Thursday, June 29, 2006

Update on the Kitchen Table Economy

As I have noted time and again, despite the healthy growth of the U.S. economy, middle class Americans are not benefitting.

Economist Jared Bernstein explains why the kitchen table economy is suffering:
This disconnect between productivity and living standards is one of today’s most important, and most unsettling, economic dynamics. It’s obviously not the only salient problem we face — the extent of our fiscal and international indebtedness is also worthy of our attention. But I see these all of a package.

It’s a package tied up with a YOYO. That’s the acronym for “you’re on your own,” which over the past few decades has become a disturbing and destructive thematic embedded in our economic policy
Read more here.

(Hat tip to Kevin Drum at Political Animal.)

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