Declining Economic Mobility in America
A new report released today by the Economic Mobility Project highlights the declining economic mobility of America. The think tanks comprising the project make for some strange bipartisan bedfellows, with the Pew Charitable Trusts, American Enterprise Institute, Brookings Institute, Heritage Foundation and the and Urban Institute all working together.
Some of the report's findings:
*The US has less relative mobility than many other developed countries.
*Absolute mobility in the U.S. is declining.
*Increases in productivity are not translating into higher incomes.
Warren Reports readers, which of these findings is most troubling?
Relative mobility
Relative mobility is the ability of individuals to change their place in society regardless of what is going on at a national level. Denmark, Norway, Finland, Canada, Sweden, Germany, and France all have higher relative mobility than the U.S.
Absolute Mobility
Absolute mobility is the improvement of a generation's standard of living compared to that of the previous generation's. Men in their 30's earn less (12% less) than their father's did a generation ago. Only the increased entry of women into the workforce has prevented the median family income from declining over the last 30 years. The addition of another workforce member to households has increased median family incomes by only 9% over their 1970's levels.
Productivity and Income
Between 1947 and 1974 productivity doubled and so did median family incomes. Between 1974 and 2000 productivity rose 56% while median incomes rose 29%. Between 2000 and 2005 productivity rose 16% while median incomes fell 2%
The three findings mentioned in the EMP report are equally troubling. I may be in a bigger boat personally than my parents; however, if my fellow citizens are in kayaks, it may endanger how my children and grandchildren will fare when it's their turn to navigate. Absolute mobility ought to be the heart and soul of society as it evolves. Absolute mobility and relative mobility, however, coexist in a symbiotic relationship. Said relationship is presently on an uneven keel, as illustrated by the fact that our daily sweat leads us to charge that "cold one" at the end of the day.
May 25, 2007 4:33 PM | Reply | Permalink
They are all manafestations of the same thing - was my right eye more troubled than my left when I read it?
The corporate takeover of our government has unsurprisingly meant that only corporations and the individuals who run them prosper these days. The explosion of CEO compensation is another manifestation - there are many more.
And yes, I find all of the manifestations of fascism very troubling.
May 25, 2007 8:32 PM | Reply | Permalink
Fascinating information. Is the fact that men in their 30's earn less than their fathers at that age adjusted for inflation?
May 26, 2007 7:54 AM | Reply | Permalink
Rising productivity (producing higher corporate profits and executive compensation) coupled with stagnant or falling real wages is a big part of the widening income and wealth gap - the demise of the middle class. This problem could be corrected through progressive compensation policies and progressive taxation.
Perhaps most of all, corporations need to give a damn about America.
May 30, 2007 6:26 PM | Reply | Permalink