"We in the media have a problem.
Actually, it’s a big problem for all Americans.
We have become addicted to the notion that, except for the top 1 percent or the top 10 percent, the incomes of most Americans have stagnated for decades.
The problem is that, at best, this is an exaggeration and, at worst, an untruth.
A few weeks back, I wrote about a new study from the Congressional Budget Office (CBO).
It convinced me that, though typical incomes are rising slowly, they are still rising, and that, over long periods, the increases are significant. To cite one statistic from that column: Average inflation-adjusted household incomes for the middle fifth of Americans (by income) rose from $56,400 in 2000 to $64,700 in 2015.
That’s a 15 percent gain.
What I didn’t know then was that the Urban Institute, a well-known economic and social policy think tank, was finishing a complementary report by economist Stephen J. Rose.
The report, now available, compares various income estimates and reaches a similar conclusion: Most Americans have realized small annual increases that ultimately cumulated into meaningful gains.
...The problem is to replace the simplistic conventional wisdom with this messy reality.
It will be tough, because the status quo is more politically appealing.
The story line is pointed: “The ultra-rich are destroying the middle class.”
...A new study by Piketty, Saez and economist Gabriel Zucman qualifies this result.
When the effect of taxes and many transfers were included, the top 10 percent didn’t capture all the gains.
The median income jumped 33 percent from 1979 to 2014..."
Read on.
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