The Impact of Recession to Middle Class
The Impact of Recession to Middle Class – Today the recession is getting hard for people to live especially from the middle class and the lower class. There are about 37.3 million Americans were living in poverty in 2007. This means 12.5 percent of the population was living in poverty. The government defines poverty as an annual income of $21,203 or less for a family of four.
Today there are many people in US especially from the middle class get some difficulties in paying their bills. They also have to use their weekend to get more dollars just to stay alive. Can you imagine what happen to the lower class?
Rebecca Blank, a senior fellow at the Brookings Institution in Washington, said that poverty is going to go up from around 12.5 percent now by about half percentage point to 13 percent. The main driving factor is raising unemployment.
Some analysts said that the number of people living in poverty is set to increase as the economy not expected to recover before the second half of 2009 and the jobless rate forecast to top 9 percent by the end of the year.
Lisa Donner, Executive Director of the Half in Ten Campaign, an organization focusing on poverty in the U.S. capital, said that how many more people fall into poverty as this recession continues depends on what policy choices are made.
Some charity groups have reported an increase in the number of people using their services around the country.