While the poor have felt the brunt of the recession, the US middle-class is being eroded at a scary rate. But the lower-end of the middle class in particular has fallen off a cliff. Those that strive for the ‘American dream’ have been pushed back into dire poverty.
“We are seeing many families that never before sought government help,” said Greg Blass, commissioner of Social Services in Suffolk County on eastern Long Island.
“We see a spiral in food stamps, heating assistance applications; Medicaid is skyrocketing,” Blass added. “It is truly reaching a stage of being alarming.”
Normal recessions affect the marginal population. Consequently, recoveries from normal recessions are quite strong because the marginal worker is easily and quickly re-absorbed back into the work force.
Today’s economic spiral of massive and lasting unemployment, homelessness, and state dependence could send the US economy on a weak trajectory for years. Negative spirals are what turn recessions into impossible quagmires (aka depressions).
Source: Associated Press
-
Denise Brown
