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The Social Cost of Non-Middle-Class Nations on Economies

In: Building Middle Class Nations

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  • Ahmed Tahiri Jouti

Abstract

Chapter 6 explores how the underperformance of social public policies directly impacts a country’s economic competitiveness, particularly by increasing the cost of doing business and reducing productivity. While economic, political, and social indicators are commonly used to assess a country’s business environment, hidden costs arising from inadequate education, healthcare, housing, and transportation systems place financial burdens on individuals and businesses. These costs lower employee well-being, fuel talent drain, and erode the country’s competitive advantage over time. The chapter warns that such inefficiencies create a vicious cycle: citizens and businesses lose trust in government performance, leading to tax avoidance and further weakening public policy effectiveness. Moreover, the financial burden of social gaps is unequally distributed, exacerbating inequality and undermining the emergence of a cohesive middle-class nation.

Suggested Citation

  • Ahmed Tahiri Jouti, 2026. "The Social Cost of Non-Middle-Class Nations on Economies," Springer Books, in: Building Middle Class Nations, chapter 6, pages 157-186, Springer.
    • Handle: RePEc:spr:sprchp:978-3-032-02134-2_6
    DOI: 10.1007/978-3-032-02134-2_6
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