At least from a material perspective, things have never been better for many if not most Americans: Their homes are larger and have more amenities. More of them than ever before have access to basic medical care. They earn more and are better educated. Their phones are miracles that would have been unimaginable just a generation ago.
And yet there is a nagging discontent — because so many Americans see the necessities of life as unaffordable. Michael W. Green, an investor, hit a nerve and has started a debate with his argument that the poverty line for a family of four should be $140,000, not the current federally defined level of $32,150.
As most economists will tell you, this argument misunderstands what poverty means and how it is measured. But it resonated for a reason: The ability to fully take part in the economy has never felt so out of reach, not just for people living in poverty but also for the middle class. It’s not that the basics are unaffordable; it’s that the definition of the basics has changed, and their cost is increasing faster than Americans’ (dual) incomes are.
Continue reading the entire piece here at Bloomberg Opinion (paywall)
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Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
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