The Changing Labor Market in the US Economy

The Atlantic magazine came out with a news article about the Rise of the New Global ElitesThe decline of the West started with the rise of the developing world. A US-based CEO of one of the world’s largest hedge fund told a writer for the Atlantic that the hollowing out of the American middle class didn’t really matter, if the transformation of the world economy lifts people out of poverty into the middle class. On a very serious note, it’s harder to argue that an American is inherently more important than someone from the developing world.

In a Plutonomy there is no such animal as “the U.S. consumer” or “the UK consumer”, or indeed the “Russian consumer”. There are rich consumers, few in number, but disproportionate in the gigantic slice of income and consumption they take. There are the rest, the “non-rich”, the multitudinous many, but only accounting for surprisingly small bites of the national pie.