In the U.S., Downward Mobility and Vulnerability Is a Widely Shared Experience

By Joseph Stiglitz

October 14, 2014 | NEW YORK -- Two new studies show, once again, the magnitude of the inequality problem plaguing the United States. The first, the U.S. Census Bureau's annual income and poverty report [2], shows that, despite the economy's supposed recovery from the Great Recession, ordinary Americans' incomes continue to stagnate. Median household income, adjusted for inflation, remains below its level a quarter century ago.

It used to be thought that America's greatest strength was not its military power, but an economic system that was the envy of the world. But why would others seek to emulate an economic model by which a large proportion -- even a majority -- of the population has seen their income stagnate while incomes at the top have soared?