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A short thread: Why the *reality" of wage stagnation, flat income growth, and upward immobility may not be what you think. Like, at all. https://www.aei.org/economics/checking-in-on-the-american-dream-3-charts-that-show-us-living-standards-and-upward-mobility-are-far-from-stagnant/
1/ Wages have not been stagnant for decades. "Over the past three decades, wages for typical workers have grown by 20% using the CPI. And using the PCE — the better measure of inflation — finds a 34% increase in wages."
2/ Real income growth has not been flat for decades. "Median household market income increased by 21% between 1990 and 2016 ... market income plus social insurance benefits increase by 28% ... income after taxes and transfers grew by 44%."
3/ Most Americans in their 40s are doing better than their parents were doing during their 40s. "America is clearly an upwardly mobile society. The common experience is for children to have higher incomes than their parents."
4/ Bottom line: Lots of solid growth in living standards, but not spectacular growth. If we want the latter, then we need to boost economic productivity! #innovation
5 and final/ Have questions? You probably do! Here are plenty of answers from my @AEI colleague @MichaelRStrain whose 2020 book informed and inspired this humble thread. https://www.amazon.com/American-Dream-Not-Dead-Populism/dp/159947557X/ref=sr_1_1?dchild=1&qid=1600698589&refinements=p_27%3AMichael+R.+Strain&s=books&sr=1-1
