Winners and Losers in the American Capitalistic Economy: A Primer, Hardcover/W. Sherman Rogers

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Contributor(s):Author: W. Sherman Rogers WINNERS AND LOSERS IN THE AMERICAN CAPITALISTIC ECONOMY: A PRIMER Economists generally agree that the new global economy has raised living standards for people around the world. But they also acknowledge that it has suppressed the incomes of low-skilled workers in rich countries such as the United States. Indeed, some economists blame income inequality for the rise of the terrorist organization ISIS and for the increase in suicides among middle class white Americans. And the diminishing economic status of the American middle class is fueling voter unrest during the 2016 presidential primaries. These issues--propelled by arguments concerning the appropriate role of government in providing a remedy--will undoubtedly continue well beyond the 2016 presidential elections. Recent studies indicate that the income of the American middle class is shrinking at a faster rate than that of Americans in the lower income brackets. These studies indicate that an increasing number of people in the middle class are falling into the ranks of the poor. On the other hand, Americans in the higher income brackets are experiencing a continued increase in their incomes while their numbers edge upwards in the general population. For example, in 1971 approximately 61 percent of adults comprised the middle class. By 2014, however, the percentage of persons comprising the middle class had dropped to 50 percent of the population. Low income Americans, on the other hand, grew from 25 percent to 29 percent of the population as more persons in the middle class joined the ranks of the poor. In contrast, the percentage of Americans in the highest income brackets witnessed an increase in their percentage of the population from 14 percent to 21 percent. Accordingly, America is witnessing the hollowing out of the great American middle class. These and many related issues involve a basic understanding of economics and how the American capitalistic economic system o