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You're right, economic security has indeed declined sharply for that formerly-privileged segment. Now, given that living standards are still quite high and gro

You're right, economic security has indeed declined sharply for that formerly-privileged segment. Now, given that living standards are still quite high and growing over time, you'd hope they would react by being frugal and saving more, not by living even more hand-to-mouth than they used to! But ingrained habits are slow to change.

api 8y ago
"Formerly privileged..." This is dangerous race to the bottom thinking. The hidden assumption there is that previous generations of middle class people didn't deserve it and that our overall standards should be declining. I was bringing up the decline of the middle class a while back in a discussion of why Trump won. Someone else said no, its racism, and people are just angry about the loss of their privilege. They pointed out that the black white income gap had shrunk. Here's the thing though. That's conflating two issues. Racism is real, sure, and yes the black white income gap has shrunk in part due to activism against racial discrimination. But... if the middle class were healthier then blacks with their now-shrunken income gap would be doing much better. If the middle class is dying then the entire struggle for racial income equality becomes a squabble over deck chairs on the Titanic. Also on saving: the problem is that necessities like housing and health care have exploded. Costs have exploded precisely in those areas that are hardest to trim in a budget. The price of optional expenses like gadgets and entertainment has fallen.
- DoreenMichele 8y ago
  Relative poverty versus absolute. People get angry at clearly having less of the pie than someone else, even if they have enough in some sense. Sometimes, trying to even the playing field (or outcomes) can throw the baby out with the bathwater and lead to "We would all rather be equally poor than unequally better off."
  - api 8y ago
    Yes. It also comes in the form of resentment or jealousy e.g. "those union fat cats make too much" vs "how could I make as much as those union fat cats?" Race to the bottom mentalities are deadly at all levels from working class all the way up to corporate strategy. In the corporate world you see it when companies focus only on their competition and struggle to undercut each other instead of focusing on creating customer value. You get a deflationary race to the bottom that kills both margins and product quality. It ends with a market full of gutted companies competing to make crap.

api 8y ago

"Formerly privileged..." This is dangerous race to the bottom thinking. The hidden assumption there is that previous generations of middle class people didn't deserve it and that our overall standards should be declining. I was bringing up the decline of the middle class a while back in a discussion of why Trump won. Someone else said no, its racism, and people are just angry about the loss of their privilege. They pointed out that the black white income gap had shrunk. Here's the thing though. That's conflating two issues. Racism is real, sure, and yes the black white income gap has shrunk in part due to activism against racial discrimination. But... if the middle class were healthier then blacks with their now-shrunken income gap would be doing much better. If the middle class is dying then the entire struggle for racial income equality becomes a squabble over deck chairs on the Titanic. Also on saving: the problem is that necessities like housing and health care have exploded. Costs have exploded precisely in those areas that are hardest to trim in a budget. The price of optional expenses like gadgets and entertainment has fallen.

DoreenMichele 8y ago
Relative poverty versus absolute. People get angry at clearly having less of the pie than someone else, even if they have enough in some sense. Sometimes, trying to even the playing field (or outcomes) can throw the baby out with the bathwater and lead to "We would all rather be equally poor than unequally better off."
- api 8y ago
  Yes. It also comes in the form of resentment or jealousy e.g. "those union fat cats make too much" vs "how could I make as much as those union fat cats?" Race to the bottom mentalities are deadly at all levels from working class all the way up to corporate strategy. In the corporate world you see it when companies focus only on their competition and struggle to undercut each other instead of focusing on creating customer value. You get a deflationary race to the bottom that kills both margins and product quality. It ends with a market full of gutted companies competing to make crap.