The strength of the middle class has always been the pillar of the American economy and a vibrant middle glass took America to the top of the world, economically speaking. But why is the middle class shrinking? We have witnessed the worst decline with the middle class in history, since 2008. And things are not getting any better. Does it have anything to do with the "easy-money" policies created by the Federal Reserve to fix the "Great Recession?" One of the architects of Quantitative Easing recently apologized to Americans because the policy was not meant to help main street, but rather serves as the "greatest backdoor Wall Street bailout of all time." What would prompt a high-ranking former Fed Offical to issue an apology to the middle class? If his claims are true, why are the policies allowed to go on?
Glenn Beck, amongst some economists such as Marc Faber and Peter Schiff, claim the aforementioned policies have created a massive bubble, which is liable to burst at any moment. With stocks at an all-time high and 2014 Q1 GDP shrinking by almost three percent, could any of these brazen claims be coming to fruition? Let's hope not but maybe we should take heed since no one listened to Schiff and Faber the first time when they predicted the housing bubble of 2007, which led to the "Great Recession." Even if these predictions are not true, and let's hope they are not, income inequaility is a huge issue and threatens the health of the American economy.