“Most studies define the middle class relative to the national median, which makes the dividing line between haves and have-nots rise automatically as the country gets richer. Rose and Winship instead use a benchmark of fixed purchasing power, so that if real incomes (those adjusted for inflation) rise, more people are shown moving into—or beyond—the middle class in a meaningful sense.
Under this approach, the “core” of the middle class does indeed shrink modestly. But crucially, the middle class shrinks because people are moving up the income ladder, not because they’re falling down. Since 1979, the share of Americans in the upper-middle class has roughly tripled—from about 10 percent to 31 percent—while shares of those considered lower middle class or poor fell substantially.”
Taiwan has a higher GDP per capita than South Korea and Japan. Taiwan’s median wealth per adult is about the same as the US. The US has higher average wealth because of a handful of super rich people.
Economist Luigi Zingales was on Fox News for something other than the estate tax, but they asked him about it and he said he was for it. He was never invited on Fox News again.
Frank Luntz was hired by the Republican Party and groups funded by super wealthy people to fight the estate tax. He renamed it the death tax so people wouldn’t think of it as a tax that mostly affected the super wealthy.
The problem with the super wealthy and taxes isn’t tax rates, it’s that much of their income is not taxed at all. It isn’t counted as income. Before the fall of Communism, the American super wealthy actually paid taxes, but without the threat of Communism, there wasn’t the pressure to show that capitalism will work for everyone. Many changes, and a lack of reform to catch up with gaming the system, has resulted in the estate tax being a joke and the super wealthy paying very little tax compared to their lifetime income.
High income people pay taxes, but the super wealthy don’t officially have much income. Of course, they do have income, but it doesn’t count and is often never taxed.
“Yes, homes cost more now, but census data show more Americans own their homes now than when I was a kid.
And today’s homes are much bigger and twice as likely to have central air, dishwashers, garbage disposals, etc.
We want more now.
Also, young people can afford more now.
Today, Americans actually spend a smaller percentage of our money on food, clothing, and housing than we used to, according to Bureau of Labor Statistics survey data.
“We have a lot more things and we don’t have to work as hard to get them,” says Michel. “Now it’s the norm to go out for dinner.”
When I was young, few people did that.
Few people flew places for vacation. They didn’t have the money, and flying cost much more. Adjusted for inflation, a cross-country flight cost $1,000. Now it’s about $300.
“People did not just go on vacation,” says Michel, “did not fly all across the country.”
…
Gen Z, overall, is doing better than young people once did. A typical 25-year-old Gen Zer has annual household income that’s 50 percent above Baby Boomers’.”
“Hungary was once wealthier than Poland—it had a per capita GDP of $21,400 in 1990, when it also emerged from under the thumb of the Soviet Union—but it now lags considerably and seems to be falling farther behind. A share of the blame goes to Hungarian President Viktor Orbán, who embarked on an economic and ideological project during the 2010s that caught the attention of conservatives and nationalists across the globe, particularly in the United States. Along with a crackdown on immigration, Orbán is a ferocious economic interventionist. In 2021, for example, he responded with aggressive price controls on food, fuel, and other essentials to combat inflation.
That shift toward statism brought predictable shortages and, as Balcerowicz warned, stagnation. Hungary’s economy sank into a recession after posting negative growth in the last two quarters of 2024.
Hungary’s brash strongman is skilled at drawing attention to himself. But Poland’s stability and growth ought to show the way forward—not just for central Europe, but for any place that throws off the shackles of authoritarian ideology and the central planning that comes with it.”
“Americans today are vastly better off than they were 50 years ago. After adjusting for inflation, household incomes have risen by about 50 percent—more than double what raw census data suggest. Unemployment remains near historic lows. Over the past three decades, the private service sector has created about 40.5 million net new jobs, many in high-wage, high-skill fields like health care, finance, and professional services.
Meanwhile, U.S. industrial output has surged. It’s now at its all-time high but with fewer workers thanks to stunning productivity gains. As economist David Autor notes, the so-called hollowing out of the middle class involves many workers moving up into higher-skill, higher-paying occupations.
None of this means that the labor-force detachment problem should be ignored. It does mean that the story is more complicated than Trump’s “China stole our jobs” narrative suggests.”
…
“The deeper problem exposed by the China shock wasn’t trade—it was America’s fading economic dynamism. In past generations, when industries declined, workers moved. They retrained. They found new opportunities. Today, many displaced workers simply stay put even as jobs emerge elsewhere.
Government policy plays an enormous role. Over time, policymakers have built a dense thicket of regulations and disincentives that trap people where they are and discourage adaptation.
Restrictive zoning and land-use legislations have sent housing costs in high-wage cities through the roof, pricing out workers who would otherwise migrate toward opportunity. Economists estimate that even modest housing deregulation would allow more Americans to live and work where their skills are most valued.
Another culprit is occupational licensing. Today, nearly one-third of U.S. workers must obtain some kind of government license to do their jobs, up from just 5 percent in the 1950s. These barriers disproportionately affect low-income workers and create huge hurdles to interstate mobility, effectively locking people into stagnant local economies.
Then there’s Social Security Disability Insurance. Reforms in the 1980s expanded eligibility with broader, more subjective criteria. Today, many prime-age men outside the labor force report being disabled even as overall health has improved and physically demanding jobs have declined. The effect is less labor-force reentry—and, thus, worse long-term prospects—for workers on the margin.”
Private equity have purchased nursing homes, sold their assets like their facilities, then leased these facilities from who they sold them to, they pocket the cash from the sale, buy more properties, then use market power to drive down expenses, then use the profits to get the nursing homes to take a loan and pocket that cash, the nursing home is strained by all these burdens, but who cares when private equity already made money. Such activity may have caused 20,000 premature deaths over 12 years as service quality is cut.