Question

Explain the middle class phenomenon.

Answer 1

the middle class squeeze is the situation where increases the wages fail to keep up with inflation or middle income earners leading to a relative decline in real wages while the same time the phenomenon fail to have similar effect on the top wages earners

Answer 2

According to the financial status, the population of a nation is divided into three major categories;

1) Rich.

2) Middle Class.

3) Poor.

Now,a major portion of the population is always covered by the middle class people.

The annual earnings of a middle class family is below the earnings of a rich person and is above the earnings of a poor person.

Which means, their financial status belongs to a middle place in the total national economy. And that's why they are considered as the middle class population.

The national economy is heavily dependent of this middle class population.