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Wouldn't this be addressed by the fact that, as you said, we now have a new standard of multi-income households? If everyone in America was in a single-income
by alehul 8y ago
Wouldn't this be addressed by the fact that, as you said, we now have a new standard of multi-income households?
If everyone in America was in a single-income household, and then we all became, for instance, two-income households, wouldn't it make sense for individual incomes to drop by half?
- thrmsforbfast 8y agoOnly if GDP remained constant. Inflation-adjusted GDP increase from ~5 trillion in the 70's to ~18 trillion today. Much larger than 2x, and not every household is dual-income.
- ryanwaggoner 8y agoWouldn’t you want to adjust this for household growth too? Not saying it wouldn’t be larger than 2x, but population has grown and households I believe are growing even faster, so maybe it’s actually closer to 2x?
- gowld 8y agoTwo-income households caused wages to drop due to labor oversupply.
- alehul 8y agoYes, exactly, and that shouldn't be a factor in the argument that wages are decreasing because the rich are capturing all economic gains. Looking at household income can (very roughly) remove that from factoring into the data.