Dani Rodrik on industrial policy; American real generational income levels; very briefly noted; it is not a new bipartisan majority, but rather a collapse of Republican obstructionist Senate party...
The graph gives the impression that the more recent cohorts are faring better than ever with rising real incomes. Yet this flies in teh face of reality where the cost of living, especially shelter has taken an increasing bite out of those incomes. The rentiers have extracted that increased income. Housing has become l;ess affordable, and parents are increasingly allowing their adult offspring to live at home.
I would think that a far better measure of the situation is disposable income after food and shelter is deducted to determine whether the standard of living is improving or worsening. For today's cohorts, the increasing costs of higher education needs to be accounted for as "qualification creep" means that getting almost any decent paying job requires a degree, and therefore necessitates paying for it. This seems unsustainable to me.
Faroohar is cheering for a trade policy that ought to be, one directed only at China and maybe a few more hostile powers, industrial policy that foes not privilege's domestic sales over exports.
And she misses the gorilla walking abounding the background: the investment-dampening dollar-overvaluing US budget deficit.
American Generational Real Income Levels:
The graph gives the impression that the more recent cohorts are faring better than ever with rising real incomes. Yet this flies in teh face of reality where the cost of living, especially shelter has taken an increasing bite out of those incomes. The rentiers have extracted that increased income. Housing has become l;ess affordable, and parents are increasingly allowing their adult offspring to live at home.
I would think that a far better measure of the situation is disposable income after food and shelter is deducted to determine whether the standard of living is improving or worsening. For today's cohorts, the increasing costs of higher education needs to be accounted for as "qualification creep" means that getting almost any decent paying job requires a degree, and therefore necessitates paying for it. This seems unsustainable to me.
Faroohar is cheering for a trade policy that ought to be, one directed only at China and maybe a few more hostile powers, industrial policy that foes not privilege's domestic sales over exports.
And she misses the gorilla walking abounding the background: the investment-dampening dollar-overvaluing US budget deficit.