Rossputin.com: Rational Thinking About Our World

A reader of these pages wrote a comment which was chock full of the worst sort of populist nonsensical economic proposals. It's the kind of stuff that we get, usually in pieces...not all in one place...from Democrats, isolationists, and populist panderers like Lou Dobbs.

I wrote a comment in response, but I also thought this excellent letter to the NY Times by Don Boudreaux was to the point.

The more I read of writing by "the public", the more I realize that Brian Caplan is right: The average person's views of the economy and sound political economic theory are not only incorrect, but they are dangerous. Everyone should have to read Don Boudreaux and Brian Wesbury. For today, here's Don:

To the Editor:

Bob Herbert says that "the average income for the vast majority of Americans actually declined" [from 1980 to 2005]. The standard of living for the average family has improved not because incomes have grown, but because women have gone into the workplace in droves" ("Good Jobs Are Where the Money Is," January 19).

The data suggest otherwise. First, in every Census Bureau breakdown of families according number of spouses working, real median, as well as real mean, income is higher today than in 1980* - a fact nearly impossible to square with Mr. Herbert's claim that average incomes have fallen for the "vast majority of Americans." More to the point, median income for families in which both spouses worked in 1980 was (in 2005 dollars) $60,313. In 2005 median income for families in which both spouses worked was $78,755 - higher that the 1980 figure by 31 percent. Because, in these data, both spouses worked in 1980 and in 2005, this increase in median real income for these families cannot be the result of spouses entering the workforce since 1980.

Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University