While this is not good news, it is something that must be looked at. Not only is the economic equality destroying the middle class, it is also destroying the businesses that cater to them. In a another possibly related article I read over the weekend, the retailers that serve the teenager are also getting crushed out there. At the same time, the retailers that serve the higher end customers are thriving. These are the economic ripples out there that are affecting so many people out there today. Right now the affluent people out there are propelling the spending out there that is driving the economy. But this cannot continue forever and it will be impossible to achieve growth or a real recovery with so many people being left behind. There are no solutions offered here, just a reporting of the facts referencing many companies that are feeling the pain out there now. But how does this get changed? It is not like flipping a light switch, that would be too easy. It is a chain of things that go people/jobs, spending, retailers, investors and it is more complex that it looks. Because not everyone is struggling and that can be seen with the profits and expansion taking place in companies that cater to that upper class demographic. Sadly I am afraid that there are not any real answers out there. We will see what the effect is of the “Promise Zones”, and the new push to hire the long term unemployed, and some other initiatives out there but right now this is a sinking ship that needs a captain. 2016 is calling and it can’t get here soon enough. Not that everything will be OK then but we need some new ideas and leadership to come up with more ways to improve the situation.
The Middle Class Is Steadily Eroding. Just Ask the Business World.
Orin Rosenfeld
President
Rosenfeld Realty Advisors
9858 Glades Rd. Suite 209
Boca Raton, FL 33434
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