03 Feb

Another sign of the death of the middle class?

Corporate America is already pivoting to serve higher and lower class America on the assumption that middle America is squeezing out:

“As politicians and pundits in Washington continue to spar over whether economic inequality is in fact deepening, in corporate America there really is no debate at all. The post-recession reality is that the customer base for businesses that appeal to the middle class is shrinking as the top tier pulls even further away.

If there is any doubt, the speed at which companies are adapting to the new consumer landscape serves as very convincing evidence. Within top consulting firms and among Wall Street analysts, the shift is being described with a frankness more often associated with left-wing academics than business experts.”

(Via The Middle Class Is Steadily Eroding. Just Ask the Business World. – NYTimes.com.)

Strikes me as rearranging deck chairs on the way down. How about paying the people who work for you more and getting out of a quarterly mindset so as to reinflate the phenonoma that created a very prosperous half century or so?