Why The Middle Class Exists

Why does the middle class even exist in the first place?
~

Got a ""why"" you want answered? Give us your questions here:

[EchosTackyTiki]

This guy is smarter than 99% of people in government.

[NotThereJustGone]

The lesson here is that not all deflation is the same. Deflation driven by higher productivity is good. Deflation driven by collapsing demand is bad.

[firstcynic]

Rephrasing what he said.

Imagine technology has cut your material, production and distribution costs by half. Then you give 25% of that savings back to the consumer as lower prices and 25% to your employees as higher wages. Result, everybody gets richer and enjoys your products more.

[barbarakrans]

Now, at 74 years old, I am shopping like I did in my early 20s. I am buying a lot of canned tuna, Spam, hamburger helper, Ramen noodles, etc. I survived it then but it sure sucks now. Just a few months ago I wanted a head of lettuce. The head of lettuce was $2 and it sat small in the palm of my hand. I even took a picture of it because I could not believe it. I have even thought about going through the food bank line down at the church. I know it will take a while before things turn around. It should have never gotten this bad in the first place.

[tawon]

The is the longest short I have ever seen! And I ain’t mad about it 🙏

[terihall]

We MUST be SELF SUFFICIENT again. From industrial growth, to farming. GROW BABY GROW!!❤

[BillyWyatt-qm]

I am ready for deflation. Retired and feeling the pinch. I remember as a kid begging mom to bring home some sliced white bread, it was a treat for us. Sure miss those days!

[CHARLES-unqx]

This is a priceless history lesson. Thank you for teaching me this. If you ever run for president, YOU have my vote.
Good day, Sir 👍

[supermax]

You discussed a topic that would take 10 to 30 minutes into a 3-minute video. That's whats amazing

[danielcobia]

That just cements my thought that avoiding deflation at all costs is stupid.

[robertmiller]

Subsistence farming is now less than 0.001% . We grow or trap & fish all that I eat except coffee . We sell the surplus vegetables at the farmers market .

[hollydayrobert]

A lot of the middle class can’t afford Obamacare and aren’t eligible for cheap or free health insurance. An HSA is 10 times higher now for my family than the year before Obamacare started.

[sem]

It was the deflation of wages that really hurt in the Great Depression. Wages go by supply and demand. With so many people looking for work, large businesses dropped thier wages, and people who were working had less to spend.

[PatrickLaney]

That man understands economics. I felt like I heard MILTON FRIEDMAN 🎉❤

[chrisferrell]

In 1990 I baught a VHS player for $450. 20 years later you could buy 1 for $20 . My life got better. The economy got better.

[ChristopherStaton-el]

He just outlined what my entire my entire class figured out when we were in 4th grade and then our social studies teacher told us we were wrong and that it can only cause a depression

[MarkStockman-bj]

The middle class depends on one thing and one thing only: Workers having that "little bit extra" left over after they meet their needs, to spend on their wants. Our entire consumer and service economy depends on that.
What we're seeing right now is what happens when workers have little to no disposable income. This hurts businesses, more people are laid off, there are fewer consumers, and the entire economy collapses like a house of cards.

[dclomg]

Deflation messes over stock markets. It leads to holding cash. This sinks businesses. Many things led to a middle class. Deflation was a very small part.

[ScottClark-qr]

Father, soldier and statesman.
Great explanation. This guy is solid and i hope he continues.

[geoffreyrommel]

We should distinguish between deflation and falling prices. Strictly speaking, deflation occurs when the money supply contracts (unusual, but that did occur during the Great Depression). That isn't necessarily bad, but it can be. Falling prices can occur because of greater efficiency and productivity, increase in supply, or decrease in demand. Those are nothing to be concerned about; they all happen constantly in a dynamic economy.