The Impact of the Economic Crisis on the Middle Class

Once the economic crisis comes, it means inflation or deflation. So how big is the impact of the economic crisis on the middle class?

Simply put, the rich have factories and companies. Although inflation will affect the value of factories and equipment to a certain extent, it will also reduce the debt value of factories. To put it simply, for the rich, the company they run is definitely in debt, which will be diluted by inflation, and the money to be paid back will be less, and it will be lighter without debt. But for the middle class, most of the property of the middle class is deposits. After inflation, property is diluted and instantly falls to the proletariat.

If it is austerity, will the economic crisis be more friendly to the middle class? Actually, it won't. Once deflation occurs, enterprises will step up layoffs, because things can't be sold and there is no need for such a large output. The middle class is unemployed, and it only takes a serious illness or a catastrophe to return to poverty in an instant.

Therefore, in the eyes of many economists, the concept of the middle class is actually similar to that of the proletariat, because it is a group of people who have no grasp of production resources.