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The thesis of the article is middle class stagnation (the actual truth is, inflation-adjusted hourly wages have fallen since the early 1970s, they have not stag
by CleanedStar 14y ago
The thesis of the article is middle class stagnation (the actual truth is, inflation-adjusted hourly wages have fallen since the early 1970s, they have not stagnated). These "increased benefits" are due to skyrocketing health costs which the employer has been paying, not any new fringe benefits. Because employers in the US have been fighting universal healthcare for decades, unlike every other industrialized country. They fight tooth and nail to stop universal health care with campaign donations, then cry how much they have to pay into the HMOs of their workers.
A worker who purchases the same basket of goods and services that the typical family has in 1970 is not going to "cut it". To make the same wage he did in 1970, he will now have to pay for his own job training, college degree and so forth. Employers now require more education from workers. The typical family is now forced to pay a new expense in their basket - their own training and educational costs - forced meaning if they want to remain a typical family, and not fall further then they already have.
- yummyfajitas 14y agoMedical treatments invented between 1970 and 2013 are not new fringe benefits? The skyrocketing health costs pay for fancy new treatments which didn't exist in 1970. CPI includes no hedonic adjustment to health care - it focuses and ignores benefits. (In contrast, some categories such as food and housing attempt to incorporate hedonic adjustments.) Last Feb I had spine surgery that didn't exist in 1970, guided by a scanner which didn't exist in 1990. This Feb I'm on track to deadlift well over my bodyweight. None of this was free. Suffering back pain in 1970 was. I'm quite happy to pay a bunch of money today for these benefits, happier than I would have been suffering with back pain in 1970. I.e., my real wage went up relative to my hypothetical 1970 self because of health care.