Many expected that the severity of the Great Recession, recognition that the prior expansion was largely based on unsustainable bubbles, and an anemic post-crisis recovery, would lead to serious discussion about the need to transform our economy. Yet, it hasn’t happened.
One important reason is that not everyone has experienced the Great Recession and its aftermath the same. Jordan Weissmann, writing in the Atlantic, published the following figure from the work of Edward Wolff. As of 2010, median household net worth was back to levels last seen in the early 1960s. In contrast, mean household net worth had only retreated some ten years.
The great disparity between median and mean wealth declines is a reflection of the ability of those at the top of the wealth distribution to maintain most of their past gains. And the lack of discussion about the need for change in our economic system is largely a reflection of the ability of those very same people to influence our political leaders and shape our policy choices.