It seems to me that this chart is the key to understanding today’s political economy:
Virtually every single member of congress, every senator, every Capitol Hill staffer, every White House advisor, every Fed governor, and every major political reporter is a college graduate. What’s more, we have a large amount of social segregation in the United States—college graduates tend to socialize with each other. And among college graduates, there simply isn’t an economic crisis in the United States. This is not the best of times, but it’s perfectly rational in gradland to be balancing concern about the labor market situation with dozens of other concerns. If you did anything, you’d probably step in to prevent teacher layoffs, which is a clear and present danger to a large bloc of college graduates. But beyond that, no need to panic.