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Leo Pacheco | Personal Development | Life Coach | Innovative Strategist

Solving the Shrinking Middle Class in America

October 10, 2016



Long before he entered politics, Donald Trump co-wrote a book with Robert Kiyosaki, "Why We Want You To Be Rich," after they saw how the economic climate is negatively impacting middle class American families.  In the book, they point out how the middle class is shrinking, forcing Americans to either become wealthy or slide into poverty.


Unfortunately, the crisis for middle class families is largely contributed to poor government policies and political rhetoric.  Combine that with a decline in education, joblessness, lack of financial literacy, and a growing number of people relying upon government-run resource programs, and soon the middle class will be virtually non-existent.


The key characteristic of all middle class Americans has been based on the notion that you work hard for what you get.  Your success is determined by the amount of time you invest in yourself, others, and your community.  The reward is living the American dream of home ownership, stability, and security.  However, all of that is currently threatened by modern philosophy and socialist ideas flooding our nation with false pretenses.


According to a 2015 study, Pew Research created the following chart, showing how much Americans need to earn in each state in order to fall within the Middle Class bracket.  Mind you this is not conclusive as there are several factors that determine where you fall in each income bracket, such as specific location, number of people in the household, and income before taxes.


However, if you want to know specifically if you fall in this category, CLICK HERE to fill out Pew's Middle Class Calculator.


What it boils down to is America's middle class is shrinking, and soon, the majority of the population will either be in poverty or among the wealthy.  While politicians would have you to believe that the wealthy are evil tycoons with self-centered ambitions, and don't pay their fair share of taxes, the reality is the world needs the wealthy.


The facts are the facts!  We need the wealthy!  The government needs the wealthy!  And, even the poor need the wealthy!


Think about it.  According to the IRS, in 2015, 85.6% of federal income taxes are paid by the top 25% of income earners (making $70K or more).  Those in the top 1% (making $389K or more) paid 35.1% of total federal income tax compared to everyone else who paid only 11.55% of the total federal income tax.


Despite claims the rich don't pay their fair share, the government's own reports negate that claim.  In fact, the rich are paying more than their fair share of taxes, while the majority of low-income families pay little to no income tax!  


And, who benefits from those tax-paying Americans?  Well, the list is too long to outline here, but frankly, EVERYONE benefits from tax-funded government programs to some degree, such as highway and road maintenance, public health or safety, emergency aid, national defense, etc.  


But, the majority benefit from government programs such as Medicare, Medicaid, welfare, and myriad others.  The world even benefits from American taxpayers - hence the billions of dollars paid to foreign governments in aid or relief programs, ransom payouts (yes, I went there), and a number of other contributions.


One thing we know for certain is that none of these programs are run well.  Any time the government becomes the provider of services, they usually screw it up and end up failing the very people who are intended to benefit from these programs.  Time and again, we hear of government corruption, political red tape bogging down resources, and a plethora of issues surrounding these programs.  The government is not a good resource to rely upon if you plan on surviving and thriving.


Granted there are many who benefit from these programs and may very well not survive without them.  However, compared to the number of non-government organizations (NGOs), churches, char