12 Pages


As this book goes to press, the economy is in an expansion, but many of the economic problems first evident in the 1980s continue to be felt. For example, despite growth in both gross domestic product and employment between 1989 and 1995, median family income in 1995 was still $1,438 lower than it was in 1989, suggesting that overall growth does not, under current economic circumstances, lead to improved economic well-being for typical families. The 1980s' trends toward greater income inequality and a tighter squeeze on the middle class show clear signs of continuing in the 1990s.