Average Columnist
24 March 2006
The Editor, New York Times
229 West 43rd St.
New York, NY 10036
To the Editor:
Paul Krugman is correct that an increase in average income doesn't mean that typical workers are earning more ("Letter to the Secretary," March 24). But his logic cuts both ways. Just as Bill Gates' entry into a room raises average income without necessarily raising the incomes earned by others in that room, entry into the workforce of low-skilled workers reduces average income without necessarily lowering the incomes earned by others.
Krugman blithely assumes that measured average income is biased upward by the incomes of rich Americans. He overlooks the possibility that it is biased downward by entry into the workforce of low-skilled workers, especially immigrants.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
The Editor, New York Times
229 West 43rd St.
New York, NY 10036
To the Editor:
Paul Krugman is correct that an increase in average income doesn't mean that typical workers are earning more ("Letter to the Secretary," March 24). But his logic cuts both ways. Just as Bill Gates' entry into a room raises average income without necessarily raising the incomes earned by others in that room, entry into the workforce of low-skilled workers reduces average income without necessarily lowering the incomes earned by others.
Krugman blithely assumes that measured average income is biased upward by the incomes of rich Americans. He overlooks the possibility that it is biased downward by entry into the workforce of low-skilled workers, especially immigrants.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on
Tuesday December 5, 2006 at 6:31pm