Wednesday, June 25, 2008

Middle-Class "Decline" Caused By Upward Mobility

Growing income inequality has had little traction thus far as a political issue. Why is this?

Partly because some have moved up, as economist Stephen Rose points out. There are 12% more households earning in excess of $100,000 than 20 or so years ago. And those making less than $30,000 have not increased. So virtually the entire "decline" of the middle-class group has come from people moving up the income ladder, not down.

From "
The American Dream Goes On," by Mortimer Zuckerman

7 Comments:

At 6/25/2008 9:21 AM, Anonymous Anonymous said...

Factoring in inflation, this is another falsehood propagated by wealthy people. On a CPI adjusted basis, incomes are flat. On a pre-Clinton CPI number, incomes are down.

 
At 6/25/2008 9:29 AM, Blogger juandos said...

"Factoring in" a lack of credible info on your part anon, is there any reason not to laugh at what you posted?

Well for all of Mort Zukerman's words of fact & optimism, never fear for the IHT (now a New York Times spawn) is here to throw cold water on it: Life on the fringes of U.S. suburbia becomes untenable with rising gas costs...

 
At 6/25/2008 11:02 AM, Anonymous Anonymous said...

In 2007 the US had 116,011 households as compared to 89,479 in 1987-- the 20 years ago you referred to.

that is a 29.6% increase. So compared to this what does a 12% increase in those making over $100,000 mean.

At first glance it implies that the share of households making over 100,000 has declined significantly.

Is this the point you are trying to make ?

 
At 6/25/2008 11:30 AM, Blogger juandos said...

"In 2007 the US had 116,011 households as compared to 89,479 in 1987-- the 20 years ago you referred to"...

According to whom?

"that is a 29.6% increase. So compared to this what does a 12% increase in those making over $100,000 mean"...

Hmmm, did that alledged increase number of households take the wetback factor?

 
At 6/25/2008 12:15 PM, Blogger juandos said...

BTW sophist, you are a sharp person (no I'm not being sarcastic) and I'm wondering if the following from Standard & Poors might interest you: U.S. House Prices: Even Pretty
Bubbles Pop
(14 pages)

 
At 6/25/2008 2:28 PM, Anonymous rvturnage said...

"Factoring in inflation, this is another falsehood propagated by wealthy people. On a CPI adjusted basis, incomes are flat. On a pre-Clinton CPI number, incomes are down."

Numbers of people in the households have dropped as well. Looking at median incomes for individuals, CPI-U-RS adjusted, the median income has risen.

Besides, comparing income groups over years is highly misleading, since you're not comparing the same individuals. Individual incomes change year to year, and independent studies (from the University of Michigan and from the IRS) both show that most people in the lowest income brackets one year are usually in the top half of income earners within a decade. The individuals in the top income bracket actually fall to a lower bracket within a decade.

 
At 8/26/2008 11:14 PM, Blogger bvitali said...

Does everyone just take every chance possible to take a shot at the US? How about considering that healthcare cost 4 times more today for businesses to supply than it did 20 years ago (yes and that is adjusted for inflation)How about company cars and gas cards to buy tax inflated gas prices? Or maybe gym memberships and corporate provided Day Care? Shouldn't that be calculated into total compensation. I think u will see that real wages and income are up significantly when you don't blindly ignore what businesses are doing for employees. Last time i looked, people in poverty didn't watch a flat panel plasma while talking on a nextel two way to a friend in gas guzzling escalade with 22 inch rims. Have some perspective and stop trying to distort the facts. This is the best damn Country in the world and if you don't like it... LEAVE

 

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