Thanks to the recession, the proverbial gap between the rich and the poor has widened considerably. One of the things that has made the American Dream possible is the strong middle class. However, the middle and lower classes have been left floundering by the recession.
Census figures revealed that the wealthiest Americans (10% of the population) earned a 11.4 times more than those living almost at the poverty level. Even if it’s just a rise of 0.2 times from 2007, that is still an ratio increase that clearly shows the disparity between earning capacities.
While income declined across all social classes, the middle and lower classes saw a more significant decrease compared to the income drops for the rich ones.
Unemployment and home foreclosures are the ones to blame for this trend. The recession left many middle class white collar Americans jobless and homeless as markets fell square on their asses.
Many Americans who were more comfortable spending in previous years aren’t as comfortable now as austerity measures sank in to the general consciousness.
Source: MSNBC
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