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Middle Class and Economy

[May 29, 2008.]

 

As the state of the economy declines the effects are different for each consumer. Overall, the Middle class seems to be carrying the burden of the current stress worse than their Upper Class counterparts.

A recent reports shows that much of the middle class feels pessimistic in concerns to the state of the economy and their own financial growth. Many believe that this is due in large part to the current mortgage crisis and credit crunch.

Paul Taylor, director of Pew's Social and Demographic Trends who directed the study believes that the Middle Class is bearing the brunt of the current economic problems since the middle class "...tends to borrow more heavily against their homes to support their lifestyles." Of those interviewed over 30% claimed to have slid backwards financially when compared to their situation five years ago. The study goes on to state that most of the Middle Class studied felt that money was tight and 10% were having trouble receiving medical care that is affordable.

Most of these problems, experts believe, can be traced back to the current weakening of the economy. As the job markets slows and wages decrease more and more Middle Class people are finding it harder and harder to have enough money to pay for groceries, utilities, and payments including mortgages and credit cards. Lay offs are effecting the Middle Class significantly which is causing more families to fall into default.

While the current back slide of the economy is to blame, many believe that the Middle Class has helped to contribute to their problem by wishing to keep up appearances rather then frugal spending. Some see the current state of their finances as a hard lesson to learn about proper financing.

Certainly, many groups of the American populace are facing severe financial hardships in these times. The Middle Class is just one of these groups feeling the crunch in the places that it hurts the most.

 

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