View source for Median incomes aren’t keeping up with growth- however closely you look
From Critiques Of Libertarianism
Jump to:
navigation
,
search
<!-- you can have any number of categories here --> [[Category:DePonySum (pseudonym)]] [[Category:Inequality]] [[Category:Libertarian Dismissals Of Inequality]] <!-- 1 URL must be followed by >= 0 Other URL and Old URL and 1 End URL.--> {{URL | url = https://deponysum.com/2018/10/27/median-incomes-arent-keeping-up-with-growth-however-closely-you-look/}} <!-- {{Other URL | url = }} --> <!-- {{Old URL | url = }} --> {{End URL}} {{DES | des = "Over the period 1986–2015, the size of the economy per person grew by about 59%, whereas individual median salary income plus our estimate of non-wage compensation grew by about 31%." | show=}} <!-- insert wiki page text here --> <!-- DPL has problems with categories that have a single quote in them. Use these explicit workarounds. --> <!-- otherwise, we would use {{Links}} and {{Quotes}} --> {{List|title=Median incomes aren’t keeping up with growth- however closely you look|links=true}} {{Quotations|title=Median incomes aren’t keeping up with growth- however closely you look|quotes=true}} {{Text | By now a lot of people are aware that median incomes haven’t moved all that much in a long time. Many people are even starting to accept that this is evidence the economy is buggered, from an ordinary person’s point of view. This distressing reality is pretty well communicated by this chart: However one occasionally sees people trying to argue that this apparent income stagnation isn’t real, and is merely an artefact in how the incomes are measured. The two main lines of argument are: 1. The measurements focus on median income, but households have grown smaller over the years, with fewer wage earners, so of course median household wages haven’t been keeping up with GDP per capita. 2. Non-wage benefits for employees, such as healthcare and pensions, have been booming. This isn’t reflected in median household income, but it really should be. Answering these objections takes about two minutes additional research. Simply A) use median individual income instead of median householdincome and B) work out the level of non-wage employee benefits to median income earners and add them in. The only slight difficulty is finding information on how much the median person earns in non-wage benefits. What we do have is information on the scale of non-wage supplements to employee income, which has remained stable as a proportion of total income for the period 1986 to 2015 at around 11%. We then make an assumption which is extremely generous to critics of the median income stagnation thesis. We assume that the median individual earns the mean level of non-wage compensation. In truth, it’s probably considerably lower than this due to inequality. Plug in these figures, and here we have our evidence for median income stagnation relative to economic growth, scarcely diminished at all while fully accounting for the household size and non-wage income objections: The blue line is GDP per capita. The red line is individual median income plus per capita share of non-wage benefits. I picked 1986 to 2015 because 2015 was the latest figure available for median individual income, and 1986 is about when the size of non-wage employee benefits stabilises. Sometimes a disconcerting graph is exactly what it looks like, and there’s no clever meta-contrarian story about how everything is really going fine. Over the period 1986–2015, the size of the economy per person grew by about 59%, whereas individual median salary income plus our estimate of non-wage compensation grew by about 31%. A final note. The two points we talked about here -non wage benefits and median household versus personal income- follow a pattern that’s distressingly common in the discourse. Someone will make a reasonably intelligent point. Someone else will make a reasonably intelligent reply. And for reasons unknown, rather than just check who is right after both points are accounted for, people will throw their hands up and say ‘experts disagree’. This question in particular is glorified accounting. There are right and wrong answers and dammit, you can check which is which. }}
Template:DES
(
view source
)
Template:End URL
(
view source
)
Template:Extension DPL
(
view source
)
Template:List
(
view source
)
Template:Quotations
(
view source
)
Template:Red
(
view source
)
Template:Text
(
view source
)
Template:URL
(
view source
)
Return to
Median incomes aren’t keeping up with growth- however closely you look
.
Navigation menu
Views
Page
Discussion
View source
History
Personal tools
Log in
Search
Search For Page Title
in Wikipedia
with Google
Translate This Page
Google Translate
Navigation
Main Page (fast)
Main Page (long)
Blog
Original Critiques site
What's new
Current events
Recent changes
Bibliography
List of all indexes
All indexed pages
All unindexed pages
All external links
Random page
Under Construction
To Be Added
Site Information
About This Site
About The Author
How You Can Help
Support us at Patreon!
Site Features
Site Status
Credits
Notes
Help
Toolbox
What links here
Related changes
Special pages
Page information
Guidelines To Create
Indexable Page/Quote
Indexable Book/Quote
Indexable Quote
Unindexed
Templates
Edit Sidebar
Purge cache this page