Middle Class America Feeling the Economic Squeeze

In: Business and Management

Submitted By scottyj0417
Words 1401
Pages 6
Middle Class America is Feeling the Pressures of Economic Distress
Larry S. Jordan
Excelsior College

Do you remember a time when gasoline was under $2.00 per gallon? I do and it was 2008 when it last occurred. Middle Class America is feeling the pressure of the recession. Economic growth has slowed down over the last decade and is improving only slightly in the last four years. In a time when the commodity prices are rising, and the cost of living is increasing, the one constant that stays the same is that the middle class income is not rising as fast as inflation. Middle Class America is diminishing with the rising costs of healthcare, stagnant wages vs. inflation, and the rise of unemployment. The rising costs of healthcare have escalated over the last 10 years significantly. Davidson (2014) reported that the fourth quarter last year was the fastest pace in health care spending in the last 10 years. The total spending on healthcare is expected to reach over 4 trillion dollars by the year 2021, according to Aetna Insurance. The reason this effects the middle class is that employers are requiring the employee to share in a larger portion of the insurance premiums, this is a change that is becoming popular with most companies. Collins (2008) reported that the proportion of adults spending 10% or more on their healthcare have more than doubled between 2001 and 2007, from 18 percent to 36 percent. One of the core beliefs is that the middle class income is not keeping up with inflation and the added cost of healthcare causes the middle class worker to make tough decisions around personal well-being and basic necessities. Medical spending the last three years has reduced due to the recession. Americans had to make tough decisions and cutting out healthcare and seeking treatment was one of those choices. The economy is starting to recover and with that Americans…...

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