What is a definition of poverty that is understood as a nation of people living on less than the high-normal income. This concept is widely used in marketing and even business. The poor are often characterized as the “working poor”. This label is one of the most important tools for understanding the differences between the poor and the rich. From a socioeconomic point of view, it is better to look at the gaps between the poor and the rich. This is something that business and labor activities are designed to eliminate. Another thing that high society is designed to combat: inequality, injustice, and deprivations. At the same time, the middle class is the society’s reserve of income. Most of the social improvements have been made in the process of constant qualitative and quantitative growth. In other words, the middle class is a stabilizer of social change.
There are many theories of economic inequality, and, of course, in the theory of economic growth, the middle class is one of the most important. However, there is no doubt that the middle class gets its name due to place in the social structure of society. In our time, at least, it is important to mention in any guide for poverty essay that the middle class got its name due to place in the social hierarchy, as a group of people with an average income.
The status of the middle class in society has always been important. As the accumulated labor force becomes more valuable, the social status of representatives of the middle class changes. In history, it was the strongest social group, and, in the spheres of economic activity, it is difficult to imagine its existence without it. In the minds of many Americans, it meant and means equality of opportunities in the social structure of society.
But, until the middle class became a part of the social structure of society, economic inequality was not experienced by the lower classes. In the 1890s, it began to assert itself. The economic imbalance between the two classes increased. And this is what you should state in any essay on poverty.
The era of the middle class in the United States was characterized by the following transformation of the overall social process: the labor of the middle class replaced the labor of the low class. When the labor of the middle class replaced the services of the poor, the upper class began to perform the functions of the dominant social role.
Explain to the readers of the essay on the economic growth and income inequality in the United States that, in the 1890s, the upper and middle classes constitute a solid majority (two main ways of economic growth, and the percentage of people beyond the middle class). At the same time, the “silent” participation of the lower class in economic activity was overwhelmingly marked by the presence of material differences between the two classes.
The main economic change in the 1890s was the transformation of the product market, which, in turn, led to the considerable strengthening of the financial and entrepreneurial activity of the lower class. The proportions of the middle class have steadily increased. In the 1890s, the upper class constituted nearly 60% of the US population, and the middle class – only 40%. In the early 1900s, the percentage of the middle class in the United States was lower than in England and France.
The transition to market economy in the 1890s was made during the period from which the middle class appeared. After all, the success of the market is determined by the actions of entrepreneurs. Therefore, it was not an exaggeration to say that the middle class has achieved success in the market just in the name of the “industrial revolution”.
A characteristic feature of the modern labor market is the asymmetry of the shape of the relationship between the demand for and the supply of goods and services. In the era of globalization, the supply of goods and services is determined by the need in the countries of integration.
The second half of the twentieth century was marked by the gradual decline in the importance of the world economy. The world is a Gatsby Effect – a phenomenon referring to how the society is interconnected. The relation between the population and the resources limit is violated. The income of the middle class is lower than in the period of industrial revolution.
The Gatsby Effect is manifested, in the terms of the imbalance of the population’s social status. In the process of increase in the share of the labor force employed in industry, the percentage of people employed in agriculture is lower than in industrial. The share of the urban population is lower than in the rural areas. The lower social strata has reduced the amount of consumer goods and services, has reduced the number of social contacts.
In the era of globalization, the flow of consumer goods and services tends to have the reverse effect: the share of the consumer goods is lower, the share of the non-profit organizations is higher.