Well, it is true that globalization hurts the US middle class. Basically the argument in favor of globalization that economists use is that basically it is beneficial at a national level for the USA to exploit Chinese labor. The cost savings obviously go into the pocket of the executives. The people who lost their jobs get nothing. Obviously the same thing happens to every industry to varying degrees. Those who don't lose their jobs can still see their wages stagnate also known as deflation. The central bank then tries to combat the deflation by injecting money into the economy. It doesn't work: Inflation doesn't go up for anything other than housing, education or health insurance. That can only mean one thing. Prices that do not go up are not dictated by the local economy. If inflation would happen in the US and increase widget prices from $4 to $5 then production simply shifts to a country that can indeed produce the widget for $4.

If what I explained above is true, then it's time to rejoice. It means that the problems the middle class suffers from are temporary until every other country has been lifted out of extreme poverty. All we have to do is wait until the race to the bottom is over.

However if what I said is wrong, then it's time to be sad. There is no easy solution and the middle class might never get back on track.