This recession will probably have its own social profile. In particular, it\u2019s likely to produce a new social group: the formerly middle class. These are people who achieved middle-class status at the tail end of the long boom, and then lost it. To them, the gap between where they are and where they used to be will seem wide and daunting.<\/p>\n
The phenomenon is noticeable in developing nations. Over the past decade, millions of people in these societies have climbed out of poverty. But the global recession is pushing them back down. Many seem furious with democracy and capitalism, which they believe led to their shattered dreams. It\u2019s possible that the downturn will produce a profusion of Hugo Ch\u00c3\u00a1vezes. It\u2019s possible that the Obama administration will spend much of its time battling a global protest movement that doesn\u2019t even exist yet.<\/p>\n
In this country, there are also millions of people facing the psychological and social pressures of downward mobility.<\/p>\n
In the months ahead, the members of the formerly middle class will suffer career reversals. Paco Underhill, the retailing expert, tells me that 20 percent of the mall storefronts could soon be empty. That fact alone means that thousands of service-economy workers will experience the self-doubt that goes with unemployment.<\/p>\n