Like so many other things in popular American culture, this quaint notion of a “middle class” in the U.S. is at this point nothing more than a myth; a rapidly fading fantasy from a bygone era. As myself and many others have noted for quite some time, the decimation of the middle class began long ago. It really got started in the early 1970′s after Nixon defaulted on the gold standard and financialization began to take over the American economy. Median real wages haven’t increased since that time and the rest is history.
Although the evolutionary process toward oligarchy began long ago, its finishing touches have been applied in recent years. This has been easily achieved by the Federal Reserve and U.S. government’s response to the financial crisis, which was and continues to be characterized by an intentional funneling of all the nation’s wealth into the hands of their patrons; the 0.01%. As the chart below demonstrates clearly (and as I highlighted in the post: Where Does the Real Problem Reside? Two Charts Showing the 0.01% vs. the 1%), it is the tiny oligarch class that is reaping all of the benefits.