U.S. Standard of Living Has Fallen More Than 50%
U.S. Standard of Living Has Fallen More Than 50% (April 3, 2012)
“On several occasions, I have glibly referred to how it now takes two spouses working to equal the wages of a one-income family of 40 years ago. Unfortunately, that is now an understatement. In fact, Western wages have plummeted so low that a two-income family is now (on average) 15% poorer than a one-income family of 40 years ago.”
My thoughts: Laws of supply and demand, along with technological innovation and cheap transport costs. Exponentially larger labor supply (both nationally and globally), more educated workers (40% of adults in the U.S. have at least an associate’s degree) competing for fewer jobs, and improving technology that both enables workers to be more productive, and require fewer workers to accomplish the same job.