The biggest news in employment, education and foreign developments add up to a lost year for the middle
By almost every measure, 2011 was a lost year for the American middle class. Who is to blame depends on your political view. What follows is an attempt to sum up the major developments and missed opportunities of the year gone by. For me, the following areas represent the most serious perils facing middle class Americans.
- Jobs: Economists generally agree that the single most effective way to revive the American middle class is to create more high-paying, stable private sector jobs. The unexpected emergence of 140,000 new private sector jobs in November helped drop the unemployment rate to a two-and-a-half-year low 8.6 percent, but the rosier figure was aided by 315,000 people who gave up and stopped looking for work last month. The most important factor of all -- the quality of the new jobs -- was unclear. Governments, meanwhile, slashed 20,000 public sector jobs across the country and deadlock in Washington blocked both Obama's $447 billion jobs plan and Republican job creation proposals.
- Fiscal order: Economists also generally agree that a bipartisan plan to seriously address the $1.7 trillion federal deficit could increase business and consumer confidence, strengthen the economy and potentially create jobs. The year began with hopes that the bipartisan Simpson-Bowles plan might gain traction in Washington. Yet President Obama and Republican leaders both failed to embrace it. Months of disastrous partisanship followed, from the summer default brinksmanship, to the fall failure of the Congressional super-committee to the prolonged deadlock over how to fund payroll tax cut and unemployment insurance extensions.