I get that. However, what we were talking about is middle class folks with kids being able to buy a house (presumably in the suburbs). Apartment living is a different discussion entirely. It used to be that the middle class could easily afford a modest yet comfortable house in the suburbs. That just isn't the case anymore.
There are far fewer truly modest houses in the suburbs these days. The average new home built in the 1970s was about 1700 square feet. Today the number is about 2400, a 40% increase.
IMO a big part of the reason that the middle class is being rubbed out is because we keep raising the minimum wage, making them closer and closer to the poverty line. When I was in high school back in the 90's I had a job making 7.50 an hour, that same job today doesn't pay much more than that, but to keep the same distance from the minimum wage you'd have to make over 12 bucks an hour....which you won't get. The same is true for most people, raises never keep up with the minimum wage increases unless you actually make the minimum meaning that all we are doing is making more people poor while increasing the cost of everything which puts more money in the pockets of the rich. We could make the minimum wage 50 bucks an hour and all we'd be doing is making a country full of poor people with a lot of worthless paper in their pockets.
Productivity has increased by 75% since the late 70s. Median middle-class income hasn't grow even close to that. Where is all that money going? Hint: the growing income gap. I don't have a strong feeling about min wage, but suggesting that the market is going to compensate you properly is not seeing reality of what we already gone through in the past few decades. Even looking at the higher end paying jobs (engineer for example) where min wages doesn't come into the equation, people are working harder, being more productive, but their wages hasn't kept up with what the labor they are putting in. The extra $ is simply going mostly to the top. Want to know what your wages should be if it has kept up with productivity? Try this: http://inequality.is/expensive
Well you are really making my case. Low level income has increased dramatically yet middle class income hasn't, that is what is shrinking the middle class. With every increase in the minimum wage, the former middle class takes a step closer to the poverty line rather than the other way around. The minimum wage has increased just over 70.5% in the last 23 years does anyone think that middle class wages increased by that much? Of course not, thus the middle class today is closer to the poverty line.
No. The data said the top is taking the lion share of the pie. Plus, after you adjust for inflation, the min wages was HIGHEST in the 1960s (close to $11 in today money).
Your productivity argument is a moot point; machines have resulted in higher productivity, not people. The amount of productivity from people is unchanged.
Tell that the person that work more hours for the same pay. And let me be clear, when I talk about productivity, I'm talking about human labor. (I think many of us has seen our co-worker get laid off not because the job fx is no longer needed, but because the remaining employees can pick up the slack... and management view sometime is, they should be happy they still have a job)
....I don't think you understand what I've been saying. The middle is getting squeezed out because raising minimum wages makes the middle class poor and the upper class even more wealthy. The poor are always poor.
Yes, I don't understand you. It seems very illogical to me. Seems you are stating that raising min wage is the reason for a dwindling middle class. Almost as if that's the main and sole reason or you have some agenda against a min wage. I don't think it's so simple... there are many other factors to consider including taxes, government programs, wages, cost, etcs. Plus, inflation adjusted, min wage peak in the 60s and has declined, not increase.
