A comment on Michael Spence’s most recent paper for the Council on Foreign Relations in the Reuters Blog .
The gist of the problem analyzed by Spence and co-author Sandile Hlatswayo:
“The most educated, who work in the highly compensated jobs of the tradable and non-tradable sectors, have high and rising incomes and interesting and challenging employment opportunities, domestically and abroad. Many of the middle-income group, however, are seeing employment options narrow and incomes stagnate.”
Conclusion of the Reuters’ post editor (Chrystia Freeland):
“American politicians in both parties are focused on a budget debate that is superficial, premature and ultimately about something pretty easy to figure out. Instead, we should be working on the much bigger problem of how to make capitalism work for the American Middle class.”
The point is well taken. This is precisely the impression that this European reader gets from the daily browsing of American media.