Politicians always like to use words like ‘middle class’ and ‘helping working families’ to win elections, and try to deceive voters on what their true agendas really are. And while U.S. President Barack Obama has tried to take credit for how he saved the economy and brought America back from the brink of the 2008 credit crisis, the fact of the matter is he has destroyed the middle class, and has dropped prosperity levels for tens of millions of Americans down to levels not seen in 50 years.
But in an ironic turn of the coin, one formerly pure Communist country has done just the opposite, and on Oct. 14 a new report from Credit Suisse shows that the Far Eastern powerhouse now has more of their people moving into the Middle Class than the U.S. does.
The US middle class, long considered a measure of prosperity, has for the first time been overtaken by China. A hundred and nine million people now make up China’s middle class compared to 92 million in the US, says the 2015 Credit Suisse Global Wealth Report.
While the middle class grew at a slower pace than wealth at the top end, the report forecasts Asia will see the greatest expansion.
“The middle class will continue to expand in emerging economies overall, with a lion’s share of that growth to occur in Asia,”said Credit Suisse CEO Tidjane Thiam in the report.
“As a result, we will see changing consumption patterns as well as societal changes as, historically, the middle class has acted as an agent of stability and prosperity,” he added. – Russia Today
Many factors of course need to be taken into consideration, such as the fact that China has over three times the population of the United States, but the most important indicator here is that workers in China are progressing upward due to a higher increase in wages, productivity, and living standards while those in the U.S. have declined as a result of Obama’s ‘bartender’ low wage recovery, and decreases in home ownership to levels not seen since the 1960’s.
Sadly, U.S. multi-national corporations are now basing more and more of their growth on sales to consumers in China, and less on sales to people in the United States since massive debt and slowdowns in consumer spending are signalling the decline in middle class discretionary spending. And with nearly three million good paying jobs lost under the Obama administration only to be replaced by low wage service industry ones, the distance between the growing middle class in China and the shrinking middle class in America will only get wider in the coming years.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.