Narrowing income inequality and combating poverty will be the most nagging issues challenging the Egyptian government and all parties concerned in the coming decades.
As the nation’s poor feel the pinch of skyrocketing prices and the depreciated purchasing power of the pound, it is imperative to look for a way that ensures fair distribution of national income.
President Abdel Fattah El Sisi has instructed the government to expand social protection measures for the needy.
However, the middle class needs more attention given that the social protection programmes mainly target the poor nationwide.
Unfortunately, Egyptians from all walks of life, whether public servants, private sector workers, professionals, or craftsmen, are feeling the pinch of scorching prices.
Typically, the universal definition of the middle class is a large group of citizens, who are well-off without any subsidies from the state.
They afford a college education, regularly pay their bills, and even save for retirement.
The middle class is divided into an upper class and a lower class according to income, education, and social level.
Therefore, this class, especially the lower segment, is highly impacted by economic gyrations and may slip into the poor class.
In emerging economies like India, Malaysia, South Africa, and Brazil, middle-class households own homes and cars and travel abroad on vacations.
In Egypt, the middle class is caught between the hammer and anvil, barely eking out a living.
Why the middle class?
The middle class plays the most important political, and socioeconomic role in economic growth and development. It strikes a balance between the other two classes: the upper and the poor. It is like a bridge between the rich and the poor. It forms the nation’s general social sentiment.
The middle class protects the nation’s social and cultural values and stands out as a pillar of political stability and social peace. Therefore, all parties concerned should safeguard this class.
The income tax system should be revised in a way that removes all financial burdens on the middle class. By all means, a progressive tax system is a must for social justice.
The rich should be taxed highly according to their incomes. It is essential to firmly stand against any further deterioration of the middle class to protect society as a whole.
