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Lacking The Middle In A Middle Class Society

1778 words - 8 pages

The global economy is the sum of all economies; a problem recognized and concerned is the elasticity and easily disrupted nature of market economies, resulting the shift away from human development to mass-market development. A vital contributor and mean of sustainment for the market economy is the middle class. Defined as the consumer class, a large middle class is representative and suggestive of low inequality; they are “powerful enough to be heard, but not elitist” (Birdsall). The questions that must be taken into consideration are as follows: Is the power of the developed middle class diminishing along with the group itself and how does it vary? Is it growing in less developed countries? If so, how will it affect the world economy and the speed of urbanization and development for the lesser countries? There are numerous answers to these questions and conflicting views on the health of the middle class; some find that it is the backbone of both the market economy and of democracy in most advanced societies, and others find that countries that have a larger middle class tend to grow faster, if they are not too ethnically diverse (Banerjee 3). On the other hand, others believe that power, in the hands of the middle class, is unhealthy for the market economy because they tend to have higher debts from loans and credit cards, contributing to a substantially high national debt.
The majority of opinions on the middle class are positive ones; they contribute to economic growth, capital accumulation, household consumption, entertainment, technology, education, healthcare, and business (Banerjee 7-10). An overlooked but crucial issue concerning both China’s and the U.S’s middle classes is the widening gap in inequality and unequal distribution in income for it’s people; these factors have contributed to an hourglass effect (shrinking) on the middle class in the United States and a growing middle class in China. I believe the success and stability of market growth is due to the people, the promotion of human rights, public welfares, and equality. The key to development and societal success is human development, public welfare, policies of health, education, and housing, are fundamental in sustainment and growth of the economy and the people. In this paper, I will explain the negative affects of the hourglass effect on the U.S.’s middle class and the growth of China’s middle class, and how both countries differ in treatments of class structure, gaps in income, and social welfares.
Each economy goes through various stages of success and failure; they must adapt to and develop new policies for an ever-changing economy. The fluctuation in market and economic power is reflected by rising successes in business and foreign exports. More recently, the newfound decoupling of the U.S and Europe as leading forces, gives emerging countries rising influence in markets, business, finance, trade, and development, and in turn, revitalizes and reconfigures the idea...

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