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« Weighing the Week Ahead: Do Sidelined Investors Face Upside Risk? | Main | Four Costly Ideas »

November 16, 2013


Kevin Erdmann

Thanks for all your great analysis.

I do think we have to be careful about interpreting the wage and income data, though. The baby boomers cause a lot of distortions in the aggregate numbers. I've looked at a lot of this. Here's a post I did on the effect of age on income inequality:

There is a bulge in the number of workers just entering the work force and those of retirement age. Both of these age groups create statistical income variance. Also, we have a lot of people leaving the workforce, generally from their lifetime highpoint in income, and a lot of people just entering the workforce. So, we should probably expect a functioning economy to show an increase in lower income jobs and a decrease in high income jobs, just to match the demographic reality.

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