The crisis of middle-class America

[Emit]

The crisis of middle-class America
By Edward Luce

Published: July 30 2010 17:04 | Last updated: July 30 2010 17:04

Technically speaking, Mark Freeman should count himself among the ­luckiest ­people on the planet. The 52-year-old lives with his family on a tree-lined street in his own home in the heart of the wealthiest country in the world. When he is hungry, he eats. When it gets hot, he turns on the air-conditioning. When he wants to look something up, he surfs the internet. ...

Yet somehow things don’t feel so good any more. Last year the bank tried to repossess the Freemans’ home even though they were only three months in arrears. Their son, Andy, was recently knocked off his mother’s health insurance and only painfully reinstated for a large fee. And, much like the boarded-up houses that signal America’s epidemic of foreclosures, the drug dealings and shootings that were once remote from their neighbourhood are edging ever closer, a block at a time.

What is most troubling about the Freemans is how typical they are. Neither Mark nor Connie – his indefatigable wife, who is as chubby as he is gaunt – suffer any chronic medical conditions. Both have jobs at the local ­Methodist Hospital, he as a warehouse receiver and distributor, she as an anaesthesia supply technician. At $70,000 a year, their joint gross income is more than a third higher than the median US household.

Once upon a time this was called the American Dream. Nowadays it might be called America’s Fitful Reverie. ... “If we lost our jobs, we would have about three weeks of savings to draw on before we hit the bone,” says Mark, ... “We work day and night and try to save for our retirement. But we are never more than a pay check or two from the streets.”

~snip~

The slow economic strangulation of the Freemans and millions of other middle-class Americans started long before the Great Recession, which merely exacerbated the “personal recession” that ordinary Americans had been suffering for years. Dubbed “median wage stagnation” by economists, the annual incomes of the bottom 90 per cent of US families have been essentially flat since 1973 – having risen by only 10 per cent in real terms over the past 37 years. That means most Americans have been treading water for more than a generation. Over the same period the incomes of the top 1 per cent have tripled. In 1973, chief executives were on average paid 26 times the median income. Now the ­multiple is above 300.

~snip~

http://www.ft.com/cms/s/2/1a8a5cb2-9ab2-11df-87e6-00144feab49a.html

[keep_it_real]

1. Time for a National strike

Like maybe November or December 1st?

[Dan]

2. I sometimes wonder

how many of these people were considered Reagan's Democrats