Hello
As someone with 0 economics knowledge but keen interest I keep hearing this term “middle class trap” and how it is bad for countries long term economy and its people. What does it mean and why is it harmful for a country’s long term prospects ?
Thank you
In: 467
Someone mentioned in another comment but you start making just enough and suddenly lose affordable health care or free health and other services for low income people. I have friends and a family member that chose to stay in a lower paying job to not lose their kids benefits and medical among other things. The wives also aren’t working or they’re going to school for free to get into a good paying job. Depending on how much of a jump you made from your poverty level income to your “middle class” you may actually be worse off now having to pay hundreds for health insurance for a family or not getting school aid anymore. Back in 2014 I was looking to make the jump to a higher paying job. I did the math, looked at tax brackets, talked to my tax guy and he said you need to make a substantial jump to be worth it. I got myself into a technical job working on cars and went from $34-$36k a year to $70-$75. It was fine for a while but now with rents and everything being extremely expensive $100K seems barely enough again.
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