How Does The Middle Class Affect The Economy

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Economic Essay The middle class has no defined group of people. Most say that it includes people who earn a total income of $200,000 or less, but this would only leave 3% as not middle class. Others say that the middle class can range from those that have a yearly income of $20,000 to $100,000. Whatever the case may be, there is no doubt that the economic recession has hit everyone’s wallet hard. The middle classes’ struggle throughout 2007 to 2009 was a hard one that has affected and continues to affect society today. A recession is characterized by a drop in production, employment, investment spending, incomes, and business profit. The most recent recession had seen almost 5 million…show more content…
This did little to help improve the economy but it did lead to the period of recovery in which we are in today. This has been an especially important time for society. Spending and consumerism has increased and the unemployment isn’t what it used to be almost 2 years ago. Although there is speculation as to another recession, there is no need to worry of government spending remains constant and tax cuts are issued. The recession of 2007 and 2009 has affected everyone, but mostly middle class people are the ones who are hit the hardest when it comes to economic troubles. Oil prices and inflation of prices in other markets had affected the middle class’ confidence in product consumption. With less private spending, an economy cannot thrive. That is why it was important that the tax cuts were issued to help increase this spending. If people spend more then more jobs are created and business investments are made to further help increase total GDP. Although the effects may not seem immediate, recovery is slow but
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