American Working Class And The Economy

Essay by PaperNerd ContributorUniversity, Bachelor's May 2001

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The American economy has been undergoing multiple changes, that in turn strongly affected the American working class. The first change to transpire is that corporation's profits began to lessen. This means that business owners had to change the way they did business through deindustrialization; which is the cutting back on manufacturing by moving factories over seas for the cheaper cost of labor. The next change that took place was an increase in labor costs. Wages and prices were raised, but the corporation could no longer pass the costs onto the consumers, which cut into their profit margin. Finally, the U.S. economy had to deal with the global competition, where companies would buy cheaper products from other countries. These changes were the major reasons for the decline in wages and the increase in income inequality.

The "Wage Squeeze"� has had a strong impact on the American Working Class. Twenty years ago, one parent could support a family of four; but in this new-found economic situation, both parents must work to support their family.

This decline in wages not only pinches workers and their immediate families, but it also sends tremors through entire communities. Where once families looked to their bigger and better futures, now the American working class is barely keeping afloat. Women are especially effected by the wage decrease. They are forced to leave their homes to help support the family. This raises concerns about who will raise the children, and take care of the household. The husband feels he is not living up to his role of supporting the family. There is a helpless feeling, and stress increases as they work for a better way of life.

The changes in the working class have caused a hatred towards others they blame for their situations. Part of this hatred...