The government in the United States uses two strategies to affect economic activity: fiscal policy and monetary policy. The government exercises its authority to control the amount of money in circulation and the rate of interest through monetary policy.
It makes use of its authority to tax and spend through fiscal policy. In the decades following World War II, some of the most important social laws were passed.
The Civil Rights Act of 1964, the Medicare and Medicaid health service systems, and other significant new government benefits and regulations were approved. The "War on Poverty" was also started in America. Adults without a college degree are typically considered to be members of the "working class" in the United States.
A large portion of the working class is also considered middle class. Over the past 50 years, the middle class in America has been getting smaller as more households fall into the upper and lower income quartiles due to rising inequality.
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