The Middle Class Is Steadily Eroding. Just Ask the Business World.

By EmmaZahn on Mon, 02/03/2014 - 6:02pm |

As politicians and pundits in Washington continue to spar over

whether economic inequality is in fact deepening, in corporate America

there really is no debate at all. The post-recession reality is that the

customer base for businesses that appeal to the middle class is shrinking as

the top tier pulls even further away.

If there is any doubt, the speed at which companies are adapting to

the new consumer landscape serves as very convincing evidence. Within

top consulting firms and among Wall Street analysts, the shift is being

described with a frankness more often associated with left-wing academics

than business experts. ...

Investors have taken notice of the shrinking middle. Shares of Sears

and J. C. Penney have fallen more than 50 percent since the end of 2009,

even as upper-end stores like Nordstrom and bargain-basement chains like

Dollar Tree and Family Dollar Stores have more than doubled in value

over the same period.

URL:

http://www.nytimes.com/2014/02/03/business/the-middle-class-is-steadily-eroding-just-ask-the-business-world.html?_r=0

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