New America Foundation

1
New America Foundation
High Oil Prices, Plummeting Home Values and the
State of Middle Class America
Tom Gallagher, CFA ISI Group June 25, 2008
2
Two perspectives on the economic outlook for the
middle class

• Cyclical No recession, no recovery
• Secular Will 08 be the reverse of 80?

ISI Group
3
ISI Group
4
ISI Group
5
ISI Group
6
ISI Group
7
Voters Lean to Bigger Role for Govt
Statement A Government should do more to solve
problems and help meet the needs of people,
or Statement B Government is doing too many
things better left to businesses and individuals.
Source NBC/WSJ.
ISI Group
8
Source http//elsa.berkeley.edu/saez/TabFig2006
prel.xls
ISI Group
9
Source Unequal Democracy The Political Economy
of The New Guilded Age, Larry M. Bartels
ISI Group