Tuesday, July 18, 2017

Higher income

(cont'd from yesterday's post)

What a difference a century makes. In the average worker's home of 1915 . . "family members may have all shared the same bedroom," "it probably wasn’t yet wired for electricity [think about that!], and the indoor toilet [if there was one] "likely was in a closet or a storage area."

Today's Americans have much more comfortable and convenient homes. Why? Are we much smarter and finer people?

No way. The reason why we have so much more comfort and convenience compared to 1915 standards is that America's economy has grown enormously in the last century. Millions of innovations enable our society to produce much more in the way of goods and services with our labor than we could in 1915. (That is growing GDP, gross domestic product.)

Look at the growth of median family incomes (in 2015 dollars) - just for the years since 1947 . . 


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