From 2000 to 2010 – a period that includes the worst economic recession since World War II – the U.S. economy has grown 45 percent in nominal terms, 17.6 percent in real terms, according to the Bureau of Economic Analysis.
That, in conjunction with this, is why I do not believe that recent
American middle-class experience tells us anything about “the end of
prosperity”:
"The disposable income of families in the middle of the income distribution shrank by 4 percent between 2000 and 2010, according to data compiled by the O.E.C.D. In Australia, by contrast, it increased 40 percent. Middle-income Germans, Dutch, French, Danes, Norwegians and even Mexicans gained more ground."
There’s much more in the article, a veritable litany of the
ways America is turning, or has turned, into a Third World country. But for me, the above comparison with the rest of the world has tremendous clarifying power.
We live in a global economy. If resource constraints, rather than bad policy, are causing the woes of America’s middle class, why are those constraints not affecting the Australians,
the Germans or the Mexicans?
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