In this paperwork, I am going to handle the topic on middle-class squeeze and how it affects the economy, security, and the future of the United States-income inequality.
Income inequality has become a burning issue lately in the United States, whereby, experts are seeing it as a threat that holds back the economics of the United States. President Obama was heard on CNN referring to income inequality as the crucial issue of our era. The rising trend in income inequality over the past years has led to many Americans citizens losing their faith in some key aspects, such as living the American Dream that promises of a future that will inexorably be healthier than the past (Smith, 2012).
I will start by defining the phrase income inequality- income inequality, chiefly, refers to the uneven allocation of income within a precise area. The metric used to measure income inequality is referred as the Gini Coefficient. Hence, when income is unevenly distributed in a country; it creates a good environment for the growth of income inequality. It creates, income inequality, differences in the society for those who have and do not have, thereby, developing hate between these two groups (Smith, 2012).
Those who do not have blame those who have of their failure. They think that those who have rooted from them, hence building up the spirit of revenge that ends up affecting the security of the United States negatively. It is said that Income inequality can be brought about by gender, race, or education level. In the United States, those with lower education level are, most, likely to be found in the lower income segment as well as women and the minority races, such as the blacks and Hispanics. It becomes hard for the lower income citizens to meet their basics needs, hence the reason why they engage in illegal activities, such as stealing from those who have.
Through the literature review, the income gap in the United States continues to grow, since the late 1970s. Economists and sociologists argue that the growing gap in income inequality is as a result of cutting taxes on the, very, wealthy Americans and the growth of the finance industry. This action adopted by the government, cutting taxes, has created a good environment for the growth of the fabulous rich society. It is also important to note of the tremendous growth in technology that has led many middle-class workers home, since their jobs have been taken by machines, hence causing the issue of middle-class squeeze a reality. The question that we should be asking ourselves is what happens to these middle-class citizens who go home. Remember that the middle-class citizens play an important role when it comes to maintaining an economically stable society (Greenhouse, 2008). Their high rate of consumption ensures that money is in circulation and, at the same time, both goods and services produced by firms have access to a ready market. By sending these middle-class workers home will reduce their purchasing power, since they do not have access to regular flow of income-salary. The middle-class citizens will be forced to consume their past saving, but it will reach a point when their saving will not be adequate enough to meet their basic needs, hence joining the lower class segment. It is, therefore, clear that the middle-class squeeze will result to the widening gap of those who have and do not have, thereby; tampering with the security of the United States- the lower income society will be forced to steal from those who have in the long run (Davidson, 1980).
Through the literature review and the interviews, I found out that many American economists and philosophers say that intense income inequality is a problem, hence the need for appropriate measures to be implemented, so as to solve this situation before it get out of control in the future. Many experts think that income inequality is responsible of holding the United States economy in recession, hence making recovery an impossible act to achieve (Smith, 2012).
Through research, I noted that income inequality is associated with all sorts of bad things, such as obesity, high incarceration rates, and violence. Some experts argues that the societies living in the United States can become so economically separated that citizens stop seeing each other as equals, but rather as classist. It is, therefore, clear that income inequality is an issue that should be addressed as fast as possible, so as the citizens can gain their trust back and continue to live the peaceful American Dream. It is important to note that division brings with it insurgence that is not healthy for a nation like the United States. Others experts argue that income inequality hampers fiscal mobility, meaning that it is less likely that American Dream is in fact a veracity for the people of the United States. I call upon the United States government to come up with measures that will curb the growth of this issue-income inequality. If the government fails to act on income inequality, then, it will totally be held accountable by all the citizens living in the United States in future. But, before I conclude, for a capitalist society to flourish, United States, income inequality is essential for it encourages; rivalry, hard work, and originality. Hence, income inequality is required in a capitalist society, but is should not be too high, since it would result to the occurrence of a wide gap between those who have and those who do not have (Davidson, 1980).
Smith, H. (2012).Who stole the American dream? New York: Random House.
Longworth, R. C. (1998). Global squeeze: the coming crisis for first- world nations.
Lincolnwood, IL: Contemporary Books.
Greenhouse, S. (2008).The big squeeze: tough times for the American worker. New York: Alfred
Brander, J.A. (2011) . The middle class in America: perspectives and trends. Hauppauge, N.Y.:
Nova Science Publishers.
Davidson, J. D . (1980).The squeeze . New York: Summit Books.