Current Event: Policies for the Middle-Class Income Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

The article analyzes the effect of government policies on the middle-class income. There are some policies that the government had laid down to ensure that the real income of individual workers in the United States of America has gone up. These policies that were introduced by the Obama administration had very little effect on the middle class (Barro 2). The article, therefore, details the role of politics in economic growth and the effect of economic growth of the middle class.

In the economy, jobs provided by the government are limited. It is the private sector that controls the job market in the country. Therefore, the policies set by the government on minimum wage have to be rechecked by the private employers. Considering this fact, private employers usually pay higher than the government-recommended amount (Barro 3). If the recommendation were meant to address the plight of employees, in general, the middle-class workers would not be affected. It is only through hard work that will lead to their improved salaries as private investors are mostly revenue-oriented. Therefore, as the profit increases, the amount paid to the worker’s increases.

Policies that have been developed by President Obama have very little effect on the middle-class economy. For example, the policies on taxation have been viewed as to reduce the middle-class tax burden by a small margin (Barro 4). In fact, the economist argues that Obama’s tax policy favors the lower class than the middle class. Considering this fact, the political administration is seen as not focused on the majority of the United States of America’s biggest population.

Some measures of production are seen as worthwhile in eradicating the middle-class economy as the Obama policies. The reduction of the cost of production may be favorable to the middle class in some ways. The best explanation that has been given is that the reduced factors of production such as tax levied on capital and fuel prices lead to a lower cost of production. The goods produced at a lower cost usually have an advantage over those produced elsewhere at a much higher cost. Since consumers have choices, they will go for cheap goods (Barro 5). The result of this offer is a high sales volume that translates to higher profits. High profits made by private firms, then lead to increased salaries for the middle-class families.

Secondly, when goods produced are offered for sale at a lower cost, the members of the family in the middle-class economy will spend less of their income. Their purchasing power is increased, and therefore they can buy more goods and services than when the commodities offered for sale are at higher prices. Assuming that their level of consumption is constant, the families will have a high percentage of their income made for savings. In economics, we always assume that savings are directly proportional to the investment (Barro 6). Therefore, the higher the savings, the greater the investment that the middle class makes. The resulting figure will be a higher economic growth for the middle-class economies.

Government policies are meant to improve the citizens’ standards of living. The government usually seeks to alleviate the poverty of her population. Obama’s policies have greatly been criticized as they focus on one group, the lower class. It is important to know that the status quo is real in our society. Efforts need to be made in lessening the gap between the poor and the rich. The purpose of Obama’s policies from the economic point of view is to alleviate poverty from the lower class. When this approach succeeds, then the United States will be the best place to live in the entire universe.

Works Cited

Barro, Josh. “What Is ‘Middle-Class Economics’?” 2015. New York Times. Web.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2022, January 25). Current Event: Policies for the Middle-Class Income. https://ivypanda.com/essays/current-event-policies-for-the-middle-class-income/

Work Cited

"Current Event: Policies for the Middle-Class Income." IvyPanda, 25 Jan. 2022, ivypanda.com/essays/current-event-policies-for-the-middle-class-income/.

References

IvyPanda. (2022) 'Current Event: Policies for the Middle-Class Income'. 25 January.

References

IvyPanda. 2022. "Current Event: Policies for the Middle-Class Income." January 25, 2022. https://ivypanda.com/essays/current-event-policies-for-the-middle-class-income/.

1. IvyPanda. "Current Event: Policies for the Middle-Class Income." January 25, 2022. https://ivypanda.com/essays/current-event-policies-for-the-middle-class-income/.


Bibliography


IvyPanda. "Current Event: Policies for the Middle-Class Income." January 25, 2022. https://ivypanda.com/essays/current-event-policies-for-the-middle-class-income/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1