Arianna Huffington Says Federal Government Has Failed the American Middle Class

Sept. 7, 2010— -- Arianna Huffington says that the Obama Administration has failed to take decisive action during the economic crisis, threatening the existence of the American middle class.

"There's no question that the Obama Administration really underestimated the economic crisis," Huffington, the creator of the Huffington Post and a liberal commentator said in an interview with ABC's Diane Sawyer set to air tonight on "World News."

"Remember, we had been told that after the stimulus passed, we would actually manage to get unemployment down to around eight percent. Well not only did that not happen, but the chances of double-digit unemployment are growing," added Huffington, who also takes aim at Republicans.

Huffington pointed to the flood of foreclosures as another massive failure by the Obama Administration. Some 2.8 million households received foreclosure notices in 2009, a record that could be matched or even surpassed this year.

"As a mother, I feel the idea of having to move your kids from your home into a motel -- or often a homeless shelter -- is so devastating," Huffington said. "And seeing the impact this is going to have on a whole generation of children as they're growing up like that makes me really disturbed about the fact that the administration did not do more to prevent foreclosure."

In her new book, "Third World America," Huffington outlines alarming statistics about the struggling middle class. The middle class is disappearing and the American dream is dying, Huffington says, but there's still time to do something about it.

Click here to learn more about "Third World America"

"The foundation of American prosperity, but also the foundation of American democracy has been the middle class," Huffington said. "Because without a middle class, we become a third world country of extremes. You know, the very rich and the very poor, which increasingly is everyone else."

Huffington argues that the trend has been going on for decades, but the middle class crisis has only gotten worse with the nation mired in recession.