Nine years have passed since the great recession and the GDP is still on stake. The USA ranks near the top of the most unequal countries all over the world, people are jobless, and unemployment is rising day by day. There are many things which screwed hard working middle class Americans like low wages, billing, education, health care, their basic necessities and much more. As Thomas Friedman, New York Times columnist said “we are living in a shared economy”. Really!! It might be true statement for him, but not for those peoples who are fighting for their survival. In the article “The Guardian” Moira Herbst said that “we are living in a zero sum society”. The numbers of consumers are getting more, but the workers are not earning enough money to full fill the demand and supply rule. For Americans the idea of the ideal economy will remain a fantasy.
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In 2008 recession caused a huge drop in demand of consumers. The real median wage fall by about 2.8 percent in 2009 and 2012. The worst thing was that the productivity was increased by 4.5 percent but still there was a drop in consumer’s demand. As journalist Reuters’ Felix Salmon gave the example of a hair stylist who earned $12 per hour in 2009 earned $10.91 per hour in 2012. Now the well-paid jobs are wiped out with low wages because unemployed people have little demands and companies hire them on lower wages. The low wage occupations have now grown three times quickly as higher wage occupations. The Federal Government cuts 835000 jobs over the past four years for their profits, while 100 million of middle class Americans are living in poverty or in stressed zone. Now they are thinking how to sustain their lifestyle to keep from falling backward in earning as they have already lost 30 percent of their purchasing power since 1968 (Paul
In 2008 recession caused a huge drop in demand of consumers. The real median wage fall by about 2.8 percent in 2009 and 2012. The worst thing was that the productivity was increased by 4.5 percent but still there was a drop in consumer’s demand. As journalist Reuters’ Felix Salmon gave the example of a hair stylist who earned $12 per hour in 2009 earned $10.91 per hour in 2012. Now the well-paid jobs are wiped out with low wages because unemployed people have little demands and companies hire them on lower wages. The low wage occupations have now grown three times quickly as higher wage occupations. The Federal Government cuts 835000 jobs over the past four years for their profits, while 100 million of middle class Americans are living in poverty or in stressed zone. Now they are thinking how to sustain their lifestyle to keep from falling backward in earning as they have already lost 30 percent of their purchasing power since 1968 (Paul