U.S. Likely To Stage A Middle Class Comeback

Economy Jamie Simon
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Just this week, a foreseeable evidence indicating that “the tide has begun to turn” on the middle class’ erosion was announced by William Dudley, CEO, and president of the Federal Reserve Bank.

As one of the main factors responsible for the rising wage inequality, this long-term hollowing out of jobs in the middle of the wage distribution has contributed to an increasing sense for some that they are being left behind during the ongoing economic expansion. This was revealed on Thursday during a news conference.

An inescapable element of polarization has been bubbling to the forefront of the 2016 election cycle. The unexpected success of Sen. Bernie Sanders of Vermont on the Democratic side and Donald Trump on the Republican side have evidenced an even closer drift of candidates and the rhetoric they use to the extremes. At this stage of the game, appealing and catering to moderates now seem to be a thing of the past.

This trend has been advanced by some theorize that broadening a bifurcation and income inequality of the labor market. A general stagnation of national wages and the decline of the American middle class have been well documented over the last several decades.

There has been a visible divergence on the types of jobs employers are most actively recruiting for, since the Great Recession. While mid-wage positions such as administrative support personnel, construction workers, and manufacturers have largely been left in the dust, both high-paying specialized professions and low-paying service jobs have been in high demand.

However, there are currently remarkable gains in middle-wage jobs – surfacing for the first time in quite a while – which are outnumbering gains in lower and higher wage jobs nationwide, as noted by Dudley.