A new report highlights a disturbing trend: heightening economic insecurity over the last 25 years.

The report, which draws on a variety of Census and Federal Reserve data, notes that in 1985, 12.2 percent of Americans experienced an economic loss sufficient to render them economically insecure. During the recession of the early 2000s, the insecurity rose to 17 percent; today it is 25 percent.

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There are many factors complicit in the increased agitation of the American middle class, from declining real wages to the three-decade erosion of pensions and health plans and the new insistence of corporate boards on reducing company matches for 401(k) plans.

Overall income and family wealth has grown during this time. But the gains are far from equal. After-tax income rose by 21 percent for the middle fifth of American households, but increased by 112 percent for the richest 10 percent of households and by 256 percent for the top 1 percent, according to Mr. Hacker’s report.

Obviously the economy is very complicated. Is it really reasonable though to assume that the the middle fifth, top ten and one percent are being compensated in line with their contributions to the economy? Maybe the middle is.

I'd submit that in the real world politics plays a large part and wealth is being redistributed upwards as a matter of policy.

An insecure lower and middle class will lower labor's bargaining power, which in turn will make it more difficult for labor to raise real wages and fight for its fair share of a growing pie. Which will in turn make the lower orders more insecure and anxious.

Today the Senate Republicans and Federal Reserve Bank are deliberately weakening labors' bargaining power by keeping unemployment high - the Republicans by refusing further fiscal stimulus and the Fed by refusing further monetary stimulus.

And by weakening labor's bargaining power, they redistribute wealth upwards to the richer, speculative classes and heighten inequality.