Economics Article

Posted: April 26, 2017

The article Middle-Income Jobs Finally Show Signs of a Rebound by Nelson Schwartz explores the rising trend of middle-income group in the United States. According to Schwartz (2016), the economy is now making efforts to increase middle-income jobs for the population. The article indicates that between 2013 and 2015, over 2.3 million employers have joined the middle-income earnings that range from $30,000 to $60,000 annually (Schwartz, 2016). The New York Fed president, William Dudley, explains that the rising in middle-income earners will soon outgrow the numbers of high and low wage earners nationwide. The increasing trend is confirmed in the New York City where the middle-wage jobs have risen by 179,000 between 2010 and 2013 (Schwartz, 2016). This positive change is associated with the shift of employees’ attitude to technology instead of salary.

In order for this trend to continue over the coming years, there are changes that the national and local governments should consider while preparing the fiscal budget. It is important that the congress allocates more funds to restore more investment on higher education; this will enable middle income families to afford the competitive federal grant programs that encourage postsecondary education completion (Erickson, 2014). Moreover, the budget should also consider investing more in the workforce education and development programs; expansion of the apprenticeship programs that create $1000 tax credit for every apprentice, and creation of such donations that offer grants for employers (Erickson, 2014). Government can also boost the aggregate employment demand by raising the deferral minimum wage to $10 per hour and lowering the eligibility criteria of workers from 25 to 21. These investments will increase savings and earnings of the middle and low income earners, thus, increasing the number of middle-wage jobs.

These amendments to the constitution will bring a lot of development to the nation. First, the resulting increase in the middle-income earners will improve the economic GDP of the nation; in such a way, more people will live above the poverty levels. Through the amendments, most youths from middle- and low-income families will be able to attain education. With the high education levels, the employment rate will continue to rise, thus improving the living standards of majority of the people. The current laws do not protect the rights of employees in private companies and low-skilled positions; they are paid less and work overtime. The amended constitution will, therefore, favor the semi and low skilled workers who are currently paid low wages.

One historical event that compares with the current economic situation is the recession experienced between 2007 and 2010. During this period, most companies made losses due to the lack of willingness for consumers to purchase goods. Prices of commodities also increased tremendously which finally led to destabilization of the stock market (Weissmann, 2012). The people who benefited the most were the wealthy since they continued to invest in the worst market conditions. However, the middle and low income earners were greatly affected; this included increased food prices, lack of jobs in the market, and decreased wages. According to Weissmann (2012), the median net worth of the households in the country dropped by 47%. The housing crisis during the same period affected most of the middle income families.

The impact of the historical economic event was reduced production at the workplace. With reduced earnings, most of the employees got demoralized since they could no longer afford to pay their bills as well as luxury lifestyle; this affected their work which in its turn affected the economic performance of the country. Individuals who lost their jobs either depended on homeless shelter services or became criminals in order to survive. Those who has families could no longer pay school fees for their children, and this increased the rate of school dropouts. Thus, the triple effect of the phenomenon was increased poverty and unemployment rate. The economic crisis affected the participation in recreational activities by the low and middle-income earners. Without disposable income, the available salary is used to pay for the basic needs; this prevents individuals from exploring recreational activities. This affected the tourism sector which remained relevant only to the wealthy and the tourists; thus reducing the revenue the country generated.

The economic article reveals an increasing trend of middle-wage jobs in the United States. This has created a lot of impacts to my work, home, and interest in recreation as well. At work, most employees whose salaries have increased are dedicated and enthusiastic towards their duties as a result of satisfaction. Most companies have also started to include scholarships for employees’ career advancements and recognition programs for motivation due to the increased revenue production; this does not only motivate employees, but also enhance their productivity and services to customers. In my case, my salary has been increased since a year ago, and this has made me increase my productivity at works. The employers have introduced other benefits including holiday trips and appreciation tokens for the best-performed employees; as a result, this makes me enthusiastic about my daily work.

At home life has become easier with the increasing middle-wage income. With my monthly salary, I can pay my own school fees for my part-time studies, and I am also able to pay my siblings’ fees. With advanced education, I will continue promoting my career and getting even a better job in future. I am also able to pay for my basic needs every month; there is no straining in paying the gas and electricity bills. The salary allows me to eat healthy foods including fruits and vegetables that are a little bit expensive compared to the fast foods. The raised salary allows my family to live in the future in a bigger house that can accommodate all of us comfortably; this has also increased my attitude towards my work.

The economic situation has also impacted my recreational activities daily. With the available income, I no longer have to work extra time on Saturdays and Sundays. Instead, I am able to spend my weekends on adventurous trips and sceneries. Every Saturday afternoon, I get time to go hiking with my friends. On Sundays in the evening, I go to the nearest park for boat riding and bird watching. I am also able to pay for other recreational activities; I have joined a gymnasium that is close to my home and trainings there help me to keep fit and healthy. I also go with my parents and siblings camping once a month; this activity promotes bonding among my family members. The increased wages will continue to better my life as well as that of other U.S citizens. 

Chat Now up