What Can Be Done About It
The American middle class was once the backbone of the nation’s economy. They provided millions with a means of achieving stability and prosperity.
However, in recent years, it has been steadily becoming worse and more disruptive. For example, wages have stagnated, costs of living have skyrocketed, and economic policies have significantly increased that only benefit the nation’s wealthy. All of these factors have resulted in a shrinking middle class. This exacerbated inequality and put the country on the verge of economic collapse and downfall.
The average U.S. employee’s wages have barely changed, while housing, healthcare, education, and childcare costs have risen dramatically. The same goes for the purchasing power of middle-class families. It has been steadily eroded, making it harder to save or invest.
Even stable and well-paying jobs with benefits are becoming increasingly rare. Many companies and corporations in the United States force their employees into contract-based, gig-economy jobs with no healthcare, retirement plans, or job security. While this setup benefits corporations that avoid paying benefits, it leaves millions of middle—and lower-class workers vulnerable to financial instability.
Automation and outsourcing to countries with lower labor costs have also harmed the American workforce. For example, manufacturing has been decimated, and without strong retraining programs or alternative industries, many workers are left behind.
While labor unions played a critical role in securing fair wages and benefits for workers, decades of corporate lobbying and anti-union policies have weakened their influence and control. This has led to declining wages, poor working conditions, and less bargaining power for employees.
Instead of helping the poor and middle class, the tax code has been rewritten to benefit corporations and the ultra-rich. Wealthy individuals and companies use loopholes to pay little to no taxes. Middle-class families bear the brunt of the burden. The 2017 tax cuts, for example, disproportionately benefited the top 1%, increasing the wealth gap further.
What Can Be Done to Restore the Middle Class?
Raise the Minimum Wage: A higher minimum wage ensures that workers earn enough to support themselves and their families. Raising it to at least $15 per hour, adjusted for inflation, would lift millions out of poverty and stimulate the economy.
Strengthen Workers’ Rights and Unions: Protecting and expanding labor unions can help workers negotiate better pay and benefits. Policies that prevent corporations from union-busting and penalizing workers for organizing must be enforced.
Invest in Affordable Education and Job Training: College and vocational training should be affordable and accessible. In contrast, free community college programs and retraining initiatives can help workers prepare for new job markets.
Implement Progressive Taxation: The ultra-rich and corporations must pay their fair share. Closing tax loopholes, introducing wealth taxes, and repealing regressive tax cuts can fund essential services that benefit everyone.
Expand Social Safety Nets: Strengthening healthcare access, providing universal childcare, and improving Social Security benefits can prevent families from falling into poverty due to unforeseen circumstances.
In the end, the decline of the middle class is not a surprise. It is the result of policy choices that can be reversed in favor of the people and the country. For those who are interested in learning more and want to find a plausible solution to this issue, we recommend reading Private Affluence and Public Squalor: Social Injustice and Economic Misery in America.
This book explores the core of the American socio-economic landscape. It questions whether the nation’s foundational values are eroding the very fabric of the American Dream. Through a series of pointed inquiries, Nevins prompts us to reflect on our collective responsibilities as citizens, the intended purpose of government, the role of private enterprise, the true meaning of equal opportunity, and the necessity of regulating economic concerns for the public good. He argues that the answers to these questions reveal the values that shape our participation in America’s political and economic affairs. Critically, the book contends that the increasing diminishment of government’s role in the economy, coupled with the triumph of an unregulated market, has come at the expense of shared civic values.
Nevins’ analysis suggests that the pursuit of private affluence has led to a state of public squalor, highlighting the social injustice and economic misery that should not be neglected at any cost.
Get your copy on Amazon: https://www.amazon.com/dp/B0CHL9N39B.