[lbo-talk] Is the middle class failing ?

Leigh Meyers leighcmeyers at yahoo.com
Mon Sep 20 17:20:57 PDT 2004


Redux.

"Economists and politicians -- including the presidential candidates -- are locked in a vigorous debate about the job losses. Is this just another rocky stretch of the U.S. economy that, if left alone, will foster new industries generating millions of as-yet-unimagined jobs, as it has during other times of upheaval? Or is the workforce hollowing out permanently, with those in the middle forced to slide down to low-paying jobs without benefits if they can't get the education, credentials and experience to climb up to the high-paying professions?" ~~~~~~~~~~~

washingtonpost.com As Income Gap Widens, Uncertainty Spreads More U.S. Families Struggle to Stay on Track By Griff Witte Washington Post Staff Writer Monday, September 20, 2004; Page A01 http://www.washingtonpost.com/ac2/wp-dyn/A34235-2004Sep19?language=printer Scott Clark knows how to plate a circuit board for a submarine. He knows which chemicals, when mixed, will keep a cell phone ringing and which will explode. He knows how to make his little piece of a factory churn hour after hour, day after day.

But right now, as his van hurtles toward the misty silhouette of the Blue Ridge Mountains, the woods rising darkly on either side and Richmond receding behind him, all he needs to know is how to stay awake and avoid the deer.

So he guides his van along the center of the highway, one set of wheels in the right lane and the other in the left. "Gives me a chance if a deer runs in from either direction," he explains. "And at night, this is my road."

It's his road because, at 3:43 a.m. on a Wednesday, no one else wants it. Clark is nearly two hours into a workday that won't end for another 13, delivering interoffice mail around the state for four companies -- none of which offers him health care, vacation, a pension or even a promise that today's job will be there tomorrow. His meticulously laid plans to retire by his mid-fifties are dead. At 51, he's left with only a vague hope of getting off the road sometime in the next 20 years.

Until three years ago, Clark lived a fairly typical American life -- high school, marriage, house in the suburbs, three kids and steady work at the local circuit-board factory for a quarter-century. Then in 2001 the plant closed, taking his $17-an-hour job with it, and Clark found himself among a segment of workers who have learned the middle of the road is more dangerous than it used to be. If they want to keep their piece of the American dream, they're going to have to improvise. snip~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Henderson says the middle class is thriving, and by many measures, he's right. As a group they're earning more money than they have before, and their ranks have swollen with members who can afford the DVDs, SUVs and MP3s now seen by many families as part of the essential backdrop to modern life. Whereas Census numbers show the median household earned $33,338 in 1967 when adjusted for inflation, that number was up by $10,000 in 2003.

But when compared with those at the top, the middle has lost much ground. And many in the middle have dropped well behind their peers.

The gaps are likely to widen, according to Robert H. Frank, a Cornell economist. He said that as more people worldwide become available to do routine work for less money and as computers take on increasingly complex functions, the demand for those Americans whose skills are easily duplicated could drop. "The new equilibrium," Frank said, "may be a little meaner and more unpleasant than it was before."

Lotsofanalysis~~~~~~~~~~~~~~~snipped http://www.washingtonpost.com/ac2/wp-dyn/A34235-2004Sep19?language=printer ======================================



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