I have just one item today. I’m rethinking how and what I blog, and three others didn’t make the cut.
Government statistics paint an excessively grim picture of what is happening to real wages and the growth of real national income. Although most households’ take-home cash has been rising very slowly for decades, their standard of living is increasing more rapidly because those wages can now buy new and better products at little or no extra cost. The government’s measure of real incomes gives too little weight to this increase in what take-home pay can buy.
The common assertion that middle-class households have seen no increase in real incomes for 30 years is simply not true. And contrary to a common fear, most members of the younger generation will have higher real incomes as adults than their parents had at the same age.
(Martin Feldstein, We’re Richer Than We Realize) The general story is true, but I do hope that nobody in government tries to quantify it to give each new President a political tool for claiming, with faux precision, how much better things are due to his/her benevolent rule.
Still, the column is top-notch, and includes fun reminders like this:
[C]onsider consumer electronics. New York University economist William Easterly recently tweeted an image of a 1991 RadioShack newspaper ad and noted that all the functions of the devices on sale—clock radio, calculator, cellphone, tape-recorder, compact-disk player, camcorder, desktop computer—are “now available on a $200 smartphone.” The benefits to consumers from these advances don’t show up in GDP.
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Liberal education is concerned with the souls of men, and therefore has little or no use for machines … [it] consists in learning to listen to still and small voices and therefore in becoming deaf to loudspeakers.” (Leo Strauss)
There is no epistemological Switzerland. (Via Mars Hill Audio Journal Volume 134)