Do You Make Less Than Your Dad?
A new study is showing that in real inflation adjusted terms 30 year olds today make less than their fathers in the mid 1970's. In 2004 the median wage for a male in his 30's was $35,010 which is about 12% less than men at the same age in 1974. This finding is a departure from what was going on in the 1990's when adjusted wages were 5% greater than in 1974, clocking in at at $32, 901.
Unfortunately, the study couldn't pin point why the wages are now lower. Personally, I don't think it's a bad thing that they couldn't. Economists can't take all the variables into effect and shouldn't try to. With the magic of statistics the researchers could have probably molded the results to achieve whatever result they wanted too.
More interesting than the article itself for me were the comments after the article which encompass a wide array of stereotypical views on both sides of the political spectrum. The comments can be loosely categorized as 1) I wouldn't want to be a young person today they have it rough, 2) people need to try harder, kids these days are afraid of hard work, 3) the government needs to be like ________(fill in socialist European country) and start leveling the playing field.
I'm very supportive of a free market system and think government meddling has probably caused some of the problems like astronomical health care costs that are happening right now. However, I wouldn't mind seeing the government subsidize student loans a little more in the form of lower interest rates (not by doling out grants). While many corporations are started by risk-taking college dropouts, the people they hire may be equally qualified but stomach risk worse. The economy is better off with more educated people in it whether it is at a tech college, university, or professional school. I think it's probably better to invest in people than it is to change the tax system to concentrate and perpetuate wealth.
Link
30 Year Old Man Never to Be as Rich as Dad @ ABC NEWS
Photo From Paul Goyette @ Flickr
