Topic > The Great American Divide - 1346

In the October 10, 2011 issue of Time, there is a feature called "The Great American Divide" that reports on money: who has it, who is spending it on what, and how what Americans think about it. This feature also signals something worrying, namely how the gap between rich and poor is once again widening (Sachs, 2011). This article discusses changes in spending, changes in monetary control, and the struggle over how to deal with the great monetary crisis facing America and Europe. This feature brings together how GDP, unemployment rates, consumer consumption, and prices influence this era of volatility and shrinking middle class (Foroohar, 2011). This characteristic is also reflected in inflation, economic growth, political stability in emerging markets and even taxes. The answer to solving this wealth imbalance and struggling economy may be found through government action, but will it be too late? Era of Volatility This feature begins with a poem by WB Yeats titled “The Second Coming.” It is a dark poem that applies well to the shrinking middle class, failing markets, and growing arguments among presidential candidates (Foroohar, 2011). A “double dip” recession is occurring globally (Foroohar, p. 28). Recession is defined as “a period of declining real incomes and rising unemployment” (Mankiw, 2012, p. 423). Certainly this principle applies to the American economy, where jobs are being moved overseas at an alarming rate. Americans might take comfort in the fact that the economic problems currently being experienced are also being experienced by other countries around the world; if that was comforting. It has been estimated and confirmed that US GDP will grow by less than 2% this year…half of paper…or college funds to pay the bills (Time). Even more worrying is that 13% say they have suffered from hunger because they cannot afford food, 7% have lost their home (Time). The number of people who don't believe their children will be able to live the American dream has increased by almost 10% (Time). America is experiencing enormous class disparity right now. Works Cited Foroohar, R. (2011). A new era of volatility. Time. 178(14). P. 28. Gandel, S. (2011). Shopping: the rich and the others. Time. 178(14). P. 39. Gandel, S. (2011). What we spend in a month. Time. 178(14). Sal. 34-35.Mankiw, N. G. (2012). Principles of Macroeconomics (6th ed.). Mason, OH: Cengage.Sachs, J.D. (2011). Why America must revive its middle class. Time. 178(14). Sal. 30-32.Time. (2011). How we spent... the time. 178(14). P. 32.Now. (2011). Money survey. Time. 178(14). P. 29.