Sept 20th, 2011
The chart below from EPI tracks the American poverty cycle since 1979. We are just slightly below the two previous peaks in that period. There is, however, a fundamental difference between now and then. The two booms that temporarily reduced the overall rate in the last three decades were illusory and built upon variations of the same unsustainable model. The markets, as we have been pointing out recently, are no longer working.