U.S. Economy Not So Great, Even Before This Recession

Our economy is shrinking, inflation is increasing, and it looks like it's time to tighten our belts and settle down for the worst. But were the times we are leaving really so great to begin with?

For the first time since we've been paying attention to such numbers, the median family income (from 2000 to 2007) has actually decreased during a period of economic growth. Real median family income more than doubled from the late 1940s to the late ’70s. It has risen less than 25 percent in the three decades since.

According to New York Times writer David Leonhardt, "the larger point is still crucial: the modern American economy distributes the fruits of its growth to a relatively narrow slice of the population."

A responsible economy wouldn't allow this to happen. What's going wrong?