As the US economy slowly rebuilds and the smoke from
four years of charred capital starts to dissipate, we can discern the
shape of the next 20 years of job growth. What we see is an economy
unlike any we’ve ever known.
The recovery needs to be revolutionary, because our most recent
financial meltdown laid bare a fundamental change in the US economy.
Since sometime in the 1970s—economists generally agree on the trend, if
not the exact date—the US has been increasingly divided into two groups:
those whose economic fortunes grow and those whose wages stay stagnant.
This divide has many potential causes, including the rise in global
trade, technological advances, the decline in unions, and slowing growth
in education. But the full impact of these shifts was long masked,
first by the stock market bubble and then by a massive credit and
housing bubble, which flooded the economy with money we hadn’t really
earned. For nearly 20 years we felt richer than we were.