Wage Stagnation Is to Blame for America's Financial Problems

In The Atlantic 's May issue, Neal Gabler explores his own financial troubles for clues as to why so many Americans are struggling to remain financially solvent. We reached out to some of the leading scholars of the American middle class to ask what they make of Gabler's analysis. Edward Wolff, an NYU professor of economics, points to wage stagnation as the central factor: The ultimate culprit is wage stagnation, occurring now for over 40 years (average real wages peaked in 1973). This translates into income stagnation. For a while (until about 1990 or so) families compensated for stagnant......(read more)

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