The Quite Literal Death of the White Working Class

robeiae

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And if prices go up (inflation) while wages do not rise at the same rate - the real value of the wages is decreasing.
The mandated minimum wage level is not the same thing as wages in general. The above is true, but it is not automatically evidenced by a slowly rising minimum wage.

I didn't suggest any link to outsourcing, regardless. Again, I'm just noting that it is untrue to say that the minimum wage has remained the same for a long time. It hasn't, no matter how it's analyzed.
 

Cramp

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The mandated minimum wage level is not the same thing as wages in general. The above is true, but it is not automatically evidenced by a slowly rising minimum wage.

Okay, I was unclear, talking about the value of the minimum wage.

robeiae said:
I didn't suggest any link to outsourcing, regardless. Again, I'm just noting that it is untrue to say that the minimum wage has remained the same for a long time. It hasn't, no matter how it's analyzed.

No, but the context within which minimum was raised was Don taking a dig at it being responsible for American jobs being sent out of the country. Which ignores that fact that either way you look at it (staying the same, real value falling) minimum wages are unlikely to have been a cause of that!

So that's why I spoke about it that way.
 

Opty

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I'm not necessarily trying to resurrect a "zombie thread" or anything, but I was watching a discussion on one of those "talking head" shows tonight and (false) results of this study were quickly mentioned in order to bolster a (frankly, weak) talking point.

Anyway, so I searched to see if there was a thread here about it (I wasn't around back when it was discussed here) and found this.

A few things about it are interesting to me:

1) That it was yet another example of a misleading "scientific" claim that the media ran wild with without ever checking to see if the actual results (or their sloppy interpretation of it) in the actual study was actually even correct (that's a lot of actual actuallys).

We know now that the specific claim (i.e., mortality rate among middle-aged white men is on the rise) was, indeed, quite incorrect.

2) After the OP, several people credulously (and understandably) accepted the claims in the article and posted their own hypotheses for explanations for the supposed results.

That's fine. That's what people do. We want to come up with explanations for things. But, I think this is a somewhat cautionary tale in the importance of verifying "facts" before accepting them.

Then, as quoted above, Rob posted evidence which showed that the way the results were reported by the media were, indeed, incorrect and misleading. However, nobody paid any attention to that and people continued to post about why they agreed with the claimed results in the OP.

In fact, there was another recent article (also by Gelman) discussing how wrong those reports were:

https://www.washingtonpost.com/news...hen-the-legend-becomes-fact-print-the-legend/

It turned out, though, that (a) the trends in death rates among men was much different than women, and, in fact, (b) after adjusting for age composition (the “middle-aged” category in the United States has had an increase in average age during the past two decades as the baby-boom generation has moved through), the death rate among middle-aged white men has actually decreased during the past few years.The comparison with other ethnic groups and other countries still seems strong — Case and Deaton’s main findings hold up — but it’s just wrong to report that middle-aged white men are dying off. No matter how you slice it, it’s white women who are having the problem

Gelman continues:

They’re talking about an increase in mortality among middle-aged white men, even though it’s the women, not the men, who’ve seen an increase in death rate. But the erroneous statement fits so well with the pundits’ narrative of white male distress, it’s no surprise that it keeps popping up. When an apparent fact is so consistent with everything else you think you know, it’s hard to shake loose from it.

Indeed.

Hell, like a lot of you, I was a bit concerned when I first heard about the study. But, at the time, like many if not most of us, I didn't take the time to investigate it further (I had way too much going on at the time). Thank God for the skeptics and other interested parties out there who do help us all out by digging deeper into such things.

We're a pretty smart bunch here (mostly :tongue) with some pretty sharp critical thinkers but this a good reminder that we're all very susceptible to confirmation bias.
 
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Maxinquaye

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Maybe it's time that people who are really concerned with low-income workers stopped pretending that a "little" inflation is A Good Thing[SUP]TM[/SUP]. As this illustrates, inflation hits those at the bottom of the pile the hardest. If you're barely scraping by, even a couple percentage points of increases in food or gas can have a big impact.

Inflation is the heart-beat of an economy.

If you have too much of it, your ticker is going to explode after a while. If you have none of it, it means you're dead. Economically speaking. It is economic activity, scarcity of goods, and competition for those goods that push prices up. Ie inflation.

No inflation, or deflation, should make klaxons go off, along with swirling lights, emergency broadcasts, and ambulance choppers circling overhead. Which is what is happening in much of the west at the moment. But now we have people who seriously say that deflation is good for people. It's an economically illiterate statement.
 

Don

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Inflation is the heart-beat of an economy.

If you have too much of it, your ticker is going to explode after a while. If you have none of it, it means you're dead. Economically speaking. It is economic activity, scarcity of goods, and competition for those goods that push prices up. Ie inflation.

No inflation, or deflation, should make klaxons go off, along with swirling lights, emergency broadcasts, and ambulance choppers circling overhead. Which is what is happening in much of the west at the moment. But now we have people who seriously say that deflation is good for people. It's an economically illiterate statement.
Baloney. True price deflation is how the standard of living improves. Look at the improvements in the standard of living re: electronics and information tech in general over the last few decades. Prices in that whole segment of the economy have literally crashed over that time period, and everybody, even those on public assistance who now have phones courtesy of government programs, has benefited. The Bezos and Gates of the world have hardly suffered as the industries they control experience an ever-decreasing unitary return on their investments.

This has happened only because government has almost no control over the pricing structure of those devices.

Contrast that with education, where the services are highly regulated and subsidized by government. Those services have increased greatly in terms of true prices over that same time period, with less satisfactory results every year.

All else is financial legerdemain that transfers true wealth into the hands of an ever-smaller group of well-connected individuals. As a nifty side benefit, saving for the future is now a fool's game, since the modest returns the average joe can get down at the local bank make no pretense of keeping up with inflation.

The net result of inflation is that a currency is hollowed out, as has happened in country over country throughout history, the end result of which we can see playing out in Venezuela even as we discuss the issue.
 
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Maxinquaye

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Baloney. True price deflation is how the standard of living improves.

No it's not. Inflation happens when two people go into a shoe shop to buy one shoe. Whoever pays more gets the shoe. The difference between the advertised price and the paid price is inflation.

Deflation is two people going to the shoe shop and seeing the store owner lower prices. Both buyers will then wait for further price drops. It's the rational thing to do, after all. It means that the transaction, the velocity of money, stops. That's bad. The shoe seller won't get his shoe sold. The buyers will keep waiting for the price to drop.

Look at the improvements in the standard of living re: electronics and information tech in general over the last few decades.

That is not inflation.

That is efficiency gains leading to less time, fewer materials, and more units being available. If you can make a phone ten per cent cheaper which is ten per cent more useful, that's increasing productivity. It doesn't actually mean lower prices.

It means that the prices for the materials can be the same or higher, yet less of it is used meaning that a unit exchanges for less currency. The margins can be the same. Or even bigger. The seller will get the same or more money than before for the same amount of used materials. Any perceived 'lower' price for the end consumer is a mirage. It certainly has nothing to do with inflation.
 
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