Very few political commentators contest the fact that a stable and growing middle class is an indispensable component of a healthy nation. The following paraphrased commentary from a Chinese website articulately exposes the unpleasant social and economic consequences of a shrinking middle class.
Failure to nurture and grow a middle class
The history of modern states indicates that the middle class is the cornerstone of social stability and prosperity.(could use more concrete specific examples here illustrating the importance of stable middle class) But certain conditions need to be created to help catalyze middle class growth: the middle class should be the mainstay of class structure, and the government needs to work to ensure the growth of the middle class through adjusting policies concerning income, housing and social security. In the last decade, benefiting from the economic boom, the sheer number of middle class people increased. However, the growth rate lags far behind general economic growth rates, as a result of the lack of any mechanism to nurture the middle class.
With regards to income distribution, reform has stagnated, resulting in an ever-increasing gap between rich and poor(Also a Huge problem in United States). The path to the middle class is becoming even bumpier for low-income households. High housing prices have reduced disposable income making homeowners prisoners in their own domicile , putting middle-class living standards beyond the reach of many. Bearish stock markets have partially depleted people’s savings and denied them the chance of getting acceptable returns on their investments. These are examples of just some areas where government intervention might have helped.