AP: Income gap widens as American factories shut down

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http://apnews.excite.com/article/20140615/us--wealth_gap-manufacturing-ccf530f4f9.html

By MICHAEL RUBINKAM

READING, Pa. (AP) — In August 2008, factory workers David and Barbara Ludwig treated themselves to new cars — David a Dodge pickup, Barbara a sporty Mazda 3. With David making $22 an hour and Barbara $19, they could easily afford the payments.

A month later, Baldwin Hardware, a unit of Stanley Black & Decker Corp., announced layoffs at the Reading plant where they both worked. David was unemployed for 20 months before finding a janitor job that paid $10 an hour, less than half his previous wage. Barbara hung on, but she, too, lost her shipping-dock job of 26 years as Black & Decker shifted production to Mexico. Now she cleans houses for $10 an hour while looking for something permanent.



David Ludwig poses for a photo at his home Wednesday, May 28, 2014, in Reading, Pa. He and his wife lost their manufacturing jobs and have been struggling financially ever since. For decades, American manufacturing provided entr{e9}e to the middle class, especially for workers without college degrees. No more. Globalization, automation and recession destroyed nearly 6 million manufacturing jobs between 2000-2009, casting many displaced workers out of the middle class and, consequently, widening the income gap between rich and poor. (AP Photo/Matt Rourke)


They still have the cars. The other trappings of their middle-class lifestyle? In the rear-view mirror.

The downfall of manufacturing in the U.S. has done more than displace workers and leave communities searching for ways to rebuild devastated economies. In Reading and other American factory towns, manufacturing's decline is a key factor in the widening income gap between the rich and everyone else, as people like the Ludwigs have been forced into far lower-paying work.

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