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The Myth of a Stagnant Middle Class

online.wsj.com

31–40 of 75 posts

Re: The Myth of a Stagnant Middle Class

#31
post #27

This article is pretty much geared for people who can't do math (ironically, considering the ostensible target demographic of the WSJ). 1) Pointing out that things have gotten cheaper is specious. Things have gotten cheaper for rich people too. One would expect technological progress to make things cheaper over time--what does that have to do with income distribution within the country? 2) Average worker productivity…

He's not writing about 'income distribution' or 'share of national income', he's writing about wages and consumption.

(Adopting the same dismissive tone as your first sentence, can we thus conclude your refutation is pretty much geared for people "who can't do reading"?)

Re: The Myth of a Stagnant Middle Class

#32
post #20

Another factor that isn't often acknowledged when making comparisons of 'household income' over time: households are shrinking. To contrive a stark example, say 30 years prior the median household size was 4 people, and the household income was $100K (in real dollars). Fast-forward to a later period, median household size 3 people (due to later marrying, fewer children, more people living alone), and median household…

Conversely, mean number of earners per household has also gone up, but household income does not reflect this.

Re: The Myth of a Stagnant Middle Class

#34
What about political influence? Irrespective of how much you can buy, if dollars equal political influence, which is not far from wrong, people in the middle class now have less control over their lives and those of their children.

Re: The Myth of a Stagnant Middle Class

#35

In the early 1970s, WSJ writers could have written an article pointing at how much better the middle class in the US had done over the past 40 years. Now they have to resort to this sophistry. When they admit the average hourly wage of nonsupervisory workers has remained about the same, what that actually means it is lower than it was in the early 1970s, adjusted for inflation. So one point they make is workers are p…

In the early 1970s, WSJ writers could have written an article pointing at how much better the middle class in the US had done over the past 40 years.

You really think you'd rather be the median income 25 year old in 1973 vs. 2013? It's not sophistry to point out that today's median 25 year old has massive advantages in health, education, technology and basic quality of life over his 1973 equivalent. The real average wage captures none of this improvement, which is the point of the piece.

Re: The Myth of a Stagnant Middle Class

#36
The one thing seems to have been omitted is housing costs? I am in the UK and housing costs have risen very sharply thus eliminating any other reductions on pricing. This is one area the current generation is much worse off, rents are high, and purchase prices even higher. My parents with a single relatively low income could afford a house, my sibling and his partner with two reasonable incomes can't afford a one bedroom apartment.

Some parts of the UK do have cheaper housing but with good reason, low levels of employment.

Interested to hear the US and wider perspectives.

Re: The Myth of a Stagnant Middle Class

#37
post #12
post #3

All I see is a bunch of handwaving and distractions from what is admitted to be a real issue at the start. Imagine we still had slavery in the US in 2013. Who would argue that slavery is perfectly ok because, by golly, slaves live longer and have access to nicer clothes and improved healthcare? And look, we had to deal with an influx of new slaves, so it's actually their fault! Really, those are your arguments? After…

You're missing the point. The gross numbers haven't increased, but the things that actually matter (what you can buy for your money) have decreased. The key point being: "spending by households on many of modern life's "basics"—food at home, automobiles, clothing and footwear, household furnishings and equipment, and housing and utilities—fell from 53% of disposable income in 1950 to 44% in 1970 to 32% today." There'…

But they spend more on healthcare and education (upward social mobility should ideally be affordable to all).

Re: The Myth of a Stagnant Middle Class

#38
post #3

All I see is a bunch of handwaving and distractions from what is admitted to be a real issue at the start. Imagine we still had slavery in the US in 2013. Who would argue that slavery is perfectly ok because, by golly, slaves live longer and have access to nicer clothes and improved healthcare? And look, we had to deal with an influx of new slaves, so it's actually their fault! Really, those are your arguments? After…

This is a poor analogy because slavery wasn't a measure of well-being.

Slavery was the omission or suppression of freedoms and privileges that were considered rights. Slaves were bought and sold, and didn't have the right to choose to work (or not), or for whom. Slaves were not afforded the right to participate in democratic process.

Middle-class Americans are not restricted the way slaves were. A middle-class American is not restricted by law from deciding not to work, or for pursuing other career opportunities. They are allowed to vote. They are allowed to travel freely, and choose where they will live. To own property.

The thing that truly separated slaves from free people was not an income gap. It was that slaves were legally restricted from living like free people.

The concern will rise if and when middle class people are truly institutionally restricted from participating in society. If they were to institute policies to say only people with net worth over some value, or only landowners were allowed to vote. Or if laws were passed solely based on the lobby of big business to the detriment of the majority opinion. Or if people were legally restricted from changing jobs, or forced by law to work.

Some of these things are actually coming to pass. Particularly the manipulation of government and law by the very wealthy. The greater the income gap becomes, the more legislative power the wealthy have. The more legislative power the wealthy have, the easier it becomes for them to change the laws to maintain that power. When that power becomes enshrined in law, then we can start comparing the middle class to slaves.

We're not there yet, but I think there are people with a lot of wealth who would much rather see us there than lose their wealth.

Re: The Myth of a Stagnant Middle Class

#39

In the early 1970s, WSJ writers could have written an article pointing at how much better the middle class in the US had done over the past 40 years. Now they have to resort to this sophistry. When they admit the average hourly wage of nonsupervisory workers has remained about the same, what that actually means it is lower than it was in the early 1970s, adjusted for inflation. So one point they make is workers are p…

So one point they make is workers are paying more to their HMOs than ever, so the % of fringe benefits to wages has increased. This is proof against a stagnant middle class?

No, the point is that compensation/worker is up, but wages/worker is down, implying that non-wage compensation/worker is up.

Then that a one income household can not cut it any more is mentioned.

Define "cut it". If "cut it" means "purchase the same basket of goods and services that the typical family had in 1970", they almost certainly can.

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