Forget the Cost of Living. What’s the Cost of Thriving in America?

The above is a free WSJ article link.

Two conservative thinkers clash over whether the middle class is more prosperous than a generation ago

Hm a lot of that [clashing] occurs here. [grin]

In one corner, arguing for the receding American dream, is Oren Cass, executive director of American Compass, a right-of-center policy group. In 2020 he unveiled a measure that he called the Cost-of-Thriving Index. His thesis is that while it is true that wages, adjusted for inflation, are higher than in the past, the hallmarks of the middle-class American dream have soared to ridiculous heights: housing, a college education, transportation and healthcare. The index went viral on Twitter and in the media as an encapsulation of why, even before the pandemic, something felt off about the supposedly booming economy.

In the other corner is Scott Winship of the American Enterprise Institute, a center-right think tank. Winship this week released a paper coauthored with Jeremy Horpedahl of University of Central Arkansas “correcting and rejecting” the Cost-of-Thriving Index. Winship argues that using better measures of inflation, and accounting for lower federal taxes, shows it is in fact easier to thrive than in the past.

Most economists will tend to side with Winship, agreeing that the actual spending necessary to sustain that middle-class standard of living isn’t as high as it seems.

But I’ll conclude on a personal note. As a numbers guy, I’m inclined to see the debate Winship’s way. But I’m also the dad of a 3-year-old, with another child on the way, and Cass’s index resonates with me.

It would seem to me that one’s personal circumstances likely colors which side a person favors.

*Sometimes I lie awake late at night calculating the sticker price of college for two. I know that my conforming mortgage rate is a good deal and that the principal I pay down on that mortgage is a form of saving. But I also think about making that payment for another 26 years. I think about all the food I’ll have to buy for two little kids. They eat so much fruit. When you’re doing the numbers at 3 a.m., you don’t always feel like you’re thriving.
Fear of the unknown future perhaps? A fellow that has made calculated choices based on his level of information; hoping all will turn out fine.

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Without any of the numbers because none of them matter look at this.

The average age is higher now.

What does that mean? We need money as a family for healthcare and then education possibly of the children.

The average age being higher we need money for retirement. Supply side econ stripped out a lot of our factory production. We saved on the tax bill? Really? The national debt to GDP ratio skyrocketed. Some savings. Some promises of a better economy.

Most people over age 50, literally 90%, do not have enough for retirement with 50% roughly having no savings.

If you want to know how the middle class is doing? Look no further.

Then there are the Millennials and Zs. They are not game for stupid economic theories that have failed for 40 years.

The boomers took one for the team. Since 2008 that has been the dumbest thing our generation has done needlessly.

The shell game of capitalism goes on full throttle. Stop forcing stupid errors.

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When the cost of electricity falls by half does your electric bill fall by half? Not likely! Now you can afford more air conditioning! You can afford a bigger home, a bigger car, two cars instead of just one.

On the other hand, living below your means could increase your level of happiness as you worry less about meeting your payments.

These are all apples to aardvarks comparisons.

The Captain
has been rich and has been poor. Rich is better.

Or is it?

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From the article:

In one corner, arguing for the receding American dream, is Oren Cass, executive director of American Compass, a right-of-center policy group.

In the other corner is Scott Winship of the American Enterprise Institute, a center-right think tank.

Is there a difference between right-of-center and center-right for which the reader should be aware?

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From a style point of view, center-right is more compact. Edit your text and get rid of all redundant words.

Above text improved, 4 fewer words::

From a style point of view, center-right is more compact. Edit your text to eliminate redundancies.

The Captain

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