The Disappearing Middle Class

Check out the numbers in this article by Robert Reich. They show the middle class' erosion of purchasing power over the years.

"In the late 1970s, the richest 1 percent of American families took in about 9 percent of the nation’s total income; by 2007, the top 1 percent took in 23.5 percent of total income. " OUCH!

The article also discusses how the middle class has dealt with this over the years. It's hard to see what the disappearing middle class can do next to boost family income. The implication is a long term drop in consumer buying. Very consistent with PIMCO's new normal.