Third Way Perspectives
Posts Tagged ‘middle class’
October 21st, 2013
Perhaps we underestimate ourselves. Five years after the Lehman collapse triggered the deepest recession in eight decades, the middle class may be solving the vexing problems of income inequality and stalled wages on its own.
Faced with unemployment and dim job prospects, Americans made one significant change that should alter their fortunes and those of the middle class for decades: they went back to school. During the recession, there has been a sharp surge in the number of Americans who are getting a college degree. Read the rest of this entry »
June 11th, 2013
Twenty years ago, American businesses flocked to China with vague but ambitious plans to sell its billion consumers everything from toasters to telephones. But in a market that had no meaningful middle class, they found few takers. In the years since, China has successfully tapped into foreign investment and know-how to build a powerful, export-oriented economy—and a rapidly expanding middle class—largely by selling to America’s middle class. Its success has stoked American concerns about trade deficits and the loss of middle-class jobs to low-cost foreign competition.
But China’s ongoing transformation points to a potentially different future: one in which America expands its exports, achieves fairer trade, creates good jobs, and strengthens the middle class—by increasingly selling to China’s burgeoning middle class.
March 27th, 2013
Our nation’s history is proof that manufacturing jobs lead to middle-class growth. At roughly the same time manufacturing’s share of the total workforce dropped from 20% to 9%, the middle class has shrunk from 61% of the U.S. population to 51%. While the U.S. manufacturing sector has recovered 500,000 jobs since early 2010, a major opportunity is surfacing in the clean energy sector. A $7 trillion clean energy market is developing around the world, and clean energy manufacturing provides an opportunity to renew and modernize our manufacturing sector.
The Obama Administration is already moving to help companies seize the clean energy opportunities. The Department of Energy is launching a new Clean Energy Manufacturing Initiative (CEMI), focused on growing American manufacturing of clean energy products. Led by Office of Energy Efficiency & Renewable Energy, the initiative includes modern analysis of the global clean energy manufacturing supply chain to inform the Department’s future funding decisions. This is a program that will empower companies to use our nation’s competitive advantages for their and America’s gain. It is ensuring our government is the most-well-informed government in the world and can help American companies out-compete the likes of China, South Korea, or Germany.
June 28th, 2012
The Supreme Court ruling on health care re-affirms the President’s goal of stable and secure coverage for the middle class and the nation. It is time for the Republicans to drop their fight against the law and join forces with Democrats against a common enemy: rising health care costs. Both parties should take full advantage of the key role that states play in health care, an important topic the Supreme Court also ruled on today.
Today’s ruling affects the expansion of health care coverage to the poor under Medicaid. As a quick refresher: the Affordable Care Act required states to expand coverage to all the poor under Medicaid. Today, one-third of the poor have no coverage under Medicaid, through a job, or any other source.
The Supreme Court affirmed the federal funding for that coverage, but said states should be free to choose whether to accept it for expanding Medicaid. From the start of the expansion in 2014 through 2016, federal funding covers 100 percent of the costs of expanding Medicaid, but after that, the states will start splitting the cost with the feds. The state’s costs are capped at 10% of the total, far less than their typical share, which averages 32% across the states.
What does this mean?
September 21st, 2011
The goal of our recent report “Incomplete: How Middle-Class Schools Aren’t Making the Grade” was to jumpstart a national conversation around the state of middle-class schools. Given the response, it looks like we’re off to a good start.
We’ve received a wide range of feedback from educators, policymakers, and thought leaders who share a common purpose—getting our kids ready to succeed in the 21st century. Since a portion of the response has focused on our definition of “middle-class” or our approach to school-by-school data, we wanted to take a moment to tackle some of the issues that have been raised.
It seems that the main point of contention that some have with our report has to do with how we define a middle-class school.
To sum up their argument, they find our use of eligibility statistics for free or reduced school lunch to be either arbitrary or too sweeping. Let us be clear: Our decision to use this criteria was a deliberate choice, grounded in established procedures and data.
With the current education reform debate almost entirely focused on low-income schools and students, we wanted to shed light on the schools in the middle that serve a majority of Americans. We paralleled the U.S. Department of Education’s definition of high poverty schools and districts as those with more than 75% of students qualifying for the National School Lunch Program (NSLP). Schools and districts with 25% or less of their students eligible for free or reduced lunch are the upper-end of the income spectrum. In essence, the middle two quartiles of schools are middle-class schools. Read the rest of this entry »