As I have previously noted, the “news” media are doing their best to create the impression that the U.S. economy is going to Hell in a handbasket and that Americans in general are in bad shape.
This theme is echoed in the rhetoric of the leading presidential candidates, each of whom would like to convince the electorate that our only hope for a prosperous future lies in his election to the highest office in the land.
Before casting our votes, however, we would do well to examine a few actual facts. Daniel Griswold, of the Cato Institute, provides some objective data that conflict sharply with what we’re hearing:
Average real compensation per hour paid to American workers, which includes benefits as well as wages, has increased by 22 percent in the past decade.
Median household income in the United States is 6 percent higher in real dollars than it was a decade ago at a comparable point in the previous business cycle.
The median net worth of U.S. households jumped by almost one-third between 1995 and 2004, from $70,800 to $93,100.
Combined with low unemployment, low interest rates and low inflation, these data paint an economic picture considerably at odds with the image being peddled by the media and the politicians.
That doesn’t mean everything is perfect, of course, but our troubles are clearly being exaggerated by people of imperfect honesty.
Comments 6
You can always find some poll or article to back up your point of view.It’s being able to combine that information to draw a truer conclusion.With inflation rising about 2% a year having a 6% increase in household income in the last 10 years it doesn’t look income is keeping up.What has happened to net worth from 2004 to now?Low inflation? I think not.Unemployment is on the rise.And with gas prices on the rise things will get worse.It’s all about recognizing the problems and dealing with them.And to blame the other guy solves nothing!
Posted 28 May 2008 at 1:51 pm ¶“With inflation rising about 2% a year having a 6% increase in household income in the last 10 years it doesn’t look income is keeping up.”
The 6% increase is in real dollars, which means inflation is already factored in.
Posted 28 May 2008 at 2:16 pm ¶‘That doesn’t mean everything is perfect, of course, but our troubles are clearly being exaggerated by people of imperfect honesty.’
Yes, the economy is just swell isn’t it.
Posted 06 Oct 2008 at 2:04 pm ¶I notice that you didn’t respond to the specific points raised about real compensation, median income, and net worth.
It’s dishonest (or perhaps illiterate) to conflate short-term market fluctuations and price corrections with long-term economic trends.
Posted 07 Oct 2008 at 8:42 am ¶‘It’s dishonest (or perhaps illiterate) to conflate short-term market fluctuations and price corrections with long-term economic trends.’
The question is whether the ‘troubles’ were being exaggerated. Clearly they were being underestimated.
Posted 08 Oct 2008 at 3:02 am ¶I see you are still flailing away at your straw man, Mr. Brown.
I guess that means you concede the basic points about real compensation, median income, and net worth (i.e. the true measures of economic prosperity).
Posted 08 Oct 2008 at 7:10 am ¶Post a Comment