When President Obama declared in December that gross inequality is the “defining challenge of our time,” he was right, and resoundingly so. As is his habit, however, he quickly backed away from the idea at the urging of pollsters and various Democratic grandees.

I can understand the Democrats’ fears about venturing into this territory. It feels like a throwback to an incomprehensible time — to a form of liberalism that few of them understand anymore. Unfortunately, they really have no choice. Watching first the way the bankers steered us into disaster in 2008 and then the way they harvested the fruits of our labored recovery — these spectacles have forced the nation to rediscover social class, and as we dig deeper into the subject we are appalled to learn what has been going on for the last three decades.

I was born in a comfortable middle-class America of the postwar years, the “affluent society” you hear about sometimes, and the shattering of that social order has been the story of my entire adult life. “Inequality” is an inadequate word for the Big Smashup, but we need some term to describe all the things that have gone to make the lives of the rich so superlative and the lives of people who work so shitty and so precarious. It is visible in the ever-rising cost of healthcare and college, in the deindustrialization of the Midwest and the ballooning of Wall Street, in the power of lobbying, in the dot-com bubble, in the housing bubble, in the commodities bubble. It was made possible by the signal political events of our time: the collapse of the New Deal coalition; the decline of labor; the infernal populism of the New Right; the fall of antitrust and the triumph of deregulation; the rise of Ronald Reagan, and after him Newt Gingrich, and after him George W. Bush, and after him the Tea Party, all of them bringing their pet tax cuts with them to Washington.

The word is a polite one, but “inequality” is what we say when we mean to describe the ruined downtown of your city, or your constant fear that the next round of layoffs will include you, or the impeccable air conditioning of your boss’s McMansion, or the way you had to declare bankruptcy when your child got sick. It is a pleasant-sounding euphemism for the Appalachification of our world. “The defining challenge of our time”?: Oh, yes....