As a follow up to Darwin’s post, I think it’s important to note that what the Financial Times calls the Great Stagnation is not just limited to the United States. Growth slowed throughout the developed world after 1973, and in fact slowed more in Europe than it has in America.
Here, for example, is a bit of an article from before the current crisis about wage stagnation and the decline of the middle class in Europe:
The European dream is under assault, as the wave of inflation sweeping the globe mixes with this continent’s long-stagnant wages. Families that once enjoyed Europe’s vaunted quality of life are pinching pennies to buy necessities, and cutting back on extras like movies and vacations abroad.
Potentially more disturbing — especially to the political and social order — are the millions across the continent grappling with the realization that they may have lives worse, not better, than their parents.