According to Sachs (2011), America was a large middle class country and without that strong middle class there is a huge gap between the rich and the poor. Sure it would be great to take money from the rich and hand it to the poor and create a single group social class system, but this is considered socialism and is frowned upon for many good reasons. The decline of the middle class in the United States of America has made it more difficult to provide healthcare, pension programs, and invest in the future. (Rand 2013) Many large companies outsource work to third world countries for cheap labor to keep the prices of their products lower. This hurts the middle class because fewer jobs are provided to Americans, which is one of the main reasons people fall into poverty. Society therefore suffers from a lack of jobs, increased healthcare and insufficient savings. The middle class copes with these symptoms by working longer in life, holding onto pensions longer, and using government benefits. According to Rand, the latest census data shows that the average American family has become poorer over the past decade (2013). It has also been shown that the middle class is further indebted due to declining property values. Homes purchased years ago are worth less than today. Without money in the middle class people buy fewer various products, consequently most products
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