A few illustrations tell the story. The real wage rate has declined in the past two decades so that the real wage rate is lower today than two decades ago. The average annual rate of growth has fallen steadily during the last three decades. The level of unemployment has remained high and sticky. It is consistent with and a part of the global situation.
Unemployment rises around the world, and the outlook remains dim.
More people are out of work than ever before, according to the International Labor Organization. The level of savings and investment in the US is low and there is little sign of its improvement. Federal government, the source of public investment that eventually promoted private investment, is handicapped with the large budget deficit so that government investment in technology, infrastructure, and research has dwindled. The neo classical theory misses this reality of a relationship between society and economy. It maintains the fiction that social problems are independent of the economic decline and in no way impinge upon the economy.