Middle earners could be on the verge of a secular stagnation in their real incomes. In many advanced economies the benefits of GDP growth appear to be increasingly concentrated on the providers of capital and the top end of the income spectrum. Last week, in his State of the Union speech, President Obama announced a year of action on inequality. A prolonged squeeze on the economic prospects of middle earners, who are often decisive in elections, will complicate the politics of recovery and have profound implications for both government policies and business.
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