The mainstream media bares a lot of the blame for perpetuating the myth that the economy is booming. It is not. Barely making ends meet is not a successful economy. It’s great for big business and the wealthy. The result, the gap between rich and poor is the worst since the 1920s, just before the Great Depression:
The official rate of unemployment in America has plunged to a remarkably low 3.8%. The Federal Reserve forecasts that the unemployment rate will reach 3.5% by the end of the year.
But the official rate hides more troubling realities: legions of college grads overqualified for their jobs, a growing number of contract workers with no job security, and an army of part-time workers desperate for full-time jobs. Almost 80% of Americans say they live from paycheck to paycheck, many not knowing how big their next one will be.
Blanketing all of this are stagnant wages and vanishing job benefits. The typical American worker now earns around $44,500 a year, not much more than what the typical worker earned in 40 years ago, adjusted for inflation. Although the US economy continues to grow, most of the gains have been going to a relatively few top executives of large companies, financiers, and inventors and owners of digital devices.
America doesn’t have a jobs crisis. It has a good jobs crisis.