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The Middle Class Grow the Economy, Not the Rich - President’s Speech Hints at Alternative Model of Growth

'As the president noted: “When middle-class families can no longer afford to buy the goods and services that businesses are selling, it drags down the entire economy from top to bottom. … that’s why a CEO like Henry Ford made it his mission to pay his workers enough so they could buy the cars they made.”

There are many other connections besides the demand case the president makes: a strong middle class is a prerequisite for robust entrepreneurship and innovation, a source of trust that makes business transactions more efficient, a bulwark against credit booms and busts, and a progenitor of virtuous, forward-looking behaviors, such as valuing education.’