Wednesday, September 14, 2011

I've always thought...

...that the tea party movement was largely a function of the weak economy. (When things get rolling again, like in the 1990s, you just won't see anyone protesting in the streets. They'll be too busy working.) A psychologist might say that the tea party's anger is a manifestation of fear and hurt. Many white, middle-class Americans are fearful for their futures and feel betrayed that the global economy has left them behind.

A front page story in the Times this morning, "Poverty Reaches a 52-Year Peak, Government Says," reinforces my suspicions (my emphasis):

And in new signs of distress among the middle class, median household incomes fell last year to levels last seen in 1997.

Economists pointed to a telling statistic: It was the first time since the Great Depression that median household income, adjusted for inflation, had not risen over such a long period, said Lawrence Katz, an economics professor at Harvard.

“This is truly a lost decade,” Mr. Katz said. “We think of America as a place where every generation is doing better, but we’re looking at a period when the median family is in worse shape than it was in the late 1990s.”
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Overall, median household income adjusted for inflation declined by 2.3 percent in 2010 from the previous year, to $49,445. That was 7 percent less than the peak of $53,252 in 1999.
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According to the Census figures, the median annual income for a male full-time, year-round worker in 2010 — $47,715 — was virtually unchanged, in 2010 dollars, from its level in 1973, when it was $49,065, said Sheldon Danziger, professor of public policy at the University of Michigan.

Those who do not have college degrees were particularly hard hit, he said. “The median, full-time male worker has made no progress on average,” Mr. Danziger said.
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But even the period of economic growth that came before the recession did little for the middle and bottom wage earners.

Arloc Sherman, a senior researcher at the Center on Budget and Policy Priorities, said that the period from 2001 to 2007 was the first recovery on record where the level of poverty was deeper, and median income of working-age people was lower, at the end than at the beginning.

“Even before the recession hit, a lot of people were falling behind,” he said. “This may be adding to people’s sense of urgency about the economy.”
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The report also said the number of uninsured Americans increased by 900,000 to 49.9 million.
 
Those covered by employer-based insurance continued to decline in 2010, to about 55 percent, while those with government-provided coverage continued to increase, up slightly to 31 percent. Employer-based coverage was down from 65 percent in 2000, the report said.

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