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Shocking

"The lead on a front page Wall Street Journal article today, entitled "As Middle Class Shrinks, P&G Aims High and Low," was nothing less than shocking:  "'For generations, Procter & Gamble Co.'s growth strategy was focused on developing household staples for the vast American middle class.  Now, P&G executives say many of its former middle-market shoppers are trading down to lower-priced goods—widening the pools of have and have-not consumers at the expense of the middle.'"  

 

The point of the article: so many Americans are falling out of the middle class, that P&G has to increase the number of bargin priced products that it makes BECAUSE as the middle class shrinks and shrinks there's no one to buy their regularly priced products.

The article tracks the devistation of the middle class in terms of rising income disparity, declining middle-class income and consumer confidence, as the attached graphs from the article show.

While the article is really about how a giant corporation adjusts to it's target consumers falling farther and farther behind, the real story is what is happening in America to what used to be a healthy, secure and growing middle class now that it is shrinking and has a bleak future.  The economic, social and political implications of this are just barely beginning to be thought about, but will reverberate throughout American and the world for decades to come. 

Read the full article here

 

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