[semimojo]

From 1950 to 2000, the U.S. economy grew at an average rate of 3.5 percent. That generated a massive gain in real GDP per person from $16,000 to over $50,000. A huge win for the middle class.

But as Cochrane noted, if the whole post-WWII period had grown at 2 percent, income per person would have increased from $16,000 to only $23,000 -- about half of what actually happened at 3.5 percent growth.

What? Per capita GDP and per capita income are two very different things.

[uncitizen]

Good catch!

[Cicero]

Yeah, I missed that one. There are so many lies in this column it’s hard to keep track of them all.

People do get pay raises and promotions over the years, all things being equal.

[Cboldt]

That is screwy math to boot (besides measuring two different things, income vs. domestic product). 2% growth compounded over 35 years results in doubling. 35 years ago was the year 1980.

But even that misses a big variable, that being the value of the dollar. What was the income in Zimbabwe? Quadrillions?