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We hear that the wages have been stagnant in the last several decades, but Arty the same time, the buying power of the average US consumer as indeed substantially in the same time period.
We hear that the wages have been stagnant in the last several decades, but Arty the same time, the buying power of the average US consumer as indeed substantially in the same time period.
Why are economists ignoring this?
Economists wouldn't ignore it, but an heavily centralized government would.
An heavily centralized government would in particular avoid any discussion of it, even more so if it was a national government operating falsely in the frame-work of a federal system, since that would do nothing but highlight the failures of a national government.
That problem exists right now. $1,200 only equals $1,200 in certain specific areas of the United States. In other areas of the United States, $1,200 is actually equal to $650, and in other areas, $1,200 is equal to $2,300. Which is part of the problem that exists for Social Security right now.
So for example, if the pseudo-federal government started publishing data about Purchasing Power Parity, then it would be known that a family of four in certain areas of the US gets to spend the equivalent of $600 per month on food with just $400/month in Food Stamps, while a family of four in another area of the US, where $400/month in food really equals $250/month in food is not having their "nutritional needs" met.
Liberals think that's funny.
What's the logical, common sense, constitutional, obvious solution to that problem? The government formerly known as the federal-government needs to quit the Food Stamp program, stop collecting the taxes for it, turn the program over to the several States, who can then set up their own Food Stamp programs to meet the needs of their residents, and be able to collect the tax money to fund it.
The problem is that you'd be asking the national government that pretends to be a federal government to give up power.....and governments don't like to surrender power (or share it).
If economists were actually smart enough to understand arithmetic or macro/microeconomics they'd be far wealthier software engineers or hedge fund traders, not "economists"...who the hell wants to be an economist when they grow up???
Need to think dynamically....
One's income rises vs skills in any competitive economy....think income/net worth of a 19yo software engineer at GOOG vs a 25yo star engineer upon cash-out at some start-up...or a 19yo bond trader at GS vs a 25yo star at some hedge fund after a great yr....no smart employer or customer pays any more than perceived necessary vs prevailing mkt for any product/service...it's a two-way dynamic....not many truly productive employers or employees in either SV or NYC or TX, thus the stars are paid rather well in any lucrative industry
And same kid can buy land in Woodside for 30-40% less than 5yrs ago and pay some elite builder 30-40% less than 5yrs ago to build his bespoke house....either for cash or for some ~3% mortgage....and Merc leases are cheaper than ever in real dollars, as are costs of any ever-better tech products....lots of disinflation in world
No surprise why standard of living is best judged when considering income opportunities (esp pace of upward mobility for high achievers) for ambitious, smart, workaholic kids in any region.....vs costs of housing, cars, food, etc....on these dynamic metrics, places like SiliconValley dwarf anywhere in world....and for those less capable/productive and willing to do middle-mgr life forever, places like suburban DFW offer greatest std of living on planet
Too much welfare/class warfare mentality embedded in any silly "median" income/alleged inequality stats when not adjusted for one's own career/lifestyle choices and COL of relevant suburban corridors like SV or DFW
Vast majority of SV's wealthy today are white kids who grew up in middle-income suburbia somewhere in US, became engineers or salesguys, but figured out how to move up in world at a rather young age....
I think we should use Net Worth as a measure of economic success. The true measure of the wealth of an economy is not how successful the brilliant workaholics or wealthy inheritors become because they would achieve in any economy but how well the average person working in a 40 hr week job nailing together widgets is managing to live. We have concentrated on the madmen and left the rest of the economy to stagnate. That was really dumb. We have also wasted far too much wealth protecting the world wide petroleum investors. Most of those monopolists should have been nationalized decades ago instead of pampered and protected with the biggest military on the planet.
Economists these days are nothing more then bought out political hacks.
You tawkin about helicopter Ben?
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