Surname2
Demographic changes by the year 2043 will have significant long-run economic consequences.
In the year 2043 60.7% of people under age 18 will be people of color. While 64.9% will be non-
Hispanic white over age 65. (Wilson, 2016). An increase in a younger and older non-working
population will shrink the labor force hence slowing down economic growth. Dependency ratio
will also increase as a result of an increase in younger and elderly populations. long-run
Economic implications of a higher dependency ratio include; reduction in saving rates as most of
the income is spend on recurrent expenditure, investment rates reduce because there are fewer
funds to finance projects, house prices will fall due to a reduction in the labor force and
consumer consumption behavior will change; consumption will shift from certain goods.
Wage stagnation is a common problem for the working class. 66.1% of the labor force in 2013
comprised of people with less than a bachelor’s degree, this group of people supplied most of the
labor that was need to drive economic growth. Despite being key players in wealth generation,
their wages remained relatively low with very minimal chances of being increased. By 2032 the
working class will still be the majority in the US labor market by 58.9% (Wilson, 2016). Wages
remaining the same over long periods affects the living standards of the working class especially
with the ever rising cost of living. “When the minimum wage doesn’t keep pace with the rising
inflation, its power erodes. It’s worth less and less and less” (Allegretto, 2016). Class inequality
is the main cause of wage stagnation, to solve wage stagnation we have to address the issue of
class inequality which is caused by many factors including racial discrimination.
Recommendations
Much needs to be done to restore the economic bargaining power of the working class and
eventually finding economic justice for the people of color. One of the ways this can be achieved
is through safeguarding the voting rights of the people of color. Many working class people have
disengaged from politics due to the imbalance of political and economic power. In the 2012
elections businesses outspent unions by a margin of 57-1(Draut 2016). People of color are less
likely to vote due to obstacles. To help solve this, there needs to be a tactical change on how
voter engagement is done and also make voting mandatory.
Establishing national multiracial working class solidarity to help advance racial and class
equality can be instrumental in fostering and rebuilding the economic power of the working
class. The working class was once able to live a comfortable middle-class lifestyle until when the
civil rights movements started calling for equal opportunities for African Americans. Coming up
with policies that address continued racial disparities and at the same time solving class
inequalities will require adopting a mindset that does not view other group’s set of issues as
totally different from or in total competition with another’s.
Conclusion
In conclusion, demography changes have a very big influence on the economy of the United
States America, its infrastructure and social factors. The best way to achieve economic liberation
in the working class of the people of color is by the diverse groups acknowledging that they
share a lot in common and work together to achieve their intersecting agendas. Issues of race and
ethnicity remain to be central in the culture of the United States of America and needs to be
addressed with urgency.
