Typical Family Income Has Fallen in Recent Years
(Washington, D.C.) – For the first time since the Great Depression, the income of the typical American family has fallen over the last 15 years rather than risen. While the median, inflation-adjusted weekly earnings of full-time workers began to rise after the economic slowdown that began in 2006, it has fallen in the years since 2009. The New York Times reports that the decline is due to a variety of factors, including higher costs for health care and for energy (which have begun to fall), a weak educational system, and a government which is not responsive or nimble.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
"By any reasonable measure, Washington is failing in its attempts to put in place policies to expand economic opportunity and improve people's standard of living. For the first time since the Great Depression, the typical American family is seeing income fall over an extended period – not just for a few months. With costs for basic necessities rising, and Washington policies inflating the costs of education and health care, it is no wonder families feel more and more financially stressed.
The president's approach thus far has been one of higher taxes and more regulation that will not allow innovative businesses to flourish, nor launch new start-ups. Washington must safeguard America's free enterprise system, strike a blow to cronyism, reward success, and ensure that the middle-class is not burdened with the responsibility of sustaining the cost of more and more government programs.
It's time for a new approach – one that uses the power of free market competition to bring down costs – rather than relying on government mandates and higher taxes and spending. If Washington would back off – way off – and get out of the way of the employees and the entrepreneurs who provide them much-needed jobs, they could then get to the business of building better futures for themselves, as we have proven in the past."