Income inequality is the main US economic development of the past 40 years. While the very rich 1% got very much richer, the other 99% either tread water or sank further into poverty.
Inequality remains well worth attacking, but in 2012, the main problem is with the 2%, that is the ridiculously low inflation target being defended on both sides of the Atlantic at the cost of millions being unemployed.
Euroland is heading for the abyss because the Germans can’t or won’t do anything to address the competitive imbalances between Club Nord and Club Med.
America is accepting, for no good reason, that unemployment must remain unacceptably high for a decade or more.
Nothing much will change until the US heads back into recession (still a possibility that may derail Obama’s reelection and guarantee 10 more lost years of Know Nothing stupidity) and/or the Spanish, Irish, et. al. decide that preserving their sovereignty and their countries is far more important than paying off French, German, and Dutch banks.
Gorilla says: “It’s the 2% skim that makes the outlook so grim!”