As we have seen, our economic well-being depends on many factors: income, wealth, pre-or post-tax earnings, family
Question:
As we have seen, our economic well-being depends on many factors: income, wealth, pre-or post-tax earnings, family size and whether or not earnings postponed to the future. Consequently, it isn’t surprising that politicians can find data to support nearly any position about whether Americans are getting poorer or richer. In this week’s assignment, you will investigate the use of data by two economists who reach entirely opposite conclusions.
Steven Pearlstein, conservative business columnist for the Washington Post, argues that the middle class continues to do well. http://www.washingtonpost.com/wp-dyn/content/article/2007/05/29/AR2007052902001.html
On the other hand, Jared Berstein, writing in the liberal The American Prospect magazine maintains that living standards have slipped for the middle class. http://www.epinet.org/content.cfm/webfeatures_econindicators_income20040826 Or: http://prospect.org/article/squeeze-0
Respond to the following key questions:
1. What are the strongest arguments presented by each side?
2. What are the weakest arguments presented by each side?
3. What additional data would you like to have in order to determine who is correct?
Expert Answer:
a According to Steven Pearlstein the middle class is declining not because people are getting poorer ... View the full answer
