By Rex Nutting,
MarketWatchWASHINGTON (MarketWatch) — This recession has strangled the American middle class, but it was in a weakened state long before anyone heard of subprime mortgages.
The great middle of American society has been falling for 30 years or more, a product of vast economic, social and political forces, both foreign and domestic. It won’t be restored with one congressional election, or even a presidential one. Its troubles are much more serious than that.
The Census Bureau reported this week that the inflation-adjusted median household income had fallen 0.7% in 2009 to the lowest level since 1997. The typical household earned just under $50,000 a year. Read more about the increase in poverty last year.
The Great Recession has taken away the small gains made during the 1980s and 1990s and ripped open wounds that were festering for 30, 35, or 40 years. The middle class is more anxious now than at any time in generations. The worries aren’t new; they are just on another level.
After a great leap forward in the three decades after World War II, the typical American family has barely improved its financial status in the three decades since the 1970s. Any increase in income has been largely due to working longer hours, including sending Mom out into the world to earn a paycheck. ...........(more)
The complete piece is at:
http://www.marketwatch.com/story/middle-class-running-as-fast-as-it-can-2010-09-17