Re:The Stock Market Is Shrinking
by adventured on Sunday August 05, 2018 @02:43PM
(#17692770)
The middle class + upper classes have expanded, not shrank. [1][2]
That means there should be more potential buyers, not fewer.
The premise of a shrinking middle class isn't strictly a myth, however it ignores the fact that what is actually happening is that the middle class is moving up faster than the bottom economic tier is expanding. That process is contracting the middle class - it's not contracting due to eg increased poverty, as poverty in the US has gone down over time. The sole reason there has been any net expansion in the bottom economic tier, is due to extreme low skill / low wage labor importation since the late 1970s.
That means there should be more potential buyers, not fewer.
The premise of a shrinking middle class isn't strictly a myth, however it ignores the fact that what is actually happening is that the middle class is moving up faster than the bottom economic tier is expanding. That process is contracting the middle class - it's not contracting due to eg increased poverty, as poverty in the US has gone down over time. The sole reason there has been any net expansion in the bottom economic tier, is due to extreme low skill / low wage labor importation since the late 1970s.
[1] https://www.washingtonpost.com/opinions/is-the-middle-class-...
[2] https://i.imgur.com/TwQhMaT.png