In my experience (have some family members running small businesses as well, including my father) the crunch seems to be coming from the fact that the middle cl

In my experience (have some family members running small businesses as well, including my father) the crunch seems to be coming from the fact that the middle class has just enough money to make mortgage / car payments - which keep them in the middle class - but not enough left over to spend at small businesses. If compensation was rising in accordance, there wouldn't be a problem. However large corporations are hoarding cash like crazy and leaving employees out in the cold which in turn harms small businesses.