Econ4’s Jerry Friedman looks at the changing composition of demand in America:
While Sears and J.C. Penney drift towards bankruptcy, Nordstrom and other luxury brands flourish. Rather than depending on sales to working-class and middle-class consumers American corporations are doing very well selling to rich consumers, here and abroad. Rather than promising workers high wages to ensure productivity, they maintain labor discipline through fear.
Read his piece here.