Question

A number of prominent Keynesian economists have suggested recently that the major problem with our current economy is that policies and events have resulted in a greatly weakened economic middle class. Specifically, what they have said is that working people are hurting economically to the point where they can no longer afford to buy the products that middle class folks used to purchase in the past. As a result, consumer spending is way lower that it used to be, and this is dragging the entire economy down. Do you agree that this has happened? What policies should the government pursue in order to help the middle class if this is the case? What could be done to improve the economic lives of middle class Americans? Or, do you think that this explanation of the situation is incorrect? 150words

Answer 1

Middle class refers to the people who are working and comes between the upper class people and higher than the working class or lower class people. It includes businessman and even professionals or salaried employees etc. Generally the policies are made by the economists taking the upper class people or lower class people into consideration while the middle class people suffer the most. But sometimes people forget that it is the middle class who promote education and thus people get skilled and thus are more contributing to the economy and also they may help in stablising the demand of goods and services. A middle class will have the power to make the political and economic conditions strong and also encouraging the youth to excel.

In the United States of America the current president is thinking of eliminating the trade association with other countries and planning to have tariffs on the imports from chinese markets as well as mexican markets. This will help the middle class people of the united states of America to get secure jobs in the manufacturing as well as other sectors. All the jobs which were earlier taken by foreign people will be now taken back by domestic people and thus it may bosst the domestic economy and also it will lead to new setup of plants and manufacturing sectors increasing the job rate. Policies like these may help the middle class in getting their incomes increased and may also help the situation of invome equality.