"Homi Kharas, a researcher at the Brookings Institution, estimates that by 2020, the world's middle class will grow to include a staggering 52% of the total population, up from 30% now."
It sounds like good news, right? And, of course, it is -- the projection is attributed to folks moving up from poverty, not down from wealth. But according to Moises Naim, the thunder created by the far-off middle class herd is already audible... And it is getting louder.
Briefly, a larger middle class creates a higher demand for the comforts we're all used to, like an ample variety of foods, modern appliances, and a wardrobe (and not just the clothes on your back). And what does a higher demand make room for? Higher prices. And scarcity. It's simple economics, and according to Naim, it's unpredictable, and it's going to be noisy.
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