The Decline of the Middle Class - Research Paper Example

? The decline of the middle is an encompassing matter that has many aspects within its scope which includes social, political and economic. Themiddle class represent the densest part of the population but this does not necessarily equate to having the most power. On the contrary, to say that the middle class is the ruling class would be a great misconception. They define the typical American family and the typical American worker. The middle class represent the very foundation of what the nation is. Within the middle class there tends to be a range of classes from upper middle class to lower middle class. They then define what we come to know as white collar jobs and blue collar jobs. These classifications show the diversity of this social stratum in a way that only emphasizes their vast contribution to the growth of the nation and what they fundamentally embody, the American people. The ruling class, many would argue, pertain to the country’s upper class that holds wealth and a monopoly of power. But rather than being antagonistic against this other class, most Americans aspire to be part of it by becoming rich. Contrary to the privileged few, a survey show that around 45% of Americans identify to being in the middle class. These people include highly educated professionals such as lawyers, doctors, engineers and managers. They are classified into living in the suburbs and partaking of other posh activities including country clubs. Similarly, another face of the middle class includes small business owners also called the ‘petit bourgeoisie’ among others. “Thus, in subjective terms, the middle class is the largest single class in American society, but in cultural terms, it is highly diverse because so many different lifestyles are represented within it” (Kornblum 275). There is no doubt that there really has been a drastic decline in the country’s middle class. This decline is characterized in a number of characteristics that correlate to each other. Since the 1970s, the number of household living within the classification of middle income earners has declined due to a number of factors. The increasing gap can be traced to the growing inequality in the income among families. The latest data recorded by the year 2007 in a study conducted by Stanford University showed that 44% lived in neighborhoods classified as middle income. This is down by 21% from the 1970 recorded 65% of families as middle income. To show the discrepancy, one-third of the families in the same area classified as affluent or within poverty increased from 15% in 1970. This study was conducted through a census involving 117 of the largest metropolitan areas throughout the United States. It is part of US2010 funded by Russell Sage and Brown University. What this implies, Stanford sociologist Sean Reardon explicates, is that the next generation will see the most effects. More children will have less access to better education and child care. In a sense, the affluent families will be isolated to their own class with less interaction coming from public amenities such as schools and transportation. This could perceptively affect future investments and public policies for the benefit of mostly the middle class population. The gap between the rich and the poor is also seen in test scores and consequently college education. More children from well to do families are able to complete college compared to low income earners (Tavernise, n.p.). The disparity in education is an easily apparent effect of the continued decline of the middle class. As the gap between income increases, more and more of those from the higher strata are able to afford the increasingly high cost of university education. The bulk of the middle class are in turn become unable to support sustained tertiary education in expensive private institutions. This then becomes a vicious cycle as those from lower income families often begin their career without college education. Education is universally known as a determinative factor in professional success. More often than not, a college diploma could mean the difference between light and day in landing a suitable and profitable career. As Frederick Strobel and Wallace Peterson points out, “the economic opportunities for children in such families is undeniably negative; adversely affected is income, lifestyle, standard of living, or, in a word, ‘class’…”(12). The gap then continues to increase and the middle class continues to decline. Ben Gernsten makes a compelling point that the downward spiral especially felt by the working middle class can be traced back to the first year in the presidency of Pres. Barack Obama. The loss of jobs is a significant blow to the economy in the general sense but this is felt tremendously by the people in their actual life. In 2009 when Obama took office, unemployment rate was at 7.8% and the number of people in the right age seeking employment is at the level in more than 30 years while those working are actually making less than 10 years prior. Furthermore, 49% do not have savings to last then 3 months in case of a financial emergency while 28% completely do not have any money saved up. Gernsten further presents five charts that strengthen the proposition of the decline of the middle class, these are: first, ‘economy offers fewer middle-wage jobs,’ second, ‘household income declines,’ third, ‘Young and Middle-Age Workers Earn Less,’ fourth, ‘Food Stamp Use at All-Time High’ and fifth, ‘gas prices have almost doubled’ (n.p.). The first is the most obvious indicator of the decline. The jobs actually offered in the time of recession are mostly low-paying at $7.69 to $13.83 per hour compared to the range for middle-wage at $13.84 to $21.13 and the higher wage at $21.14 to $54.55. The mid-wage occupations showed the worst decline compare to the low-wage and higher-wage occupations. Next, the median household income according to Sentier Research, an economic consulting firm, is now only at $51,130 than four years ago in 2009 and even lower than in 2001 at the end of President Clinton’s term. The young and middle-age workers are the most affected who now have less capacity to save for retirement. Food welfare has become a better option for many Americans which increased to more than 50% 47.7 in September 2012 from 31.6 only in December 2008. Finally, gas prices continue to spike, now at an average price of $3.33 a gallon from $1.78 back in 2009. At certain times, this has even reached an average of $4 during President Obama’s term (Gernsten, n.p.). The Organisation for Economic Co-operation and Development (OECD) Employment Outlook cites the trend by OECD countries toward decline in labor’s share in the past 20 years. This shows a drop to 61.7% from 66.1% from the national income. It found that low-income earners suffered most but high-income earners got the biggest share. In the country, the decline has been from the 1980s where labor share is at 4.5% excluding the income of high-income earners. The OECD names the employment of labor saving devices by corporations as a major reason for replacing human workers but this does not in itself explain job losses. Two things pointed out as culprit are the adverse effects of deregulation by industries and the bargaining power of the worker in globalization. “Rather, what they found is not a decline in low-skill jobs, but a decline in jobs that pay middle-class wages” (Appelbaum, par.5). The issue of underemployment escalates as fewer jobs fit a person’s qualifications and salary requirement. The trend of unemployment not being the only problem in labor sector manifests itself and finds its way to ultimately relate to the matter of the middle class. These issues of labor woes in the end only goes against the basic premise of social justice greatly upheld in any democratic country. The decline of the largest part of the population pertains not only in their number but more specifically to their power as the primary voice of a nation. True is the notion of the loud minority and the silent majority if the welfare of the greatest strata in the economic sphere of a nation is not protected with their rights and their capacity to contribute to the economic development of the state. The availability of jobs is not restricted to this point singular point alone. They must be quality jobs that the middle class may reinforce their role as competent members of society and realize their worth deviating from unemployment and underemployment. The empowering of the middle class enriches not only their financial capabilities and career growth but also their general disposition that will all redound to the organizations they work for. Because “In the end, most companies’ performances are based on the quality of their employees” (Strobel and Peterson 11) and what is the backbone of the United States’ economy if not a collection of iconic brands patronized worldwide. Bibliography Appelbaum, Eileen. “Report Gives New Insight in the Decline of the Middle Class.” U.S. News. N.p., 25 Aug. 2012. Web. 18 Apr. 2013. Gersten, Ben. “Middle Class Decline Under Obama Shown in 5 Charts.” Money Morning. N.p., 22 Jan. 2013. Web. 18 Apr. 2013. Kornblum, William. Sociology in a Changing World. 9th ed. Belmont, CA: Wadsworth Cengage Learning, 2008. Google Books. Web. 18 Apr. 2013. Strobel, Frederick R., and Wallace C. Peterson. The Coming Class War and How to Avoid It: Rebuilding the American Middle Class. New York: M.E. Sharpe, 1999. Google Books. Web. 18 Apr. 2013. Tabernise, Sabrina. “Middle-Class Areas Shrink as Income Gap Grows, New Report Finds.”New York Times. N.p., 15 Nov. 2011. Web. 18 Apr. 2013. Read More