Saturday, February 7, 2015

Why is the Middle Class Vanishing?

In nature, when there is a high degree of competition over available resources, the population tends to diverge giving rise to a few very large sized individuals and plenty of very small ones. This phenomenon observed in nature is paralleled in societies that experience increased competition. There tends to be a few individuals in the population that have grown filthy rich while the great majority of the population become very poor. The middle class tends to disappear in such situations. If, for any reason, competition over resources loosens up with time, a gradual naturalization of the wealth curve starts to take place and the middle class shows a second rising in the presence of such new conditions.