Social Challenges Facing The Middle And Low Income Classes

while average American chief executive officer earned 42 times as much as the low-level employees, currently the top managers make 531 times higher than the average workers. The class struggles that Marx described in his economic theories played a critical role in widening the income gap (Royce, 2015). The existing economic policies such as free trade mean that the high class can quickly supply their products throughout the world. On the other hand, the low-income households mainly benefit from the increased competition that forces the local firms to reduce the prices for their products. However, such advantages do not impact directly on the disadvantaged families’ wealth stators.

Solutions to the Social Challenges facing the Middle and Low-Income Classes

Marx believed that strategies such as progressive taxes, public education and comprehensive economic policies can reduce the social injustices (Martin and Pimentel, 2014). The U.S. policy makers also apply similar measures to curb various challenges facing its disadvantaged populations. For example, it introduced social security and anti-poverty programs that include tax refunds, food stamps, unemployment payments and other financial support services. According to CBPP (2016) policies such as earned income tax credit and child, tax enables more than 27 million low-income families to access food, adequate housing facilities, and high-quality education and health care. The economic incentives further encourage the low paid workers to enroll in higher education programs that in turn increase their chances of rising to higher economic and social positions.

However, various dysfunctions and inefficiencies characterizing the American economic systems result in the embezzlement of the...

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...inues to grow not only because of the poor corporate governance styles but also due to the concerned authorities’ reluctance to solve the crisis. The elite families have created strong networks with influential personalities from across the world. This form of modern slavery means the underprivileged families cannot compete favorably with the elite families for the limited economic and social opportunities. Like the proletariat of the 19th century, the modern low-income American families lack capital, land and adequate entrepreneurial skills to start their businesses. As a result, most of these bottom 25% of the income distribution are always willing to accept the low paying jobs. Whereas the chief executive officers, managing directors and major shareholders create policies that allow them to gain lucrative compensation packages, dividends and other profit shares.