How to make America great again? (SCRIPT-middle class)

[변정윤_Demian]

Not many people think China is yet developed country. China has been developed for several years even without catching their breath. Now it is the biggest rival of the United States and known as economically second-top country in the world. It is no wonder they would be the richest and strongest, surpassing the richest country, US. The reason why many speculate like the above is this; Chinese middle class has overtaken US’s.

225m today make up China’s middle class. Having largest middle class means the possibility crossing an economic threshold to prosperity. United States has been the richest in the world for decades. Under the long success of US, the base lies in the “middle class”. In America’s thriving years, middle class is the key source. Let’s get look into American middle class in three parts; definition of middle class in US, the process of cultivating them and current circumstance with brief solution.

The definition of middle class is simple. As economists clearly defined, it is households having an annual income between 66 percent and 200 percent of the median US household income according to Pew research center.

The process of middle class from beginning in 1930s to facing difficulties today dates back to April, 1939. Films telling the story of a middle class families prevailed all over the United States. People in America, especially the poor, therefore, cultivated the eager of being the middle class. As World War Ⅱ ended, veterans were treated benefits, known as GI Bill, including payments for education and loans for starting businesses. Until the early 1980, middle class enjoyed wealthy and well-bing lives. However, as the “double-dip” recession occurred, middle class in Midwest and Rust Belt suffered the hardest, in which middle class households were the most. The economy displayed high inflation, making them hard to overcome. After lasting through years, there seemed a glimpse of prospects for better economy and life. Unlike people in America looked forward or hoped, the next scene happened is one more recession in 2007, this time it was terribly enormous, called “The Great Recession”. It created unemployment rises, reaching at 10 percent. It affected so hard that many people are still recovering today. As a result, now in 2016, middle class bracket in America no longer makes up the majority of people; rich and poor combined make up half the population. More serious problem is that income disparity is on the rise.

The way the middle class become healthy majority again is to make the economy functional. The best way to get the economy on the table is helping people consume. Middle class, still the largest, compared to the rich or poor, should spend money. To make people consume, what is important? Money. Consumption takes place after money. If one feels happy and rich, it triggers the desire of purchasing. Americans, however, cannot feel secure or wealthy due to their low income. Consider this; middle class earns money and spends it most in the market. Rich people who earn millions or billions do not buy 1000 cars or cloths or pillows. To let the market work and nation prosper, consumption is most important. The best one who can deal with that important job is middle class. Government should encourage them earn more and spend more.

The simplest way for this is rising minimum wage. Currently US’s is $7.25, however, it is too short. It needs to be at least $15. Rising inequality is harm for the economy since it creates a death spiral of falling demand in the end. Some might say increasing minimum wage is dangerous redistribution, just like president Obama tried suggesting increase to $9 an hour. This kind of requests, urging income rise, have been practiced by Worker’s Unions so far. It is no doubt that Middle class has been richer with Worker’s Union, achieving their rights. On the other hand, this time it is serious. If middle class continues to keep their purses in check, economy cannot work and US should give its name the strongest to China. This is high time for whole people in America to surge minimum wage to $15, if frightened to face recession once more.

As with the risen minimum wage, middle class can earn more money and it would be easier to consume. In the long run, market works well and country gets richer again. America’s prosperous eras like 1940s to 70s come up. This year, 2016, expecting novel president for the next 4 years in US, heed to a candidate who argues for rising minimum wage extremely high. To make America great again, the key is middle class.

American middle class-KOE in junior.hwp