The payoff is nowhere to be seen, in turn, as a result of processes sketched out more than thirty years ago in a forgotten classic of political economy, Paul Blumberg’s 1980 study Inequality in an Age of Decline. Analyzing the downward spiral of the American economy in the 1970s—the last time, please note, that soaring energy prices clamped down on an industrial society—Blumberg showed that while a rising tide lifts all boats, a falling tide behaves in a much more selective fashion, as those groups with more political influence and economic clout are able to hang onto a disproportionate share of a shrinking pie at the expense of those with less.
The decades since Blumberg’s book appeared have only sharpened his argument. One after another, nearly every economic sector has undergone drastic reorganizations that slashed jobs, pay, and benefits for everyone below the middle class, and a growing number of people in the lower end of the middle class itself. Now that everyone below them has been thrown under the bus, the middle classes are discovering that it’s their turn next, as the classes above them scramble to maintain their own access to the payoffs of privilege. Having nodded and smiled while those further down the pyramid got shafted, the middle classes are in no position to mount an effective resistance now that they’re the ones being made redundant. I can almost hear a former midlevel manager in an unemployment line saying: "First they laid off the factory workers, but I said nothing, because I wasn’t a factory worker..."
