.....for the past 30 years, real average hourly earnings have declined by an annual average of 0.1%. But this can't possibly reflect reality. In the past 30 years, cell phones and computers have become ubiquitous. Home and auto ownership have climbed. More people dine out; travel; attend sporting events, movies and rock concerts; and join health clubs. Over those same 30 years, real per capita consumption has increased at an average annual rate of 2.3%. Hourly earnings data do not include tips, bonuses, commissions or benefits, and therefore will always lag actual increases in living standards.
Wages and earnings have indeed fallen but increased consumer debt, the monetization of real estate, budget and trade deficits as well as many more married women in the job force earning those declining wages give us the illusion of prosperity. The tax cut, as argued by the writer, may have helped to some extent to foster this illusion, but the other factors, many of which are toxic to long-term economic health, have also contributed.
But not to worry, Bill, you and I won't have to pay the piper when the debts come due. That burden will fall on our children and their children. |
