I believe that the central challenge, politically, for our age can best be expressed in a single graph from the Economic Policy Institute.

Quite simply, in real dollar terms, wages have been effectively flat for 30 years. This effect has been masked by easy credit, and a real estate bubble, but the underlying core condition is a grave one.

What cannot go on will not go on, House prices cannot rise forever and a consumer driven economy cannot survive if the consumers do not posses the excess money to go out and consume.

I propose no solutions. I know of no magic wand that will reunite these tends but something will happen. Whichever political party or ideology that finds and implements a solution to this will reap tremendous benefits, those that stick their heads in the sand are likely, in the long run, to get their asses kicked.