The Death of the Middle Class
I love capitalism and the idea that you can generate unlimited wealth. This is the reason why the U.S. is one of the richest countries in the world, with its GDP growth driven by consumer spending. Yet despite the ability to create wealth, the income gap between the rich and poor has been rising, which ultimately impacts consumer spending. In my view, this is an issue that needs to be addressed, because there is a societal need to help the less fortunate. Of course, paying higher taxes is a form of income distribution, but given the tax loopholes, the current system of taxes as a form of income distribution may need to be fixed.
This concept of income distribution in America and other industrialized countries is becoming a real problem, especially with the great recession that began in 2008. Lower income levels impact consumer spending and economic growth; therefore, lower income levels mean lower GDP growth and an extension of the current recession.