NYT: In the business world, the middle class melts away

[Omaha Steve]

http://www.omaha.com/article/20140204/MONEY/140209544/1697#in-the-business-world-the-middle-class-melts-away

PUBLISHED TUESDAY, FEBRUARY 4, 2014 AT 1:00 AM / UPDATED AT 5:18 PM

The New York Times

In Manhattan, upscale clothing retailer Barneys will replace bankrupt discounter Loehmann’s, whose store closes in a few weeks. Across the country, Olive Garden and Red Lobster restaurants are struggling, while fine-dining chains like Capital Grille are thriving. And at General Electric, the increase in demand for high-end dishwashers and refrigerators dwarfs sales growth in mass-market models.

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.

“Those consumers who have capital like real estate and stocks and are in the top 20 percent are feeling pretty good,” said John G. Maxwell, head of the global retail and consumer practice at PricewaterhouseCoopers.

FULL story at link.

[Laelth]

1. k&r for the truth, however depressing it may be. n/t

-Laelth

[PasadenaTrudy]

3. Lol!

I wish I had a penny for every time you say that

[Laelth]

4. So do I. LOL. n/t

-Laelth

[Warren Stupidity]

2. 19% of the top 20% don't have much in the way of disposable income either.

The skew is so extreme at this point that the media routinely misstates it.