The Middle Class Engine of Growth

One of the greatest achievements of globalization has been the lifting of billions of people out of poverty and into the middle class which is the engine of economic growth. By the 1960s the middle class consisted of about a third of the world’s population, now more than 50% can be counted as middle class according to research by Surjit Bhalla, an Indian economist, with most of the growth coming from China. People in the middle class are generally more open-minded, more concerned about the future of their children, and prefer free markets and democracy which are better to balancing conflicting interests and promote growth. The middle class is also more likely to invest in education, new products and technologies, start new businesses which can generate jobs and are vital to prosperity.  With the economic crisis rolling around the globe and the risk of reversing globalization, the rise of the middle class could stop or reverse leaving the whole of humanity much worse off and a lot poorer potentially leading to instability and conflict.