About the film

Two American Families examines the impact of economic change over the twenty year period 1993 –2013 on two American ‘middle class’  families—the Stanleys and the Neumanns—in the declining industrial city of Milwaukee. The award- winning team who produced this film have collaborated on a number of documentaries, including Surviving the Good Times and America’s River -Bill Moyers on the Hudson.

With Two American Families, their goal was to “to go where very few filmmakers had gone before, and simply show, in a very personal way, the effects of changes in the American economy over the last several decades on real American working people”.

Being invited into the homes and meeting these two families “sealed the deal” for the production team.

Their stories and struggles are personal and particular, but the challenges they have faced in the changing economic landscape are common to many millions of Americans in many towns and cities throughout the USA. 

It is the semi-skilled, medium-income jobs that  have increasingly disappeared from the US  job market. Allied with that has been the decrease in semi- and unskilled jobs that provide benefits:  for example, health care  and retirement plans.

The economic position of the  US “middle class” has declined—not only relatively compared to the wealthy, but also absolutely in terms of disposable income and earning power. For example, according to Robert Reich:

• 1978: ‘typical male worker’ earned $48,302;

• 2010, earned 33,751.

• 1970s:  $35,143 median disposable income; housing cost 15,579; healthcare, 1,686; college, 903.

• 2010:   $26,578 median disposable income; housing cost 21,684; healthcare, 7,082; childcare, 3,005; college, 1,833.

Union membership was a key means of protecting and enhancing the earning power of the middle class, but that has significantly declined (from 35% in the 50s to 11.3% today).campaigning, it has laid the groundwork for a change in the discourse: specific issues such as ‘pre-existing conditions’, high deductibles, co-payments and drug costs.  the scandals of ‘surprise billing’, etc.

While the growth of two income households also mitigated the decline in individual (traditionally male) earning power, in recent years households have dramatically increased their reliance on debt to maintain their standards of living. In 1969, the ratio of debt to household income was 1:1; by 2008, it had risen to 12:1. 

The financial crisis and collapse of house values in many areas meant that this debt burden became a crisis for many Americans. 

 

 

 

The financial crisis and collapse of house values in many areas meant that this debt burden became a crisis for many Americans. 

Technological change, financialization of the economy, outsourcing and movement of jobs –especially manufacturing—to areas and countries with lower labour costs have all reshaped the job market. 

In Milwaukee as in many other cities, secure ‘middle income’ jobs have been shrinking and most of this has been due to the decline in manufacturing. Milwaukee has suffered a 40 percent decline in manufacturing jobs since the 1970s when Schlitz, Pabst and American Motors reigned. 

From 1970 to 2007, the percentage of families in the Milwaukee metropolitan area that were middle class declined from 37 to 24 percent, poor households grew from 23 to 31 percent and affluent families grew from 22 to 27 percent. In short, Milwaukee’s middle class families went from a plurality to its smallest minority.  Complicating this is the fact that Milwaukee is currently the most racially segregated city in the USA.

This decline of manufacturing and of  stable middle class neighborhoods is replicated throughout the USA; the share of American families living in middle-class neighborhoods dropped from 65% in 1970 to 44% in 2009.

Reich and others,  arguing  against  ’trickle down’ analyses,  see  the American middle class as the driver of  economic growth and prosperity.  Since poor and middle income households spend money on consumer goods rather than on assets,  increasing their incomes generates a consumer demand that can provide a more stable base for growth.

This film raises a host of issues that are important to explore and also generates questions about what other issues need to be addressed—aside from the job market. 

For example, Matthew Desmond in his recently published book  Evicted, which is based on research in  Milwaukee, points to the centrality of affordable housing in combating inequality and poverty. He argues that that there is a crisis in affordable housing that is driving the poor “to financial ruin and even starting to engulf people with moderate incomes” .

Other issues to consider include: for example, how have  other cities managed, successfully or not, their similar crises?  what  are the roles of communities and  extended kin networks in helping people develop means of coping ? 

In the primaries issues of wealth and income equality has been central to debates. The ‘hollowing out’ of the US middle class has been a focus.  The General Election will undoubtedly see divergent  explanations and policy proposals.  How can we  contribute to  those discussions?