Reply to post: Re: Some gaps

Which country has 2nd largest social welfare system in the world?

Tim Worstal

Re: Some gaps

A number of problems with the "median income has flatlined" for 30 years story.

It's usually presented as median household wages have flatlined. But the size of the household has declined, meaning wages per capita have increased.

Second, it's measuring wages, not compensation. It leaves out pensions contributions and, importantly, health care insurance. That second has very definitely increased over that time.

Thirdly, and this is argued about, there's something a bit hinky about the way that inflation is measured in that calculation.

Adjusting real per capita incomes, the median, is guesstimated at having rised 25% or so. Not a great performance by any means but better than flatlining.

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