In 2012, median household income in the USA was flat.
Adjusted for price inflation, it was down 9% since 1999: the Clinton era. It is where it was in the late 1980s: early Bush I.
All this has happened under Keynesianism. The engine of economic development has gone flat for 80% of Americans.
Those in the top 20% have improved since 2009, but they are still not doing well. The government’s recovery has yet to restore the upward momentum of 2007. The boom is gone. There is no sign that it will return.
According to Keynesian economic theory, none of this should have happened. The federal government is supposed to be able to manage the economy, so that recessions are short and mild. But that theory was blasted by the recession of 2008-9. The recovery has not done anything for the vast majority of Americans.
Keynesians are still dominant in American government and the university classrooms. Old dogs do not learn new tricks. Government-subsidized old dogs are paid not to learn new tricks. But reality still cannot be waved away by Keynesian slogans. The federal budget deficit remains high. So does the purchase of government debt by the Federal Reserve System. So does unemployment.
The old Keynesian formulas are not producing what the Keynesians always promised: steady economic growth for the entire economy. The elite is doing a little better. The average (median) American family is not.