Mircoeconomics - article response
Microeconomics
In the online New York Times article “The Problem With Too Many Millionaires” Chrystia Freeland addresses that the group of wealthy individuals are getting richer throughout time. This “the winner takes it all” phenomena that has been occurring over the past few decades, may put even more stress on the middle class in the upcoming years.
The article states that, “the rich are getting richer” as the World Wealth report explains there has been a rise of ten percent over the previous year for individuals with more than $1million to invest. Professor Krueger argues that reasons for this rise are due to technological changes, globalization and less emphasis on U.S. institutions that supported shared prosperity. On the other hand Professor Mankiw discusses that through “admirable entrepreneurs”, such as J.K. Rowling and Steve Jobs the middle class has become somewhat “richer”. Meaning, who else would’ve brought out these inventions and where would we be without them? Although, in this case, he doesn’t include individuals such as C.E.O’s who haven’t necessarily contributed to society but have gotten rich anyway. Mr Krueger argues that the main problem of the rich becoming richer is that it affects the middle class. The Global Wage Report points out that there hasn’t been any increase in the workers’ share nationally. Wages have not increased as much as labor productivity, meaning labor productivity has less little impact on wages. Furthermore, the article states that it will become harder for the individuals who don’t belong to the one percent to succeed.
There is much truth to this article. It is concerning how it has slowly become a struggle for the middle class to manage in today’s economy. Especially when it comes to middle class families who want to pay for their children’s higher education. For the one percent of millionaires, this may not be a problem. Their children or even they themselves can easily afford higher education. Of course, everyone
In the online New York Times article “The Problem With Too Many Millionaires” Chrystia Freeland addresses that the group of wealthy individuals are getting richer throughout time. This “the winner takes it all” phenomena that has been occurring over the past few decades, may put even more stress on the middle class in the upcoming years.
The article states that, “the rich are getting richer” as the World Wealth report explains there has been a rise of ten percent over the previous year for individuals with more than $1million to invest. Professor Krueger argues that reasons for this rise are due to technological changes, globalization and less emphasis on U.S. institutions that supported shared prosperity. On the other hand Professor Mankiw discusses that through “admirable entrepreneurs”, such as J.K. Rowling and Steve Jobs the middle class has become somewhat “richer”. Meaning, who else would’ve brought out these inventions and where would we be without them? Although, in this case, he doesn’t include individuals such as C.E.O’s who haven’t necessarily contributed to society but have gotten rich anyway. Mr Krueger argues that the main problem of the rich becoming richer is that it affects the middle class. The Global Wage Report points out that there hasn’t been any increase in the workers’ share nationally. Wages have not increased as much as labor productivity, meaning labor productivity has less little impact on wages. Furthermore, the article states that it will become harder for the individuals who don’t belong to the one percent to succeed.
There is much truth to this article. It is concerning how it has slowly become a struggle for the middle class to manage in today’s economy. Especially when it comes to middle class families who want to pay for their children’s higher education. For the one percent of millionaires, this may not be a problem. Their children or even they themselves can easily afford higher education. Of course, everyone