Market Correction

Krugman vs. Krugman, II
26 November 2007

The Editor, New York Times
229 West 43rd St.
New York, NY 10036

To the Editor:

Paul Krugman now alleges that in 1998 "Wages were rising, yet inflation was low, so the purchasing power of workers’ take-home pay was steadily improving" ("Winter of Our Discontent," November 26). Yet in October 2005 Mr. Krugman lamented that "it has been a generation since most American workers could count on sharing in the nation's economic growth. America is a much richer country than it was 30 years ago, but since the early 1970's the hourly wage of the typical worker has barely kept up with inflation" ("The Big Squeeze," October 17, 2005).

Which is it? Did workers' wages rise for at least some years during the Clinton era, or did they stagnate?

Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on Sunday May 11, 2008 at 11:18am

Post as: [Register] [Log In]

Account:
Password:
Remember info?