রবিবার, অক্টোবর ২৫, ২০২০
লেখালেখি ডেস্ক
১১ আগস্ট ২০২০
২:৫২ অপরাহ্ণ
Why is the Middle Class Disappearing in the USA?
Why is the Middle Class Disappearing in the USA?

১১ আগস্ট ২০২০ ২:৫২ অপরাহ্ণ

Politicians tend to define "middle class" because the group of individuals presumably concentrate on their latest sales talk for re-election. Recent studies done by the US Bureau of the Census indicate that the center half household incomes fall between $25K and $75K within the USA. Over the past 20 years, the number of households in those brackets decreased by 3.9%, from 48.2% to 44.3%. During an equivalent period of time, however, the number of households with incomes below $25,000 decreased by 3.5%, from 28.7% to 25.2%, while the number of households with incomes above $75,000 increased over 7%, from 23.2% to 30.4%. (Income, Poverty, and insurance coverage within the United States: 2006, U.S. Census Bureau). So if the center class is indeed shrinking, is it because more households are getting wealthy or upper-middle-class? Or has the info changed recently? There has been much debate (most of it political) on this subject.

Since this study was undertaken by the Bureau of the Census, some major economic changes have taken place within the USA. In late 2008, the simultaneous collapse of the US automotive industry, the housing market, and major investment portfolios created a depression that rapidly became worldwide. The United States government responded by pumping large amounts of cash (roughly $1 trillion) into the banking industry and public infrastructure programs, hoping to hurry economic recovery and stem the tide of job losses. However, we aren't out of the water yet. As this text is being written, the percentage in Ohio has topped 11%. In Michigan, it's even higher (15%).

It is easy (and tempting) to urge "partisan" and blame these events on one national party or the opposite. Certainly, both have made their contributions to the matter. But we believe the present economic malaise is that the results of the subsequent trends:

1. Massive national and private debt. The US debt has risen more within the last five years than within the entire history of the country. Even worse than the debt is the unfunded obligations of the United States government in future years. Trump and Kiyosaki say that the unfunded obligations for Social Security are roughly $10 trillion, and people of Medicare are roughly $60 trillion. They compare these to the estimated value of the whole ny stock market at $35 trillion. These massive obligations are the results of unfunded promises to the massive generation of baby boomers who are approaching retirement age. there's simply no answer of this morass that's without significant pain. Second, personal debt is additionally at an all-time high. one among the explanations for therefore many home mortgage foreclosures was homeowners using their home equity as a "piggy bank" to fund cars, vacations, luxury items, home improvements, etc. When the housing bubble burst, many of them couldn't continue with their mortgage and Mastercard debt.

2. truth emergence of the "flat earth." Thomas Friedman's book, the planet Is Flat, warned us that this was coming. Many skilled jobs are being shifted from the US and Europe to emerging nations like China and India. This, also because the unfunded promises US automakers made to their own workers, created the setting for his or her downfall. The United States government is tempted to interact in protectionism to show this around, but history has proven that this approach won't work. So regardless of what percentage diatribes you hear about NAFTA or "big companies moving jobs overseas", the tough reality is that we are rapidly shifting to a worldwide economy. When the US was real economic power, we could have more influence on global trends. Now, we are a debtor nation. Like your Mom always said, "Debtors cannot be choosy."

3. The growing cost of energy. most of the people feel the value of gasoline first, but the impact is additionally felt in gas and electricity. High gas prices were certainly impacted by the Iraq war, but the shrinking supply of "cheap" oil and therefore the rising cost of "clean" energy production is driving the worth ever higher. High energy prices strike at the very heart of job creation and private finances. Most bourgeoisie Americans drive their cars to figure, to shop for food, etc. the worth of food is additionally linked to the worth of energy due to the high level of automation in US agriculture.

Debt, economic globalization, and high energy costs have created the "perfect storm" for economic disaster. As Trump and Kiyosaki mean, a disappearing bourgeoisie may be a threat to democratic capitalism itself. Well, enough of "bad news." How can we fix this problem? They suggest some legislative and political solutions, but most folks are powerless to force our own government to try to tons of adjusting, a minimum of as individuals. What can we do to guard ourselves and our children/grandchildren? We just like the answer Trump and Kiyosaki give: we will prefer to become wealthy. In today's world, the selection might not be whether you would like to be rich or bourgeoisie - it's whether you would like to be rich or poor.

You can prefer to become wealthy by enrolling within the school of adversity and gaining a "financial education" - the type that's (unfortunately) not offered in US high schools or universities. instead of turn your hard-earned savings over to a "money manager" who will charge you whether he makes money for you or not, you'll learn to form your own investment decisions. there's zero evidence that professional money managers, for instance, can routinely outperform the quality and Poors stock market index. So why do you have to pay them? Investing isn't nearly as complicated as most would have you ever believe. And certain sorts of investing have tremendous leverage and tax advantages. the sole reason to not become informed within the Age of the web is laziness.

We highly recommend reading Why we would like You To Be Rich, but we also recommend you become a significant student of your own wealth creation and preservation. Whether you're "middle class", "upper middle class", or "wealthy", you're liable for your own economic condition. Only the very poor can afford to depend upon the govt to require care of them. And as financial reality hits the USA, the United States government goes to be forced to disappoint us all.

"Dr. Dick" Pritchard may be a successful high-income professional and Internet marketer. he's employed with other professionals like himself to make wealth and diversify income sources.

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