Barely Half of 30-Year-Olds Earn More Than Their Parents

Sorry, Young People: You Probably Won’t Make as Much Your Parents Did

As wages stagnate in the middle class, it becomes hard to reverse this trend

From a report in the Wall Street Journal dated December 8, 2016.   Barely half of 30-year-olds earn more than their parents did at a similar age, a research team found, an enormous decline from the early 1970s when the incomes of nearly all offspring outpaced their parents. Even rapid economic growth won’t do much to reverse the trend.

30-year-olds-earning-less-than-their-parents

Wage stagnation has taken heavy toll since 1970s

“My parents thought that one thing about America is that their kids could do better than they were able to do,” said Raj Chetty, a prominent Stanford University economist who emigrated from India at age 9 and is part of the research team. “That was important in my parents’ decision to come here.”

What’s more, even if President-elect Donald Trump fulfills his promises of rapid economic growth, the trend won’t be reversed significantly. Even if income levels grew 3.8%, the percentage of 30-year-olds who out-earn their parents would bump up to just 62%, the Wall Street Journal reports.

The study was conducted by economists and sociologists at Stanford, Harvard and the University of California. They used tax and census data to compare the earnings of 30-year-olds starting in 1970 to that of their parents.

What the report does not do is explain why wages are stagnant. I will give you my take on this horrible reality. I did earn more than my parents but only because of inflation.

When I married in 1969 my salary was $10,000 per year. According to the United States bureau of Labor Statistics your income today, based upon the CPI Inflation Calculator, that salary equates to $65,866.  My father never earned that inflation adjusted salary.

There have been many reasons for the stagnant salaries.  Three come to mind almost immediately. 

First management earned ten to twenty times the average income of most employees in the earlier parts of the 20th century.  Today management earns 200 to 300 times the average income of most employees.

Second many jobs have been outsourced other countries.  That has resulted in more potential employees seeking the remaining jobs.  Thus with more people looking for work employers can push down the pay they have to offer.

Third, many jobs have been automated thanks to artificial intelligence (AI), and computerization.   Have you seen the inside of an auto manufacturing facility?  Automation has eliminated many jobs from welding to painting.  Warehouses are now so automated that less material handlers are needed.  Office workers, I am one of them, now have computers that perform many of the manually performed functions that were done using typewriters and spreadsheets. That too reduced manpower needs. Less manpower translates to an oversupply of workers and that translates to lower pay. It is all about supply and demand.

It is unlikely that any government of any political party will change this trend.  I hope I am wrong.

Buyer Beware

Caveat emptor is a Latin term that means “let the buyer beware.”

I was in a J.C. Penny store just few days ago buying two shirts and pair of pajamas.  The items were all on counters that informed me they were on sale.  When I took the items to the check-out counter I was given another 5% discount.  That of course made the purchase an even better deal.  There were sale signs everywhere.  Almost everything in that store seemed to be on sale.

A strategic mistake made in 2011 at JC Penney, regarding its pricing strategy –replacement of sales through coupons with everyday low prices. The Ron Johnson plan was implemented when he took the helm of the company, modeling the company’s stores after those of Apple.  Sales declined disastrously during his tenure.  People like to buy things that are “on sale.”

Here in metropolitan Los Angeles there are at least 20 Macy’s department stores.  Advertising is almost daily in the newspapers.  There is always a sale.  30% off, 40% off, 50% off along with One Day Sales are part of the usual pitch.  I have never believed any of the advertising.  My wife and daughter do believe the advertising.  They are probably part of the larger group than doubters like me.

Los Angeles City Attorney Mike Feuer apparently agreed with my suspicions.  Feuer’s office has filed lawsuits against four big retailers for deceptive advertising that allegedly misled shoppers into believing that thousands of products were on sale at a hefty discount.

The attorney’s office provided examples of misleading ads by Macy’s, Sears, J.C. Penny and Kohl’s.  One example is the April, 2016, Sears online ad for Kenmore washing machine with a “regular” price of $1,179.99 and a “sale” price of $999.99. However, the purported “regular” price was a false reference price.  The argument is that the washer was never advertised at the regular price.

California law bans retailers from advertising a higher original price unless a product was actually available at that price within three months of the ad running. Feuer said the evidence his office collected focused on thousands of online transactions, but that he had reason to believe the practices also were underway at stores.

Should there be such a California law?  After all shouldn’t the words “buyer beware” apply to the purchase of any item at any price?

The Year 1910 in the United States

1910-ford-model-r

1910 Ford Model R

Here are some statistics for the Year 1910:
 
************ ********* ************
 
The average life expectancy for men was 47 years.
 
Fuel for this car was sold in drug stores only.
 
Only 14 percent of the homes had a bathtub.
 
Only 8 percent of the homes had a telephone.
 
There were only 8,000 cars and only 144 miles of paved roads.
 
The maximum speed limit in most cities was 10 mph.
 
The tallest structure in the world was the Eiffel
 Tower !
 
The average US wage in 1910 was 22 cents per hour.
 
The average US worker made between $200 and $400 per year.
 
A competent accountant could expect to earn $2000 per year, A dentist $2,500 per year, a veterinarian
 
 
between $1,500 and $4,000 per year, and a mechanical engineer about $5,000 per year.
 
More than 95 percent of all births took place at HOME.
 
Ninety percent of all Doctors had NO COLLEGE EDUCATION!
 
Instead, they attended so-called medical schools, many of which were condemned in the press AND the government as ‘substandard.’
 
Sugar cost four cents a pound.
 
Eggs were fourteen cents a dozen.  
 
Coffee was fifteen cents a pound.
 
Most women only washed their hair once a month, and used Borax or egg yolks for shampoo.
 
Canada passed a law that prohibited poor people from entering into their country for any reason.
 
The Five leading causes of death were:
 
1. Pneumonia and influenza
2. Tuberculosis
3. Diarrhea
4. Heart disease
5. Stroke
 
The American flag had 45 stars.
 
The population of Las
 Vegas , Nevada , was only 30!
 
Crossword puzzles, canned beer, and iced tea hadn’t been invented yet.
 
There was no Mother’s Day or Father’s Day.
 
Two out of every 10 adults couldn’t read or write and only 6 percent of all Americans had graduated from high school.
 
Marijuana, heroin, and morphine were all available over the counter at the local corner drugstores.
 
Back then pharmacists said, ‘Heroin clears the complexion, gives buoyancy to the mind, regulates the stomach and bowels, and is, in fact, a perfect guardian of health’
 
( Shocking? DUH! )
 
Eighteen percent of households had at least one full-time servant or domestic help.
 
There were about 230 reported murders in the ENTIRE U. S.
 A. !

Trump’s cabinet of oligarchs: So much for ‘draining the swamp’

The following letter was highlighted in the Los Angeles Times today (December 3, 2016). It does reflect my opinion.

Congratulations to those of you who voted for President-elect or failed to vote because you weren’t happy with the choices. (“Trump to preside over the richest Cabinet in U.S. history“,Dec. 1)

You didn’t get Hillary Clinton, but here’s what we all got: 

  • Possibly the loss of health insurance for more than 20 million people and the loss of Medicare or Medicaid benefits to millions of the poor or elderly. 
  •  A potential Environmental Protection Agency administrator who doesn’t believe in climate change. 
  •  A billionaire who has never attended a public school as the next Education secretary. 
  • A former Wall Street banker as the next Treasury secretary. 
  • Another billionaire affectionately known as the “king of bankruptcy” as the next Commerce secretary. 

But don’t worry. Trump said he wouldn’t be controlled by Wall Street or special interests. He said he owes no favors to anyone. Still, we know he will never fully separate himself or his family from the wealth he has amassed. We know that he will continue to profit from his overseas holdings, whether directly or into the pockets of his children. We know that his own interests could put our country in danger.

How do we know? Because about the only truth Trump has ever uttered is that winning at any cost is all that matters to him. And now that he has been elected, to hell with the rest of us.

Terrie McKinley, Aliso Viejo

There are no Affordable Housing Requirements in Los Angeles

We have a living problem in Los Angeles that is prevalent in all the large coastal metropolitan areas of California. The cost of housing is too high for many families.

Los Angeles County has added more than 475,000 jobs since the depths of the Great Recession, and it’s expected to gain another 334,200 jobs by 2020 according to the Los Angeles County Economic Development Corp. in a report they just released. The families that have these jobs cannot afford most of the housing in this area.

The L.A. County report notes that more than a third of the county’s projected job openings over the next five years will require workers without a high school diploma and no work experience. Another 30 percent will go to people with a high school diploma or the equivalent with no work experience.

As the number of jobs has grown so has the number of new apartments throughout the area. The problem is that the new housing is renting for what the builders and owners say are “market rates.” Those are rates that I call “unaffordable rates.” Despite the need for affordable dwellings the cities and towns of the Los Angeles metropolitan area have approved the construction of those unaffordable units for those obtaining the new jobs.

In my own community the local community council approved a 150 unit development that consists of one bedroom, two bedroom, and three bedroom units. The two bedroom units are going to rent for $2,200 per month. Older two bedroom units are currently renting for $1,500 to $1,700 per month.

apartment-house-proposed-in-silver-lake

Rendition of Apartment House Proposed in Silver Lake District

Developers seem to think that 10% of their new projects devoted to “affordable housing” is sufficient. A 33 unit project in my community includes 3 affordable units. A proposed 67-unit apartment complex in Silver Lake area includes seven of the units to be reserved for “very low-income residents.”

Citing an affordable housing crisis of “epic proportions,” the California Supreme Court made it easier Monday for cities and counties to require developers to sell some housing at below-market rates. The unanimous decision, written by Chief Justice Tani Cantil-Sakauye, follows study after study documenting a lack of affordable housing in the state, especially in California’s coastal regions.

The decision clears the way for Los Angeles and other cities to require developers to sell a percentage of the units they build at below -market rates as condition of a building permit. Developers also could be given the option of paying into a fund for low-cost housing.

Where is the Los Angeles City Council and the Los Angeles County Supervisors? There is no law that requires affordable housing in new developments. The city will permit variances to zoning and use that as an opportunity to require affordable housing.

Not a Member of a Political Party

I am not registered as a member of any political party. Given my interest in politics it may seem an unlikely scenario. Let me tell you my reasoning.

The Republican Party historically in the 20th century was the party supporting business. They fought for lower taxes and less regulation. Who can be opposed to those objectives? Then the conservative religious groups evolved inside the G.O.P. Instead of being the business party they became the party of Evangelical Christians and other orthodox religious groups that put their religious beliefs ahead of business and the rights of non-believers. Today, thanks to Donald Trump, the G.O.P. has become the party concerned with helping the working classes of the country and the party of the extreme right wing (alt-right/neo-Nazi) hate groups. This is not a pretty picture.

Sadly the Democratic Party is no longer the party of the working class and middle class America. Extreme left wing socialists have become the driving force within the party. Senator Bernie Sanders has become a leader of this socialist perspective. America does have some socialist services but not to the level that the left wing aspires to bring to America. Social Security, Medicare, Medicaid, and welfare for the needy are all socialist programs but I do not support government ownership of businesses that should be operated privately (car manufacturing companies, aircraft manufacturers, etc.).

Third parties have had an inconsequential impact on American politics.

I am left with selecting candidates that have said or done something that catches my attention. I voted for both Democrats and Republicans in November. Some races were left unmarked for any candidate.

Donald Trump appears to be a thin skinned man who takes every slight as a major insult to him. How will he conduct himself as president? His behavior as a candidate has not changed since he won the election. The only thing that might stop him from starting a nuclear war might be the decisions of a wiser military.

How did America get itself into such a predicament?

The Fairness Doctrine

From 503ME Blog

We used to have something called the fairness doctrine –

The Fairness Doctrine was a policy of the United States Federal Communications Commission (FCC), introduced in 1949, that required the holders of broadcast licenses both to present controversial issues of public importance and to do so in a manner that was — in the Commission’s view — honest, equitable, and balanced.

Fairness Doctrine – Wikipedia

It was abolished under Reagan
Under the Reagan administration, the FCC killed the Fairness Doctrine (in 1987), doing away with a policy — put in place in 1949 — that required broadcasters to cover controversial issues of public importance and offer contrasting viewpoints on those issue
The equal time, or more accurately, the equal opportunity provision of the Communications Act requires radio and television stations and cable systems which originate their own programming to treat legally qualified political candidates equally when it comes to selling or giving away air time.
The law against using propaganda on American citizens was eliminated in 2013.  And then the supreme court ruled it legal for politicians to lie-
, “The truth or falsity of political speech should be judged by voters, not government bureaucrats” became the law concerning if you can sue a politician for lying during a campaign…..in other words, the courts are not going to make a decision of rather or not a politician lied during a campaign. If you think the politician is lying to you, then don’t vote for him or her
Then there is the court case in Florida where the courts ruled that it was legal for fox news to fire two reporters who refused to lieIn February 2003, a Florida Court of Appeals unanimously agreed with an assertion by FOX News that there is no rule against distorting … FOX appealed the case, and on February 14, 2003the Florida Second District Court of …
 now we have Facebook and google saying that they will try to curtail fake news sites-
This is the reason why we do not have actual news in our country and also 95% of our media is owned by only 6 mega media corporate giants and that means all media and not just news.

The Future of Jews in America

Historically, when a country has economic issues the leadership frequently blames the Jewish population.  It is a convenient scape goat that is usually a small part of the total population.

‘Hail Trump’: That’s how a group of white nationalists saluted the November 8 victory of the president-elect this weekend at the annual conference of the National Policy Institute, as seen in an exclusive video filmed by The Atlantic. The disturbing scene came during an after-dinner speech by alt-right leader Richard Spencer, who among other anti-Semitic and racist statements described America as “a white country designed for ourselves and our posterity.” His audience cheered, and many raised their arms in Nazi salutes. Trump has not endorsed these statements, of course, nor has he asked white nationalist groups for their support. But the sentiment is alarming.

Meanwhile Congressman Keith Ellison is the leading candidate to head Democratic National Committee.  A growing number of pro-Israel activists and Jewish community figures are expressing concern that Minnesota’s U.S. Rep. Ellison will turn the Democratic Party away from Israel if he is elected party chairman.

While I am not a Zionist I do appreciate the fact that Israel is the only majority Jewish nation in the world.  “Hail Trump” frightens me and so does a congressman who has a history of relations with Louis Farrakhan’s Nation of Islam movement. The Jewish News Service reports on Ellison’s relationship with Farrakhan in detail.

My family thinks I am too involved with politics and my fears are unfounded.  Sadly history seems to support my fears.

The Greatest Concept Cars of the 1950s

In the 1950s, the American economy was booming, the suburbs were sprawling, and automobiles took on newfound importance. At the same time, inventions, pop culture, and technological innovations touched our lives in new ways, from the Space Race and the credit card to the Barbie doll and beyond. With jet planes and research rockets soaring above us, not even the sky was the limit anymore.
Few objects of any sort embodied the spirit, the extravagance, and the confidence of 1950s America as well as the concept, or “idea,” cars displayed at the country’s auto shows and, in some cases, on its roads. Designers and engineers experimented with wild styling, clever features, and new solutions to old problems, some of which worked and some of which didn’t. The Jet Age was upon us, and the carmakers were not about to let us forget it. And so you don’t forget them, here is a collection of what we consider to be the greatest concept cars of the decade.

1951-gm-lesabre

1951 GM LeSabre

No company put out more captivating concept cars in the 1950s than General Motors, in large part thanks to GM design boss Harley Earl, who dazzled the world in 1951 with the GM LeSabre. The LeSabre (a name not yet associated with Buick) captured the dawning Jet Age from every angle, starting with the protuberant center grille that concealed twin headlamps. Its distinct, fuselage-like upper body contours flowed all the way to its afterburner-like center taillamp, all flanked by low and wide fenders and tailfins sprouting from its outboard flanks. The latter theme continued to define the era. The LeSabre was a runner, too, powered by a 335-hp aluminum supercharged V-8 with a rear-mounted automatic transaxle. But unlike most concept cars that followed, the LeSabre was no trailer queen: Earl used it as his everyday ride for a few years, ultimately putting 45,000 miles on it. Strong public reaction to the LeSabre helped convince GM to include concept cars in its famous Motorama traveling car shows of the 1950s.

1956-oldsmobile-golden-rocket 
1956 Oldsmobile Golden Rocket

Oldsmobile was a powerhouse in the 1950s, and its shark-nosed Golden Rocket concept, which made the rounds as part of 1956’s General Motors Motorama, showed how ambitious the brand was. Decidedly sporty, if a little strange-looking with its round headlamps tucked between the skinny grille and high-set, missile-like fenders, the fiberglass-bodied Golden Rocket could have outaccelerated a Corvette at the time, thanks to its 275-hp V-8 and lithe 2500-pound curb weight. Sadly, few of its nifty styling features made production, save for the wraparound split-rear-window treatment, which appeared on the 1963 Corvette. As fast as it was, its luxury features were equally interesting, including a power-tilting steering column, seats that automatically raised and swiveled out when the doors opened, and twin roof panels that tilted upward to facilitate ingress and egress, adding even more drama to arrival.

 1954-lincoln-futura
1954 Lincoln Futura

Italian coachbuilder Ghia kept busy in the 1950s and built the gorgeous Lincoln Futura in 1954 for display at the 1955 Chicago auto show. The Futura’s furrowed brow was the most consequential styling element as far as Lincoln was concerned, but the car itself became a cultural icon more than a decade later when, in 1966, it was given a batlike face, fluted fins, and black-and-orange paint, becoming—you guessed it—the Batmobile for the Batman series. Fifty years later, it remains one of the most famous and beloved automobiles in history, selling at auction in 2013 for $4.6 million.

 1953-1954-and-1955-alfa-roneo-b-a-t-cars
1953, 1954, and 1955 Alfa Romeo B.A.T. Cars

Concept cars weren’t just an American thing. In the early 1950s, Alfa Romeo commissioned its fellow Italians at the Bertone design house to assist its aerodynamic research efforts. The collaboration resulted in three amazing B.A.T. (Berlinetta Aerodinamica Tecnica) concept cars: B.A.T. 5, B.A.T. 7, and B.A.T. 9. No relation to Bruce Wayne’s favored ride, Alfa’s trio appeared in successive order at the 1953, 1954, and 1955 Turin auto shows brandishing tapered greenhouses, curved fins, and fenders that were covered in smooth bodywork. Each car looked more producible than the one before it, but they were never built for customers. They did, however, help Alfa Romeo gain a better understanding of aerodynamics, with the best one claiming a heroically low 0.19 drag coefficient, a figure achieved only by the GM EV1 and the Volkswagen XL1 in modern times.

 1955-ford-mystere
1955 Ford Mystere

With its one-piece glass roof, forward-thrusting front fenders, and dual afterburner taillamps, the Ford Mystere could hail from no other time than the 1950s. The Mystere’s four passengers would enter and exit through the rear-hinged swing-up canopy, with the overhead scoop providing much-needed ventilation considering how much sunshine the cabin would get (and that there was no way to open the glass). Intended for a gas-turbine engine mounted in the back, the Mystere is said to have arrived at the 1956 Chicago auto show unable to move under its own power. It also supposedly had a radio telephone between the front seats and an aircraft-like “throw over” steering system that could be moved for operation from either front seat.

 1956-1957-chrysler-dart-diablo

1956–1957 Chrysler Dart/Diablo

Of the numerous Chrysler/Ghia collaborations of the 1950s, the 1956 Dart/Diablo was arguably the greatest. This concept was built on the chassis of a 1956 Chrysler 300 and was originally dubbed the Dart, featuring a low, ovoid, horizontal grille rendered in chrome that streaked all the way down its clean, unadorned body sides. With its smooth body and inset wheels, the Dart was extremely aerodynamic, so gigantic fins were used for stability as well as style. It originally featured a trick, if unreliable, retractable hardtop that slid back in three positions—sunroof, landau, and fully retracted—but in 1957 it was sent back to Ghia, where the elaborate roof was swapped for a more conventional ragtop and the tailfins were shaved down to more relatable proportions. Thus equipped and renamed the Dart Diablo, the nearly 21-foot-long show car was shown to the public at the 1958 Chicago auto show. In 2013, it sold at auction for a cool $1.4 million.