Cafe Hayek

where orders emerge

by Russ Roberts on February 16, 2012

in Inequality, Standard of Living

There is now a widely held view that the last 10 or 20 or even 40 years have been a time of great stagnation for the average American. Yes, the overall economy has grown, but all or most or nearly all of the gains have gone to the top 1% or top 10% or top 20%.

These claims are accompanied by various data that seem to confirm the claim.

These claims conflict with casual evidence available to people over a certain age who remember the 1970′s or 1980s. We are an immensely more prosperous nation than we were back then. Our cars are nicer. Our homes are bigger. Our toys are more...