The question of entitlement society in America is a real one, what I don't know is who is creating it. Middle class and lower income less skilled workers until roughly the late 1970s have always seen business producty gains reflected in rising income and benefits. They were able to provide for the family. Especially since 1980 that all changed.
Since the Regan revolution, wealth flew to the top 1% of Americans. The bottom 90% saw minimal improvement.
For decades, productivity and compensation rose in tandem. Their bond was the basis of the social compact between the economy and the public: If you work harder and better, you and your family will be better off. But in the past few decades, and especially during the past 10 years or so, the lines have diverged. This is slippage No. 1: Productivity is rising handsomely, but compensation of workers isn't keeping up.
True, compensation is still rising, on average. But the improvements are spotty. Production and nonsupervisory workers--factory, retail, and clerical workers, for example--saw productivity gains disappear from their paychecks much earlier and got hit harder than did supervisors and professionals. Over the past 30 years or so, their compensation has hardly risen at all.
"This is something that has been happening and building for years and is now really rooted in the economy, and it's vicious," said Lawrence Mishel, president of the Economic Policy Institute, a liberal think tank in Washington. "There's a remarkable disconnect. The problem isn't a lack of the economy producing sufficient income to make everybody's living standards improve--it's that the economy is structured so that the majority don't benefit." Or, to state the point more cautiously, the majority doesn't benefit from productivity gains very much--certainly, less than our parents and grandparents did.