Middle class decline in post-industrial society

Abstract

It is argued that the development of a post-industrial society entails problems with the maintenance of effective demand, economic growth, middle class economic growth and middle class aspirations. This is because of a relative decline in traditional middle class, skilled manual and middle income occupations. The development of predominantly service-based employment adds more lower skilled and paid jobs than any others to the work-force. Income polarization is also increased by the addition of smaller numbers of higher professional, managerial and paid employment. The relative difference between higher and lower incomes is greater in the developing service industries than in more traditional manufacturing sectors. These propositions are illustrated by data for the United States as a whole and in greater detail by data for San Francisco, Oakland and San Jose.