BUSINESS COMMUNICATION

Assignment: A Summary to the Article – Burgeoning Bourgeoise

Submitted to: Mr. Sammer Kamal

Submitted by: Awais Ahmad

CIIT/FA09-MBA-027/LHR
MBA 13C

Submitted on: May 05, 2010

COMSATS Institute of Information

Technology & Business Administration
 A SUMMARY TO THE ARTICLE – BURGEONING
BOURGEOISE

The author, in this article, first of all, defines the middle class people and then
describes the importance of middle class people in an economy. He states that middle
class has a strong impact in developing and changing the economy. He is of the
opinion that the economic development of a country depends on the attitude, behavior
and nature of the middle class existing in that country. He focuses on the following
points.

• By the definition, Middle Class is referred to the people, who are not resigned
to a life of poverty, who are prepared to make sacrifices to create a better life for
themselves, but who have not started with life’s material problems solved because
they have material assets to make their lives easy.

• Middle class have a great importance in world trade and globalization.

• Middle class stands on stage 2 or stage 3 in the model given by Maslow about
hierarchy of needs, that is, they stand on fulfilling safety and love/belonging needs,
they are in such status that they can fulfill their basic and psychological needs of food,
shelter and clothing.

• There are some expectations from the middle class, that they are the dominant
force in establishing the democracy. For this purpose, the author gives some examples
from India, where the middle class takes part in voting.

• Middle class follows the one third rule – a rule, in which one third of the total
income earned by middle class is utilized in discretionary income, that is, one third of
total income is consumed for emergency purposes.

• The point, at which the poor start entering the middle clas is called “Sweet
Spot of Growth”. At this moment, the poor countries can get maximum benefit from
their cheap labor.

• Extreme Poverty or Riches is not favorable for an economy. It does not give
the actual picture of the overall economic position of a country. The Actual Economic
Picture is shown by the middle class existing in the economy.

The author explains his point of view by giving examples from China and
India, where middle class is mostly contributing in the economic and political
development. He considers the middle class as the backbone of an economy. By the
end, he states that the middle regions of society seem to be best suited to intellectual
improvement.

References:

Article: http://www.economist.com/specialreports/displaystory.cfm?
storyid=13063298
(Actual Source of Material is attached herewith for reference purposes.)