The recent discouraging news on the economy, especially with respect to unemployment, has once again fueled the debate as to the causes of this very slow so-called recovery.
But few focus on the key issue of the declining incomes and purchasing power of middle-class and working-class Americans. Since the 1970s, these vital classes have seen their incomes decline. As their incomes decline, they have to resort to having dual spousal incomes, buying on credit and overusing their credit cards, and using their mortgages as borrowing machines.
However, these strategies are less viable during this Great Recession.