When it comes to the “American Dream” and who qualifies for having it, both the middle and lower class citizens of America receive the short end if the stick. The small portion of financial opportunity in the first place puts middle and lower class citizens in a disadvantage. Starting off in a bad position in the economy only makes it harder for Americans in the lower classes to make something of themselves and their families, and unfortunately, this is the case for most. The recent changes to America’s economy make the “American Dream” seem more like a myth to middle and lower class citizens than a reality. The American Dream is more difficult for middle and lower class citizens to reach as taxes get raised, personal debt for lower class citizens’ increase, and good education disappears, making opportunity for them more scarcer.
The steady increase of taxes is one problem that makes it hard for the lower classes to become financially stable. The government claims that this action will help the unemployment rate in America decrease, but there is never any change. The problem with middle and lower class citizens obtaining stability in finance only gets worse. Paul Krugman states that, “In addition to imposing higher taxes on the rich, other advanced countries also impose higher taxes on the middle class, through both higher social insurance payments and value-added taxes in effect, national sales tax” (598). Obtaining a job would mean nothing if their regular minimum wage salary could not pay off the high taxes. Most of their income would be taken away from them, leaving the citizen with little to no money at all. Statistics show that the real income for the top 1 percent of households have tripled since 1979, compared to a rise of 50% for the bottom fifth and just 36% for those in the middle. Starting off with a small amount of income in the first place cannot help these middle and lower class citizens meet the expectations of high taxes. However, the government continually increases standard tax while personal wages for lower class citizens decrease.
The year of 2000 showed the national income flowing to workers was 63% but as of last year, that number fell to 57%. This fall was the equivalent to $750 billion lost in wages for middle and lower class citizens. In order to form perfect equality within the three classes, the government should decrease the amount of tax given to the middle and lower class of America. Krugman also said, “The nonpartisan Urban Brookings Joint Tax policy Center estimates that letting the bush tax cuts expire for the people with income two hundred thousand dollars would be worth about $140 billion a year starting in 2012”(595). Engaging in an action where tax is minimized will form balance in America and close the poverty gap.
Personal debt within the families of America is another reason why the lower classes find it so hard to reach the American Dream. Middle class citizens are expected to spend their earnings on items available for them. Most Americans in the middle class purchase things necessary for living and financial stability. A house or a car for example, is something that every middle class citizen should have of value, if they are productive in the economy. Even though they are able to purchase these items, they still struggle to completely pay them off. The large amount of money that a house or a car comes with causes middle class citizens to lose a lot of their earnings. Krugman mentions that, “It matters a great deal that millions of middle-class families buy houses they can’t afford, taking on more mortgage debt than they can safely handle, because they’re desperate to send their children to a good school- and intensifying inequality means that the desirable school districts are growing fewer in number, and more expensive to live in”(590). When middle class citizens only have enough money to keep themselves in the middle class, it is hard to buy other necessary items and support a family at the same time. Krugman says, “The proximate reason for this surge in bankruptcies was that families were taking on more debt- and this lead to moralistic pronouncements about people spending too much on luxuries they can’t afford” (590). Having a limit on how much earnings you gain and spend is practically the same as being a slave to the system. This stops middle class citizens from achieving their own American dream.
With the economy slowly falling into more debt, the opportunities for middle and lower class citizens become scarcer, taking away their chance of living the American dream. There are many problems that make it nearly impossible for the middle and lower class citizens of America to obtain the American dream. Some of these problems include the raise in taxes, the personal debt of middle and lower class citizens, and the opportunity of receiving a good education. All of these make it hard for non upper class citizens. Author Brandon King states that, “The lack of clear economic progress for lower and middle income families is in itself an important reason to seek a more equal distribution of income”. There must be a change or else in the near future, the American Dream will not exist in America’s economy.
WORKS CITED
Krugman, Paul. “Confronting Inequality.” They say/I say 2nd Ed. Ed. Gerald Graff, Cathy Birkenstein, Russel Dirst. New York, NY; W.W Norman & Co, 2012. 586-605
Reeves, Richard. “Equality, Opportunity, and the American Dream.” www.nationaljournal.com. National Group Inc. 20 August 2014. Web. 9 December 2014.
Thomas, Cal. “Is the American Dream Over?” They say/I say 2nd Ed. Ed. Gerald Graff, Cathy Birkenstien, Russel Dirst. New York, NY; W.W Norman & Co, 2012. 568-71
King, Brandon. “The American Dream: Dead, Alive, or on Hold?” They say/I say 2
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