Ten years after the crisis and more than nine years after QE began, the American economy is still not doing much better.
“The gap between the rich and the poor is getting wider, the top one has grabbed most of the wealth of the society, the income of the remaining 99% has not changed much, and the number of the middle class is shrinking, which is the fundamental reason why the American economy has not improved in recent decades.” Mr. Buffett made the point in an interview about the fundamentals of the U.S. economy.
The gap between rich and poor has widened over the past three decades, according to bank of America merrill lynch. The top 0.1 per cent of households are already worth as much as the remaining 99 per cent.
Mr Trump won more votes than Mrs Clinton largely because he had the support of the underclass, without whose votes he could not have come to power. And the people at the bottom of the heap chose Mr Trump precisely because they were so unhappy with the us economy in recent years. The middle class in the United States has fallen from 70 percent to 50 percent in recent years, according to research by professional organizations.
With the rapid development of artificial intelligence and robots, the polarization between rich and poor will be intensified and the living standard of ordinary people will be lowered. Machines dominate, and there is no need for so many workers at the bottom. Relatively senior workers, engineers to retain jobs.
For the bottom of the American people, there are fewer and fewer good jobs, and they can get employment, but the salary does not rise for more than ten years, that is, the level of hunger can not die, and the polarization between the rich and the poor intensifies. It was bankers and Wall Street people who got rich.
Starting a business used to be the way to get into the middle class in America, but becoming independent is harder than ever. Government policies and high taxes have killed many small businesses and entrepreneurs, and there seems little hope of that changing anytime soon.
Hong Kong’s wind news agency previously reported that “winner-take-all unicorns are killing the American economy”. Many industries in the United States are becoming increasingly concentrated, and a few oligopoly companies monopolize the whole industry, making it difficult for start-ups to develop. Moreover, in the recruitment market, they are the only buyer’s market, and it is difficult for candidates to have more choices, they can only be exploited.
Zerohege, a prominent us business blog, commented, “America needs a cultural change that means going back to the values and principles that this country was founded on in the first place. If it continues on its current path, the middle class will continue to deteriorate and the country as a whole will decline.