However, the conclusion that it is related to globalization is unclear. Correlation and causation are two different things. I’m not even sure that a good case for correlation has been made.
There is much stronger correlation between the decline of the middle class and concentration of wealth among the top few percent originating with the fiscal and regulatory policies of the 80’s.
Quite possibly, the concentration of the top few percent is correlated to both. It’s a non-linear and inter-connected world.
Corporation A moves mfg to China, labor costs drop to a fifth, CEO’s and management’s pay skyrockets, US labor replaces job with wall mart sales associate @ half the amount…. Voila!
Former middle class replaces wages with debt to keep up consumption…Debt bubble collapse…which brings to about now.
