I think there are number of factors the lead to current trend of shrinking middle class.

One that is often overlooked is that as people have become more assimilated they are generally LESS likely to think of entrepreneurship.


Those of you who are 4-6 generation Americans or less, think about the stories you heard about previous generations owning businesses...often out of necessity because of prejudice towards their group from Americans who had been here longer.

Older generation smartly pushed their kids to get formal education and enter the mainstream. Somewhere along the way people lost the entrepreneurial spirit , and as the economy has contracted the job opportunities just aren't there anymore.

Old school guy who owned a pizzeria predicted this to me when I was a kid. He said today's kids were like house cats, who were declawed. Put them out in nature and they will starve.