or had to work more hours for less money. Robbing these children of the freedoms they were previously given. Unfortunately, many children were pulled from school so they could get jobs to help provide for the family, some were sent away to live with other relatives, and many ran away (“What Were the Effects on the Children of the Great Depression?” 1).

Read More
1234 Words | 5 Pages

The author also explains that the reason why it was the Middle Class instead of the elite was because of the appearance of mass production. “ The

Read More
566 Words | 3 Pages

This middle class would have some of the luxuries of the upper class and would be way better off than the working class, but would still have to manage their money wisely. Some of these luxuries were authentic; however, many were just a cheaper version that was mass produced to look like it costs one hundred dollars, when in turn it only costs ten. These middle-class citizens would buy these things to make themselves look like the upper class, which wanted to be better than everyone else and have nicer things than everyone else. In this case, it was good that these things had a false side to them, but in other cases it can be good or bad depending on your side in things; like the

Read More
569 Words | 3 Pages

Economic crisis is the main force threatening the middle class today. There are certain expenses in the economy that have been piling up

Read More
300 Words | 2 Pages

Government plays a large part in the limitations of the lower and middle classes ability to succeed. In the movie “Inequality for All” directed by Jacob Kornbluth it is stated “Government sets the rules on how the market is structured”. Government funding can affect the economy and the success of the levels of the different classes. This is evidenced by the middle classes larger income equality that was seen in the 1940’s through 1970’s. During this period the government was investing in educating and as a result you saw increased prosperity of the middle class.

Read More
189 Words | 1 Pages

Work Cited Madland, David. " Growth and the Middle Class." Democracy Journal. 04 Mar. 2011. Web.

Read More
748 Words | 3 Pages

Reading through RIP, the Middle Class: 1946-2013, it became fairly obvious that the author, Edward McClelland, was presenting a thesis idea that consisted of promoting the middle class through examples of its prime time when middle class thrived. McClelland made the point clearly as he repeatedly provided examples ranging from the glory days of the assembly line industry that had provided high paying jobs for many people, to presidents who attempted to keep business within the United States to promote home grown jobs. He was especially focused on the point that the middle class was shrinking due to a large discrepancy between the wealthy and the rest of society as capitalism achieves its goal of padding the wealthiest and keeping the middle

Read More
410 Words | 2 Pages

The birth of the middle class. a. Comfort vs. wealth. Small business owners, managers, etc. 3. Agricultural workers. a. Industrialization helped to automate farming, but “middle-men” along with consumers were profiting rather than the farmer.

Read More
152 Words | 1 Pages

The middle class was created when factory managers, traders, and shippers became wealthy from the big production from the industries. In the 1800s the middle class split into two groups, the upper middle class and the lower middle class. The upper middle class

Read More
691 Words | 3 Pages

The rapid immigration caused a surplus of workers and poverty and unemployment became common. Although, skilled workers with jobs experienced high wages. This movement stimulated the economy and introduced the middle class of America. The Gilded Age was the birth of growth of the nation through industrialization and urbanization. Throughout the Gilded Age, middle-class Americans followed the concept of Social Darwinism.

Read More
729 Words | 3 Pages

Based on conventional theory of democracy which is that existence of the middle class as the main requirement of social formation will determine the successfulness of democracy. The middle class as positioned as the backer of the nation state is a class in society or a group of community when expressing their ideas are free from the state’s interests and assumed as independent group. Wong describes in the case of Malay middle class, he was classifying middle class into two parts; the first is coming up from aristocrats or elites, and the second is classified as intellectual community.

Read More
899 Words | 4 Pages

Some may say that it is true that middle class isn't bringing much in but it due to the stock market crash in 2009 but it has been growing since then. However this is not true. Middle class families are shrinking to the lower class and poverty line America. Brookings Institution defined this group as “including those with income between 100 and 250% of the federal poverty level, or between $18,871 and $47,177 for a family of three, according to the current numbers”. These reason are why middle class Americans no longer are the foundation of the American

Read More
1596 Words | 7 Pages

“And making sure the middle class has a little more money in their pockets to invest, to save, to grow the economy is good for everyone.” (Kennedy 2015) To have a stable and effective economy the government must have a strong middle class. The middle-class assists in the growth of the economy because of its ability to increase production when it comes to the products they buy and rely on. In Capitalism, Socialism and Democracy, Schumpeter states “Historically, the consumers’ desire for shoes may, at least in part, have been shaped by the action of producers offering attractive footgear and campaigning for it;” (2015)

Read More
688 Words | 3 Pages

Monika Motindabeka “Should a middle-class bohemian join the revolution” This matter would discuss the issues involving the industrial revolution. During this tragic time period, many lives were gone, because of the unsanitary, unsafe work environments and living conditions. Children as young as 5 were forced to participate in work to help better feed their family. The family is forced to reject their own and sell them in prostitution.

Read More

More about Identify And Explain The Importance Of Middle Class To The Economy

Related Topics

Open Document