Social Class Vs Middle Class

A fundamental question that economists and people alike are trying to answer is, “What impacts will there be, if it’s a continuous gap between the half and half nots?” In order to have a true democracy, there must be a thriving middle class. The middle class is becoming non-existent, because of the discrepancy in financial opportunity. As the gap widens between the half and the half nots, it has developed a culture that an ordinary person is less competitive, while making the best educated more competitive. This causes a recess in diverse thoughts and ideas of financial growth. This paper will discuss three reasons for economic inequality: When the middle class is weak there are fewer opportunities for social and financial mobility, the middle-class pays a higher portion of tax dollars that contribute to public services, and capitalism causes separation between the poor and the rich.
The wage gap interferes with social mobility and equal opportunity. Therefore is no fair opportunity for financial distribution between the middle and poor classes. The rich stays rich and the poor stays poor. …show more content…
An example of capitalism is a rich person can buy up a number of foreclosed houses and rent them out to desperate tenants at ridiculously high rate. Then, each time rent is paid, the landlord becomes richer and the tenant becomes poorer, and inequalities in wealth grow. According to Joseph Stiglitz, an economist and a professor at Columbia University say the economy” lack of opportunity means that its most valuable asset – its people – is not being fully used. Many at the bottom, or even in the middle, are not living up to their potential, because the rich, needing few public services and worried that a strong government might redistribute income, use their political influence to cut taxes and curtail government spending. This leads to underinvestment in infrastructure, education, and technology, impeding the engines of