The Mona Charen Show How Americans Can Cease Being Rich
May 19, 2025
Economist Noah Smith, a blogger renowned for his data-driven economic insights, joins the discussion as he debunks the myth of a 'hollowed out' middle class, revealing that wages have actually risen since the 1990s. He critiques protectionism and discusses how political biases skew perceptions of wealth in America, often overlooking the nation's economic resilience. The conversation takes a lighter turn as they humorously assess American cocoa, chocolate, and the implications of leadership during the pandemic on trade and agriculture.
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Middle Class Not Hollowed Out
- The American middle class has not been significantly hollowed out despite common perceptions.
- More people have moved up to the upper class than have fallen into the lower class since 2001.
Manufacturing Output vs Employment
- Manufacturing output has stayed steady but employs far fewer workers due to changing consumer preferences.
- Automation in manufacturing productivity has flatlined since 2008, making American factories less competitive.
Support Workers with Flexicurity
- Adopt policies like Danish 'flexicurity' that help workers find new good jobs quickly after displacement.
- Focus on providing security through job transition support, not preserving outdated job stasis.