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America has always relied on capitalism in establishing itself as a leading world economic power over the past century. The major element is the ability and freedom of each and every American to to achieve personal wealth through hard word and ability. Over the past thirty years, however, there has been a growing economic divide widening between the "haves" and "have nots". The economic group that has suffered the most has been the middle class. Many of its members perform critical roles in society, such as teachers, nurses, policemen, firemen, construction workers, et cetera. The inability of these Americans to survive economically has been a major factor in our most recent economic downturn.
In order for the major players of capitalism to succeed, a stable middle class is necessary. They purchase the goods and services sold by both large and small businesses. They are no longer consuming these products at the same rate, which has been reflected by our nation's declining gross national product over the past year. Our society would be left in total chaos without the dedicated members of law enforcement, education, and health care. These people are not driven to do their jobs by the lure of great financial wealth. Pure capitalism doesn't provide the answer for the middle class.
History has shown that America's greatest economic periods existed when our manufacturing base was thriving, and the middle class contained millions of blue and white collar workers. During the 1950's and 1960's, one income families were able to purchase homes and new cars. Today, however, most of the middle class, blue-collar manufacturing jobs have disappeared, while the white collar jobs have slowly declined. Few families can maintain an acceptable standard of living on one income. Even the more lucrative jobs in the financial sector have taken a hit during this recession. With the middle class shrinking and the working poor becoming poorer, our nation's economic difficulties continue to worsen.
The answer isn't to apply the "Robin Hood Doctrine": "Take from the rich and give to the poor". Those who have benefitted most from capitalism, however, need to invest in American workers, instead of utilizing cheap labor from other countries. Our manufacturing base needs to be re-established. A larger middle class, and a shrinking poverty class will increase the market for goods and services, and create tax revenue for the provision of necessary services that employ more members of the middle class.
Learn more about this author, Leslie Schwab.
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