Not according to a new study released by the Center for American Progress. The report points out that, while the US has experienced decades of stagnation for lower and middle class wages, some economies similar to the US have avoided the worst of the stagnation. And were not referring to European social democracies, either. Two shining examples are those Anglo bastions of capitalism, Canada and Australia:
What are Canada and Australia doing differently? For starters, they are doing a better job with mass education. They have near-universal preschool, and they both do more to get low-income students through college. In Australia, college is free. “Increasingly,” the report says, “a college education is similar to the high school education of the past — necessary for a prosperous life.”
As the report indicates, their approach goes beyond education to include other aspects of social policy. Dave Leonhardt’s summary from the New York Times’ Upshot blog is found here.