Posted on 12/26/2007 2:53:16 PM PST by bruinbirdman
Leading liberal thinkers tell a compelling tale of middle-class decline. Pity it isn't true, says Stephen Rose, an economist and author.
One myth is that the middle class's standard of living stagnated while the dot-com boom made the super rich even richer. Not really, says Rose:
** In fact, the U.S. economy hands out wealth far more evenly. Per capita gross domestic product has increased by more than 65 percent since 1979 -- growth that translates to $26,000 per household.
** If all that money had gone to the richest 10th of the population, it would now hold more than 60 percent of the national income.
** That's nearly twice as much as the super rich actually have, according to the best census surveys available.
In addition, the middle class is not shrinking:
** True, fewer people today live in households with incomes between $30,000 and $100,000 (a reasonable definition of "middle class") than in 1979.
** But the number of people in households that bring in more than $100,000 also rose from 12 percent to 24 percent.
** There was no increase in the percentage of people in households making less than $30,000.
** So the entire "decline" of the middle class came from people moving up the income ladder; for married couples, median incomes have grown in inflation-adjusted dollars by 25 percent since 1979.
Further, companies are not walking away from their commitments to workers by cutting pension and health insurance benefits, says Rose:
** Employer contributions for health insurance jumped from 3.5 percent of wages in 1979 to 7.2 percent in 2005, according to the Commerce Department.
** Virtually every large company provides coverage and pays more than 75 percent of employees' premiums.
** The rise in the number of uninsured workers over the past decade comes from cutbacks by small businesses and the self-employed.
Source: Stephen Rose, "5 Myths About the Poor Middle Class," Washington Post, December 23, 2007.
For text:
http://www.washingtonpost.com/wp-dyn/content/article/2007/12/21/AR2007122101556.html
For more on Economic Issues:
http://www.ncpa.org/sub/dpd/index.php?Article_Category=17
I bet some of us are willing to disagree.
Don’t forget that there is also many more cheap but decent quality (not to mention higher-tech) goods than there were in years past. Yesterday’s dollar, adjusted for inflation, buys much better stuff today than it did yesterday.
I’m offended by this piece. I’m a member of the poor middle class and it stinks. I can’t afford the AR-15 I want and will have to buy a lower quality Olympic Arms or Model 1 Sales or something.
I haven’t read the piece yet.
So, if I paid $1200 for an HDTV two years ago and $900 for the same one today, it should be looked at as a rise in standard of living?
yitbos
Uh, yes, of course. What else is the purpose of money, but to buy things or services? This has to be taken into account if “standard of living” is to have any significant meaning.
Atleast you don’t have to buy a Hi-Point Carbine.
yitbos
Yes especially if the new model contains a whole lot more features for the lower price.
The middle class is being hammered at every direction. Throw in Bush’s tens of millions of low wage illegal aliens, happy to earn 8 bucks an hour with no benefits, and it’s not only hammered the middle class, but Bush has also made American citizenship all but pointless.
So the entire “decline” of the middle class came from people moving up the income ladder; for married couples, median incomes have grown in inflation-adjusted dollars by 25 percent since 1979.
Those cost of all things technological (like computers and TVs) has certainly gone down. The price of houses and college, however, has gone way up. Cars are a wash. Overall, its tough to compare my life now with my life in 1979—like comparing apples to oranges.
Thank you, Capt. Obvious.
Some of you misinformed souls continue to think this is all about cheap Communist Chinese goods at Walmart. Just because someone can buy a stupid TV with a big screen on credit does not mean our standard of living is increasing. It's not.
Most of the American middle class are fortunate to even buy a home nowadays and be able to afford the monthly mortgage payments...Things like decent affordable family medical coverage have become a sad joke for most of the middle class.
No one is being fooled by articles suggesting the American middle class is doing wonderful. It's a load of cr*p and everyone living in the real world knows it.
Tell you what, that SD memory stick slot was worth a whole lot. Looking at photos on the confuser monitor is one thing, but, boy, try it on a 32" screen!! Take it out of the camera, stick it in your TV.
But all these digital cameras and accessories put a lot of people out of work. They are now flipping burgers.
yitbos
I'll bet the water is better than where they came from. That in itself is a standard of living increase not calculated in the statistics.
yitbos
Everybody can moan about something. I didn’t get the 45 twin engine boat I deserve, but hey, next year’ll be better.
What about the myth of the poor families freezing cold, hovering to survive next to a wood stove, until Joe Kennedy, Hugo Chavez and CITGO come to the rescue. Seen those commercials? A total lie. All 50 states have legislation making this illegal. If a family has no resources to pay their heating bill it must be provided FREE. Period. Some NE states have over a dozen programs to cover this. Joe Kennedy is a disgusting traitor, just like his namesake.
Air conditioning.
TV, especially more than one.
central heating.
Effective medications preventing expensive and dangerous surgery.
safer working conditions, maybe.
automobile ownership.
vacations, including air travel.
How big is the home they can't afford to what was available in the 1950's?
WHEN was there ever decent affordable family medical coverage?
When was more money spent on schools and equipment? (That it is misspent is not the fault of economic policy, is it?)
when were more scholarships for college available or more community colleges?
So the question is, I think, wonderful compared to what?
I don’t disagree with this article. Stats tell the story.
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