American Family's Income Lagging Far Behind Productivity Growth Since 2000 - The Orange Mane

Bronco_Beerslug · 05-25-2007, 08:48 AM

Shouldn't surprise anyone I guess, especially since the Bush administration has pushed outsourcing, encouraged the illegal alien invasion and moving to a Chinese goods service economy.

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Report shows American men in their 30s lag behind their fathers' wages
By Greg Ip
The Wall Street Journal
May 25, 2007 6:00 AM

American men in their 30s today are worse off than their fathers' generation, a reversal from just a decade ago, when sons generally were better off than their fathers, a new study finds.

The study, the first in a series on economic mobility undertaken by several prominent think tanks, also says the typical American family's income has lagged far behind productivity growth since 2000, a departure from most of the post-World War II period.

The findings suggest "the up escalator that has historically ensured that each generation would do better than the last may not be working very well," says the study, which is scheduled for release today.

The study was written principally by John Morton of the Pew Charitable Trusts, which is leading the series, called the Economic Mobility Project, and Isabel Sawhill of the Brookings Institution. Other participating think tanks are the Heritage Foundation, American Enterprise Institute and the Urban Institute.

In 2004, the median income for a man in his 30s, which is a good predictor of his lifetime earnings, was $35,010, the study says, 12 percent less than for men in their 30s in 1974 — their fathers' generation — adjusted for inflation. Just a decade ago, median income for men in their 30s was $32,901, 5 percent higher than 30 years earlier. The median is the midpoint: half of men earn more, half earn less.

Ms. Sawhill said she isn't sure why men's wages have stagnated.

"It seems there's been some slowdown in economic growth, it's possible that the movement of women into the labor force has affected male earnings, and it's possible that men are not working as hard as they used to."

The study suggests that absolute mobility — the rate at which an entire generation's lot improves relative to previous generations — has declined in recent years. But within a particular generation, individuals can still get ahead if relative mobility, the rate at which the rich and poor trade places, remains high. Poor fathers, for example, may have rich sons, and vice versa. To determine whether relative mobility is high would require studying specific parents and their children rather than broad categories. Mr. Morton said the group will tackle that in a later analysis.

The report also found that between 1947 and 1974, productivity, or output per hour, and median family income, adjusted for inflation, both roughly doubled. Between 1974 and 2000, productivity rose 56 percent while income rose 29 percent. Between 2000 and 2005, productivity rose 16 percent while median income fell 2 percent, challenging "the notion that a rising tide will lift all boats," the report says.

Ms. Sawhill said several factors could explain the divergence: a growing share of income going to the highest-paid workers, or to profits; an increased share of labor compensation going toward benefits such as health care; or a decline in the number of wage earners, or hours worked, in the typical family.

Bill Beach of the Heritage Foundation said increased immigration could also have pulled down median wages, since most immigrants at first earn less than native-born workers. But he said their incomes may also move up more rapidly in subsequent years.

W*GS · 05-25-2007, 09:12 AM

BB always takes the blame-Bush "explanation", even when the article he posts has several causes...

BB is a one-trick pony. Snore.

Bronco_Beerslug · 05-25-2007, 09:15 AM

Quote:

Originally Posted by W*GS

BB always takes the blame-Bush "explanation", even when the article he posts has several causes...
BB is a one-trick pony. Snore.

You any good at math?

W*GS · 05-25-2007, 09:17 AM

Coming from a guy who thinks correcting monetary values over time for inflation is just a Bush-ian trick...

Did you read my post of the long Economist article about US trade with China?

Bronco_Beerslug · 05-25-2007, 09:18 AM

Quote:

Originally Posted by W*GS

Coming from a guy who thinks correcting monetary values over time for inflation is just a Bush-ian trick...
Did you read my post of the long Economist article about US trade with China?

I mean can you count to 7?

W*GS · 05-25-2007, 09:19 AM

Can you count to 1? I have my doubts...

Bronco_Beerslug · 05-25-2007, 09:21 AM

Quote:

Originally Posted by W*GS

Can you count to 1? I have my doubts...

What, when someone plays your question game as a reply you don't want to play?

W*GS · 05-25-2007, 09:26 AM

I'm just figuring out why you want to use some factoid as a means to bash Bush - he ain't a fricking dictator. He's not forcing us to buy Chinese crap...

alkemical · 05-25-2007, 09:52 AM

Quote:

Originally Posted by W*GS

I'm just figuring out why you want to use some factoid as a means to bash Bush - he ain't a fricking dictator. He's not forcing us to buy Chinese crap...

hh - yet anyway

Hotrod · 05-25-2007, 10:09 AM

Personally I'm well above average.........Yah for me. I guess those that work hard can still win in America.

05-25-2007, 08:48 AM	#1
Bronco_Beerslug Angling in the Deep Join Date: Oct 2003 Location: Texas Riviera, Southern Mountains Posts: 24,281	American Family's Income Lagging Far Behind Productivity Growth Since 2000 Shouldn't surprise anyone I guess, especially since the Bush administration has pushed outsourcing, encouraged the illegal alien invasion and moving to a Chinese goods service economy. -------------------------------------------------------------- Report shows American men in their 30s lag behind their fathers' wages By Greg Ip The Wall Street Journal May 25, 2007 6:00 AM American men in their 30s today are worse off than their fathers' generation, a reversal from just a decade ago, when sons generally were better off than their fathers, a new study finds. The study, the first in a series on economic mobility undertaken by several prominent think tanks, also says the typical American family's income has lagged far behind productivity growth since 2000, a departure from most of the post-World War II period. The findings suggest "the up escalator that has historically ensured that each generation would do better than the last may not be working very well," says the study, which is scheduled for release today. The study was written principally by John Morton of the Pew Charitable Trusts, which is leading the series, called the Economic Mobility Project, and Isabel Sawhill of the Brookings Institution. Other participating think tanks are the Heritage Foundation, American Enterprise Institute and the Urban Institute. In 2004, the median income for a man in his 30s, which is a good predictor of his lifetime earnings, was $35,010, the study says, 12 percent less than for men in their 30s in 1974 — their fathers' generation — adjusted for inflation. Just a decade ago, median income for men in their 30s was $32,901, 5 percent higher than 30 years earlier. The median is the midpoint: half of men earn more, half earn less. Ms. Sawhill said she isn't sure why men's wages have stagnated. "It seems there's been some slowdown in economic growth, it's possible that the movement of women into the labor force has affected male earnings, and it's possible that men are not working as hard as they used to." The study suggests that absolute mobility — the rate at which an entire generation's lot improves relative to previous generations — has declined in recent years. But within a particular generation, individuals can still get ahead if relative mobility, the rate at which the rich and poor trade places, remains high. Poor fathers, for example, may have rich sons, and vice versa. To determine whether relative mobility is high would require studying specific parents and their children rather than broad categories. Mr. Morton said the group will tackle that in a later analysis. The report also found that between 1947 and 1974, productivity, or output per hour, and median family income, adjusted for inflation, both roughly doubled. Between 1974 and 2000, productivity rose 56 percent while income rose 29 percent. Between 2000 and 2005, productivity rose 16 percent while median income fell 2 percent, challenging "the notion that a rising tide will lift all boats," the report says. Ms. Sawhill said several factors could explain the divergence: a growing share of income going to the highest-paid workers, or to profits; an increased share of labor compensation going toward benefits such as health care; or a decline in the number of wage earners, or hours worked, in the typical family. Bill Beach of the Heritage Foundation said increased immigration could also have pulled down median wages, since most immigrants at first earn less than native-born workers. But he said their incomes may also move up more rapidly in subsequent years.

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05-25-2007, 09:12 AM	#2
W*GS Ring of Famer Join Date: Jan 2004 Location: Earth Posts: 19,513	BB always takes the blame-Bush "explanation", even when the article he posts has several causes... BB is a one-trick pony. Snore.

05-25-2007, 09:17 AM	#4
W*GS Ring of Famer Join Date: Jan 2004 Location: Earth Posts: 19,513	Coming from a guy who thinks correcting monetary values over time for inflation is just a Bush-ian trick... Did you read my post of the long Economist article about US trade with China?

05-25-2007, 09:19 AM	#6
W*GS Ring of Famer Join Date: Jan 2004 Location: Earth Posts: 19,513	Can you count to 1? I have my doubts...

05-25-2007, 09:26 AM	#8
W*GS Ring of Famer Join Date: Jan 2004 Location: Earth Posts: 19,513	I'm just figuring out why you want to use some factoid as a means to bash Bush - he ain't a fricking dictator. He's not forcing us to buy Chinese crap...

05-25-2007, 10:09 AM	#10
Hotrod Self Appointed Expert aka Dortoh Join Date: Aug 2003 Posts: 25,136 Adopt-a-Bronco: Miss I	Personally I'm well above average.........Yah for me. I guess those that work hard can still win in America.