The American government is offering billions of dollars to corporations as well as to individuals in form of tax offers and subsidies. Using its wealth fare, which is a program that aims at promoting the welfare of both corporations and individuals, the government is making the beneficiaries of the program even wealthier. Wealth fare is divided into five distinct categories. Tax breaks the largest share of the wealth fare. Though invisible, tax breaks have positive gains on the wealthy individuals as well as to corporations. Very large corporations and wealthy individuals make huge amounts in their daily businesses.
Through the tax breaks, they are able to increase their net incomes, making them wealthier. Subsidies accompanied by the use of public resources offered by the government reduce the costs that individuals and corporations incur in their businesses. For instance, undercharging of timber that individuals and corporations take from public lands. Direct grants also play part in reducing the costs of corporations and individuals whenever they engage in listed economic activities in America, making them wealthier. The government gives away researches and development that are publicly funded to private companies, to make use of them to carry out their activities effectively. In short, it means that the government carries out research on their behalf, cutting their operating costs, which increases their wealth (Devine, 2007).
There are four forms of upper class capital. Human capital is the capital that results from use of health, skills and knowledge. Since people in the upper class have good health, skills and are competent, they are able to be effective in productive works. Education training accompanied by this type of capital contributes to the flourishment of the economy. People get to know more and thus apply it in the production sector, leading to the growth of the economy. Financial capital enables people in the upper class to access other types of capital, thereby increasing investments through trading. Financial capital is obtained through investments, which people in the upper class use to raise other types of capital. Manufactured capital helps in efficient production of goods as well as services. It increases the quality the outputs being disposed to buyers, thus improving trade. Through more ventures being explored through the production, many people secure jobs, thus leading to an improvement of the living standard in the country. Natural capital, which is the stock leading to goods and services production, ensures adequate utilization of resources. Since people in the upper class have adequate finances and competence, they are able to make use of materials that are renewable and those that are non-renewable in production of other materials. This improves the GDP of the country through creation of jobs.
Ecology of class refers to the relations between people of different social classes as well as to their lifestyles. Depending on social classes, people will interact differently and will have different lifestyles. People will also be influenced by their social classes when making decisions about both their residential and occupational location. People in the upper class will choose to live in highly valued places while people in the low class will choose to live in places they can afford as they have low income. Ecology of class determines the place that a person will live and work, depending on his or her social class. The concept is important as it helps people live comfortable lives, which they can afford. For instance, the upper middle class people are able to choose residential and occupational places that are not too expensive and not too cheap. Too expensive places would make them strain their budgets while too cheap places would interfere with their position and title in the society.
In America, the business world has become the heart of the people in the middle class. Some of the qualities they possess for them to be successful in the setting include vulnerability in careers and education, supportive of political platforms that are moderate and rising expectations of their welfare expansion. The middle class people’s incomes are precarious and most of them have unstable jobs (Warner, 2000). This gives them the desire to enter the setting and their high levels of energy are reflected from their excellent economic management. Most of those in the business have huge resources to invest and thus pose threats to the middle class. For them to survive, they have to be good managers of the economy. Through the preference for moderate politics, they are able to influence development of the economy through participating in political processes, thus promoting inclusive business growth. They manipulate the political processes thus leading to establishment of favorable business policies to them, increasing their chances of survival in the setting. Their rising expectations make them to be aggressive in the business, to better their success. They are never comfortable with their lifestyles and thus get motivated to explore the business setting. Through thorough exploration, they come up with innovations, which ensure their success in the setting.
Devine, F. (2007). Social class in America and Britain. Edinburgh: Edinburgh Univ. Press.
Warner, W. L. (2000). What social class is in America. Indianapolis, Ind: Bobbs-Merrill, College Division.