Why the middle class is failing

Humpy said:
The developed countries are trying to grapple with many problems and a major one is the decline of the middle class. The reasons are :-
1. The Capitalist system is not geared to the preservation of any particular class. The company owners are not interested in the steady middle class contribution. They are interested in profits and that means lowering costs. For instance many safe jobs such as bank managers have been shelved to save on wages. Any difficult problems are dealt with by centralised Head Office.
2. The huge rise in education has made the young job seekers much more desirable than their fathers. They have energy, ambition and an education of new ideas. But what is really the killer positive is that they are ready and willing to accept lower wages just to get started. The company bosses save money on their wages and get all the benefits above . Its a no brainer.
3. AI and automation. Much cheaper to run and works 24/7 without complaint.
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your response is one sided and in sync with your leftist philosophy.
"2. The huge rise in education has made the young job seekers much more desirable than their fathers."
can you substantiate this premise?
 
I think another issue for the middle class is the rise of consumption and credit. We want our kids to have what we didn't so we don't think twice about buying them a $500 phone. With monthly payments, everything becomes affordable even that 70k truck we saw on tv.
 
luisHK said:
Isn t it usually a calculation, the middle class are the people banking in around the median or average income, say from 50% below to 100 above ?
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I like your definition. I think in the US the problem is those in the middle just can no longer afford all the expected middle class life style. The question is what is the "expected" middle class life style? A house, two car, vacation in Europe every year....? Here is an article about why current generation is having difficulty making it:

http://www.cnbc.com/2017/05/16/mill...to-stop-buying-avocados-to-afford-a-home.html

It is of course an over simplification but the general population in the US no longer save and sacrifice to build a better future for themselves.
 
the fundamental problem is cost of doing business in the US getting more expensive. All areas of US econ have grown to the max, there's no room for growth anymore. then Capital d have to go else where to find profit.
We'd need WW3 to thin the herd :) it's cycle of life (either by artificial means or by natural cause).
 
HeSaidSheSaid said:
the fundamental problem is cost of doing business in the US getting more expensive. All areas of US econ have grown to the max, there's no room for growth anymore. then Capital d have to go else where to find profit.
We'd need WW3 to thin the herd :) it's cycle of life (either by artificial means or by natural cause).
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We don't yet know what the US economy would be in a free market. Never had it. Now less than ever.
 
Of course Ronald could on a whim banish technology as the work of the devil or something. That would mean jobs for all but life like the Amish.
Well he is daft enough !
 
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