The simple economics of the declining middle class — and the not so simple politics

I’ve posted a number of criticisms of Bryan Caplan’s book, The Myth of the Rational Economist. In one post, responding to Caplan’s claim that lay people suffer from pessimism bias, I took issue with his assessment of household income (generally prefering mean household income over median household income) as a way of dismissing the bleak view that working people have of the economy. Here is a link to a blog that focuses on the data for Canadian households, which is not quite as bad as the American case. Caplan obviously does not take this evidence into account.

The simple economics of the declining middle class — and the not so simple politics.

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