The Shrinking Middle Class
As I was sitting in the parking lot of the gas station recently, I was reading the news feed on my "smart phone". It was an interesting article that covered many topics related to current economic conditions. I later went back to further analyze the article and could not find it.
I learned several things from this article. In the past, the middle class was the majority in the USA and now they are not. In addition, the wage rates have increased very little in the last 50 years but the costs of living expenses such as health care, housing etc have increased at a much greater rate than the wages.
Then the article discussed how the middle class has too much debt and that they need to work on getting out of debt and learn how to invest their money. Although I am not an expert in anything, I would like to know how the authors think the middle class is going to get out of debt and "invest" when they haven't had a wage rate increase in 50 years? And in addition to the basic living expenses increasing at a higher rate than wages, in today's society there are new expenses related to cell phones, internet, and TV, etc.
Maybe the middle class would have less debt and invest more if the costs of living weren't so grossly inflated. If the companies aren't spending their money on wages, what are they spending their money on to justify the high costs that are being passed on to consumers?