Floyd Norris, writing in the New York Times, shows that in recent years corporate profits have risen as workers' incomes have declined (even including the dramatic rise of benefits, especially medical benefits, for those fortunate enough to have benefits. :
Retail sales are up significantly in July over the previous year. Yet, The Financial Times
argues that this "conceals a bleaker picture in which a conspicuous minority of wealthy shoppers are outnumbered by a beleaguered majority."
The budget deficit is a serious problem--but we have more pressing problems at the moment. If we do not invest in infrastructure, research, and education both as a current stimulus and as a long term investment, we risk losing our global competitiveness.