From former Clinton administration Secretary of Labor and current UC Berkeley Professor of Public Robert Reich, writing at his blog [and complementing out Charts of the day]:
Median family income was $49,600 in 2007. By 2010 it was $45,800 – a drop of 7.7%.
All of the gains from economic growth have been going to the richest 1 percent – who, because they’re so rich, spend no more than half what they take in.
Can I say this any more simply? The earnings of the great American middle class fueled the great American expansion for three decades after World War II. Their relative lack of earnings in more recent years set us up for the great American bust.