2011.10.16

Why America Must Revive Its Middle Class

/Page 36-37 TIME October 10, 2011/

SignSpotting

• The income distribution structure in the U.S.―top 1% takes a quarter of all
• Why and how this situation has arisen―compering to the 1920s economy 
• What’s needed to fix the U.S. economy and make it survive in the world

Briefing

• In the U.S. industry, job outsourcing are squeezing workers with lower skills and education out of the labor market, while rich Americans get prosperity in the process. Also in the politics, the congress seats are dominated by wealthy Americans and they try to cut the tax even more, which may lead the economy to even more inequality. 
• The similar situation was observed in 1920s America. But the administration at that time had succeeded to reform the economy, confronting the great depression in the following year, while today’s governments has failed. They just blame the tax and regulation for killing job creation and fail to have long-term vision to revive the U.S. economy. 
• In order to fix the economy, America needs to get back competition in its industry. All it needs is investments in education, infrastructure, and human capital, because poor competition was caused by the absence of higher skills for higher wages. This program will not make difference shortly but steadily push up the standard of middle class worker’s skill into the world competition level. 

Opinion

Japan can not consider this American issue as none of its business. So far it has well-educated manufacturer and high technology industry, which keeps robust position for Japan in the world’s manufacturing system. But recently more and more children fail to get interested in math and science in the elementary process of education. Moreover, past education reform aimed at pupil’s characteristic has decreased the standard of literacy and scientific understanding. This problem can cause the same situation the U.S. are facing now in the following some decades. Now the symptom seems to appear in the middle class loosing its number in the population. We need reform now.