Middle Class Numbers Shrinking

 

One would think that decreasing the number of middle class families would actually be a good thing in the minds of average Americans. This is because most would equate it to more people making the leap into upper class incomes. However, over the past 15 years, this number has decreased more because people are falling into lower class and poverty levels than they are staying in the middle or moving above the rest. Most would blame the great recession for these declines. While others blame policies that were enacted by either the Republican’s or the Democrats, but regardless of who is to blame it is the reason behind President Obama’s remarks during the State of the Union address.

In reality more people have to work longer in age than they would previously. According to Texas Monthly, they work for a lot less money relative to spending power than they would a couple of decades ago as well. Even though the United States has the world’s leading economy at the moment does not diminish the underlying problem which is inflation and job growth say experts like Lee Slaughter. With gas prices coming down, one would expect goods prices to come down as well. But they have not, which works to stifle the economic growth. Also, while many companies have announced they are increasing wages, they are not increasing production or the number of workers. This also works against growing the struggling economy. Until companies bring the costs of goods down, and the number of workers up, a true middle class recovery may not be attained.