Why the squeezed middle are poorer than their parents
From our UK edition
It won’t be news to readers of The Spectator that one of the long-term effects of globalisation is the hollowing out of the middle class. In a study of wage growth in ten advanced economies published a few years ago, the Resolution Foundation found that median pay lagged behind growth in GDP, with the gap between the middle class and the highest-paid growing and the gap between them and the lowest-paid shrinking. The phenomenon is particularly pronounced in the US. There, the top 10 per cent of income earners have seen their share of national income increase since the 2007-08 recession, while the remaining 90 per cent have seen their share fall, with middle-income groups hit the hardest.