link here to article
Its somewhat remarkable that many smart people don't understand why the economy has not recovered like it has in previous recessions. The answer is simple. The middle class has lost $7.8 trillion of their wealth in housing and their wages have not grown with rising productivity. They can no longer borrow against their home equity to finance a life style that is not supported by wages. This is a problem that cannot be fixed by educating American's for the jobs of the future as Obama has proposed. The problem is a lack of jobs that provide the income necessary for the traditional middle class pattern of consumption.
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