Economics of Education Policies: Shrinking Middle Class (ENGL71000)

This essay, submitted to Desklib, examines the complex relationship between education policies and economic inequality, particularly focusing on the shrinking middle and lower classes. It analyzes the impact of rising college costs, student debt, and reduced government funding on access to higher education and its subsequent effects on poverty. The essay critiques the current state of education, referencing Robert Reich's arguments, and explores how policies contribute to economic disparities. It argues that the focus on higher education as a private investment and the rising tuition fees exacerbate the problem, advocating for government intervention through increased funding for public education and progressive taxation to support lower and middle-income families. The author concludes by highlighting the need for a more equitable approach to education to foster economic growth and opportunity for all social groups, emphasizing the role of innovation, creativity, and technological advancements in overcoming poverty. The essay also explores the role of globalization and technological changes in shaping the job market and the value placed on college degrees by prospective employers.

Running Head: ECONOMICS 1
Academic Communication Business and Economic
Institutional Affiliation
Name
Date

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Shrinking the Lower and Middle Class Through Education Policies
Introduction
There has been cultural politics going backwards especially in times of gatherings about
severe identification of groups of people in races, colors and later sites out the problems in
schools (Reich, 2012). It is observed that the diversity fixation in American schools has been
responsible in creating the liberal generations about the conditions emanating from outside of the
specified groups of people and their tasks of taking on their lives (Forbes, 2013). Besides, the
progression of students today in their countries are full of narcissistic ways which are beyond
their parents. This situation therefore creates racial narcissism that later brings drastic poverty
among students especially the ones who are not regular Americans (Reich, 2012). Therefore, this
accounts the writer to come out with the evaluation of whether the education attained from high
schools, colleges and other levels are worthy the costs.
Assumptions about the poor shape of policies
According to Robert Reich essay, many states cut their spending on the higher education
among the people of the nation. That was majorly done in 2010 and 2011 were some education
institutions lost above 40% of their funding from state (Reich & Enhrenreich, 2014). This leads
to the shortfall due to the rising of fees and tuition which does not necessarily gauge the incomes
of the people below the poverty line. It is evident that children in lower and middle-income
families are hardest to hit the target of fighting poverty from their communities and the entire
county as a whole. This could have been the reason of decreasing rate of median wage since
2000 because of inflation (Reich & Enhrenreich, 2014). Also, the Pell grants which support
students from humble families are reducing sharply and so they only help to clear 30% of the

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fees and tuition which is not the case with in 1980 where they used to clear fees above 50% or
even 75%. In addition, there is a skyrocketing situation about student debt which is evidenced by
the Federal Reserve bank of New York estimated at $550 billion (Goldrick & Reich, 2014). In
other words, there should be enforcement of punitive laws for repaying the loans, this sounds
impossible due to the rising poverty among the classes of people.
Furthermore, it is observed that inequality or uneven distribution of income among
different classes of people in America alters poverty. This is because for one to attain a good
paying job, the employers require someone with a certified college degree (Meranze, 2016).
Besides, the rapid technological and globalization change are giving provisions on the premiums
about the ability of resolving issues while at workplace. Additionally, the degree attained from
the colleges shows a depiction of ability and potential to prospective employers about the young
to make them succeed (Meranze, 2016). The myth of saying that higher education acts as the
private investment according to many people is wrong. This is because most of the people
consider education as the public good due to the capacities of the young people through
innovative and investigative skills about the future of the country.
The Critical effects of policies on the Poor
In order to make the education system in the country to be more efficient, there is a need
for every bureaucracy to become trimmed in relation to universities about the myth of being the
labor intensive enterprises (Mushtaq, 2010). This cannot apply in poverty reduction scheme but
instead academic institutions need base on the research and teaching knowledge through
computerized machine tools.

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Furthermore, the tuition and fees for the families with higher levels of income should be
raised. This is because when the tuition of students from rich families is hiked, the extra money
remains in order to subsidize the lower and medium income students. This policy is to ensure
equality in terms of education between the social class of people (Reich, 2014). Due to the
payments made to the official sticker prices, it won’t solve the problem of poverty among
students in the country due to the proportional discounts received in relation to the family
incomes.
Most significant is that, the valuable policy or measurement to the poverty arising from
education scheme should be done by the government (Ki-Moon, 2010). This can be done through
supporting of public education more especially at all levels. However, this incidence requires
high tax revenues from the Americans who are willing and are able to pay in support of the
scheme (Khan, 2009).
In addition to the above, many Americans believe in ideal opportunities that are equal.
This is supported by the notion of being a patriot in order to fulfill the responsibility of paying
taxes to support the public educational schemes (Khan, 2009). Most significant is that the
America’s rich citizens have got a duty of paying more taxes in the attempt of supporting lower
and middle-income families to acquire opportunities of shining in America.
Conclusion
In summary, the argument of creating equality among the social groups according to this
study would be a negative ideology towards the growth of the economy. Therefore, in the
economy there should exists both uneducated and middle class of people who can be willing and

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be able to work for others. This situation creates more investments in the country characterized
with the ready manual labor. However, argument leaves many people with negative attitudes by
considering that there should be equal opportunities through education. This is because the
educated citizens are endowed with knowledge of innovation, creativity and technological
advancements that can help them to overcome poverty out of their pockets.
In summary, the essay evaluates the complex measures about the alleviation of poverty
outcomes can be modeled by the interconnections of institutions, ideas, practices and policies in
attempt of rooting the economic development, politics and social policy. Therefore, the writer
advocates for the proper measures from the government about the shape of poor which emanate
from lack of education more so the college degrees.

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References
Enhrenreich, B. & Reich, B.R. (2014). Writing as a Reader- Attitude about poor in United States. Pp
482-85.
Forbes,. K.J. (2013). A Reassessment of the Relationship Between Inequality and Growth, American
Economic Review 90 (4): 869-887.
Goldrick, R. & Reich, B.R. (2014). Writing as a Reader: Social Mobility, Education and Overlap
inequality, pp 749-58
Khan, H.M. (2009). Governance, Growth and Poverty Reduction. DESA Working Paper No. 75. Pp 23-
43
Ki-Moon, B. (2010). Combating Poverty And Inequality. Structural Change, Social Policy and Politics
United Nations Research Institute For Social Development. Retrieved from:
https://www.unicef.org/socialpolicy/files/Combating_Poverty_and_Inequality.pdfMeranze, M.
(2016). As Trump Privatizes Education, Dumping Identity Studies is the Worst Possible Advice.
Retrieved from: http://utotherescue.blogspot.com/2016/11/as-trump-privatizes-education-
dumping.html
Mushtaq, K.H. (2010). Governance and Development: The Perspective of Growth-Enhancing
Governance, in GRIPS Development Forum (ed.). Diversity and Complementarity in
Development Aid: East Asian Lessons for African Growth, Tokyo: National Graduate Institute
for Policy Studies. Retrieved from: http://mercury.soas.ac.uk/users/mk17/Docs/GRIPS.pdf>
Reich, B.R. (2012). Stop Starving Public Universities and Shrinking the Middle Class. Retrieved from:
https://robertreich.org/post/18496069594
Reich, B.R. (2014). Why College Is Necessary But Gets You Nowhere. Retrieved from:
https://robertreich.org/post/103472733520

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