Day By Day

Tuesday, January 13, 2009

Tom Sowell on the Myth of Middle Class Stagnation

Tom Sowell discusses one of the ways in which economic analysts misrepresent the actual state of the economy -- substituting "household" for "per-capita" income. It is true that household income has stagnated for three decades, but during that same time per-capita income has skyrocketed. Why the discrepancy? Households have changed.

Remember, next time you hear some pundit talk about "household" income statistics, you can assume that he/she is either ignorant or is deliberately trying to make things look worse than they are.