'Why America’s Middle Class is Lost'
Part 1 of Tankersley’s series on the problems facing the middle class (“Liftoff & Letdown: The American middle class is floundering, and it has been for decades. The Post examines the mystery of what’s gone wrong, and shows what the country must focus on to get the economy working for everyone again. Monday: The devalued American worker.”):
Why America’s middle class is lost, by Jim Tankersley, Washington Post: … Yes, the stock market is soaring, the unemployment rate is finally retreating after the Great Recession and the economy added 321,000 jobs last month. But all that growth has done nothing to boost pay for the typical American worker. Average wages haven’t risen over the last year, after adjusting for inflation. Real household median income is still lower than it was when the recession ended.
Make no mistake: The American middle class is in trouble.
That trouble started decades ago, well before the 2008 financial crisis, and it is rooted in shifts far more complicated than the simple tax-and-spend debates that dominate economic policymaking in Washington. …
In this new reality, a smaller share of Americans enjoy the fruits of an expanding economy. This isn’t a fluke of the past few years — it’s woven into the very structure of the economy. And even though Republicans and Democrats keep promising to help the middle class reclaim the prosperity it grew accustomed to after World War II, their prescriptions aren’t working. …
The great mystery is: What happened? Why did the economy stop boosting ordinary Americans in the way it once did?
The answer is complicated, and it’s the reason why tax cuts, stimulus spending and rock-bottom interest rates haven’t jolted the middle class back to its postwar prosperity. …
Source: http://economistsview.typepad.com/economistsview/2014/12/why-americas-middle-class-is-lost.html
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