Wednesday, February 08, 2006

The myth of declining wages

Next time you read lamentings about how people's real wages have declined, keep this column by Thomas Sowell in mind:

Economists' estimates of how much the consumer price index exaggerates inflation range from an estimate of one percentage point by former Federal Reserve chairman Alan Greenspan to an estimate of 1.5 percent by Michael Boskin, former chairman of the Council of Economic Advisers to the President.

Even if we take the lower estimate of one percentage point, over a period of 25 years, that under-estimates the real income of the average American by nearly $9,000. In other words, a working couple will have their real income under-estimated by nearly 18 grand, using the consumer price index to correct for inflation.

No wonder the income statistics look so bad, even while the standard of living is rising and Americans have a higher net worth than before. Nothing is easier than to turn reality upside down, especially if you are just trying to score points, instead of getting at the truth.


At 9:51 PM, Blogger angryroughneck said...

Sowell is one of the greatest living thinkers.

At 9:43 PM, Anonymous Anonymous said...

Cool blog, interesting information... Keep it UP Class mcse Generic xanax buy tramadol Sauna in deutschland kaufen Lingerie in paris 2001 i30 infiniti review wheel chair scooters medicare seattle wa Surgical technic rhinoplasty Colour wheel with tintstones and flowers Cabinet hinge pewter picture lamborghini diablos Car security car alarm code alarm El dorado golf and beach club los cabos Cheap calling from thailand to us 809 Zyrtec and beer Affordable dental insurance miami

At 8:04 PM, Anonymous Anonymous said...

Cool blog, interesting information... Keep it UP mature ladies in pantyhose thumb galleries free best free fioricet information Internet advertising denver 3 mercedes benz parts kitchen stand mixer Gambling in rural areas loose slot machines gaming Centertown web site marketing Online marketing research company Twin dvd players Aid bar blender kitchen Zyban and marijuana the effects advertising florida online Toyota cost objective Free video conferencing web

At 6:25 PM, Anonymous Anonymous said...

Keep up the good work paintballing in omaha Pony baseball tournament buspar http mail hastings es Vector 12v battery charger


Post a Comment

Links to this post:

Create a Link

<< Home

Blogarama - The Blog Directory