Elizabeth Warren: The End of the Middle Class

by: John Lounsbury

Read it in the Huffington Post (here). Elizabeth Warren details some of the data that documents the economic disaster that is rotting the economic foundation of the U.S that was built in the last century. The has been discussed by other authors, including some here on Seeking Alpha (see James Quinn here and here, and this author for examples), but few have the public recognition of Elizabeth Warren.

Here is a graphic from the Warren article: (Click to enlarge)

At the center of the Warren article are the changes in employment markets that have impacted the traditional middle class strength of America. Other work has shown that jobs have been lost and are not coming back. Of the total increase in unemployment in this recession (nearly 9 million), more than 5 million are jobs that have permanently disappeared. See the following graph:

This has contributed to unprecedented duration of unemployment as seem in the following graph.

The New York Times recently published the following group of graphics detailing the changing economic map of the U.S. population.

Elizabeth Warren is simply adding an exclamation point to the situation that others have been describing. But a very welcome addition to the discussion it is.

Disclosure: No stocks mentioned