The Brutal Economic Truth Behind the Rise of Trump
I would say this brings together a few posts that have been getting some attention, as well as seems to analyze exactly what is Trumps magnetic attraction to people. Something if the Republicrats only looked at, they would have been able to figure out, if they didn't just keep opening up the body bags and rolling the next one in line out.
I see this as making two claims:
1) Much of Trump's support is based on CPI-adjusted incomes falling 7.5% since 1999.
2a) With productivity and earnings growing, a decline in median wages must have a simple explanation.
2b) The simple explanation is trade.
I disagree with 2a: We could have had an anomalous period of income parity due to gov't controls in the economy followed by a post-war boom that made up for the negative effects of those gov't controls. After a couple decades, that situation becomes history, and there's no reason to think the anomaly would continue. The 7.5% drop in real median wages (would be less if they had used the GDP deflator to adjust for inflation) may just be noise and/or reversion from a past anomaly.
I disagree with 2b: Trade actually creates value. The author seems to think if we just keep people who want to trade from trading, the 1950s will return.
It concerns me that a minor fluctuation in median income could cause people to embrace fascism or socialism. I'm concerned what effect automation will have, since it tends to create value for top producers.