The period of greatest growth in the United State's recent history, the 1940s, coincided with the rise of the middle class.
Many manufacturing jobs that have been exported abroad during last 30 years were good paying jobs. Consumption levels and standard of living--as measured by material possessions--rose during same period, as result of cheap imported goods. But easy credit--in part fueled by the housing boom--and financial speculation ended in the crash of 2008 and the ensuing recession.
Executive compensation
During last three decades executive compensation increased from approximately 24 times the salary of the average worker to close to 300 times. Hedge fund managers can be paid a billion dollars a year for activities that don't add any value to the real economy.
In July 2009, New York attorney general Andrew Cuomo revealed that even as Citigroup was declaring $65 billion in losses and taking in $45 billion in taxpayer aid, it paid $44 million in bonuses to the top four executives and $37 million to the next four.
Rewarding failure
Big Brother came to the rescue throwing away taxpayer money to the richest one percent of the population--the financiers--, and rescued failed companies such as Chrysler, GM, insurance giant AIG, and mortgage companies Freddie and Fannie Mae, uncovering the myth of "free enterprise." There still is free enterprise for poor and middle class, but giant monopolies enjoy government protection. Problem is government money is not free and interest payment in U.S. debt will soon become the biggest budget item.
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