With consumption typically responsible for two-thirds of the gross domestic product in the Americas[1][2] consumer spending is key.
Middle-out economics maintains it is only the middle class that can create the aggregate demand necessary for business to support full employment levels.
Given the wealthy's high propensity to save,[3] middle-out economics holds that large concentrations of wealth are not sufficient cause for job creation.
In this sense, it claims that the true “job creators” in a capitalistic economy are customers and not rich business people.
The term middle-out economics was coined by Eric Liu, a former speechwriter for Bill Clinton, and Nick Hanauer, a venture capitalist.