Dear Mr Obama,
As you take office in January 2013, you must acknowledge that for the past year, gridlock and misguided priorities have stopped policymakers addressing our economic concerns. Americans’ faith in their institutions has never been lower – both government and companies have repeatedly let them down. Here are some insights to consider as you start your new term.
Economists warn that the Great Recession, and the incomplete policy response to it, will result in a lost decade of weak growth and stagnant living standards for the US. But working households in America’s middle class have already lost a decade. Their real income fell 10 per cent between 2000 and 2010, from $61,600 to $55,300. That wasn’t just due to the recession. The decade’s expansion was a bust for them as regards jobs and incomes.