Are Americans Really Getting Poorer?

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SteveL, while you are correct on HMOs, you are totally wrong on pensions and the "post-industrial" American society. Technological progress and increased education in America has moved us from manufacturing and heavy industry to services. By the by, trade deficits are not bad. It simply means we import more than we export. It also means that foreigners value American made goods less than they value American made services (if you look at our deficit closely, you will see that America export its services moreso than its goods). It's why manufacturers value a weak dollar more than a strong one.
Pensions are not a guarantee. Pensions sounded nice when America was the primary competitor in many industries; now, pensions can be a drag on company growth and competitiveness (not to mention a drag on employee productivity). Pensions are subject to the full faith and credit of company. If that company folds or suffer hard times, pensions can take a hit. However, 401(k)s and IRAs are owned by the employee and are portable. Sure, if you are not prudent your 401(k) can take a hit, but most 401(k)s and IRAs now possess target funds that automatically switch from aggressive to conservative over time, depending on the fund setup. These funds are also professionally managed so that contributors don't have to mess with them.
Job security is a myth and has always been a myth. It is up to the individual employee to do what he/she can to make themselves productive and useful employees to his/her company.

Chris of AZ 7:39PM July 26, 2008

The American people have been the victims of several "bait-and-switch" schemes since the 1970s:
In the 1970s, we were told that manufacturing and heavy industry were passe; America would be a far better "post-industrial" society of knowledge workers in high-tech offices. Now we're seeing what can go wrong with that, with nearly permanent trade deficits.
In the 1970s, we were told that the newfangled "Health Maintenance Organizations (HMOs)" were just an alternative option to traditional fee-for-service medicine, a reasonable option for healthy young people. Now they've totally replaced fee-for-service medicine, even for elderly people battling chronic illness, for which their own proponents had said they were not really suited.
In the 1970s, we were told that IRA and 401(k) plans would be just a nice option to have for one's retirement nest egg, alongside traditional defined-benefit pension plans. Now the 401(k) has largely replaced the pension plan, adding a huge amount of risk to each worker's retirement planning.
Each time, the American public has lost a little bit more of the job security and "social contract" it once enjoyed.

SteveL of MA 11:24AM July 26, 2008

Umm, Fatesrider, why wasn't the regulator that was supposed regulate Fannie and Freddie not regulating them? Why is the Fed not doing its job of regulating the value of the dollar and inflation? Regulation does more harm than good, even when it is designed with the best of intentions. You are exactly right that government is reactive as opposed to proactive. Why do you think that is? And you're naive if you think regulation does not hurt consumers.

Chris of AZ 5:39PM July 25, 2008

From my perspective, a LACK of regulation and oversight are what have cause all of the bubbles in the last thirty years. Perspectives change, and policies change as well, but government is usually reactive as opposed to proactive, tweaking things where they shouldn't be tweaked and going along with the things that should. Businesses, of course, want NO regulation at all, which hurts other businesses, consumers and America in general.
Prudent regulation is the order of the day. You can't strangle business, nor can you let it run rampant and roughshod over the economy. It's not a prescription our financial markets need, it's a leash - one long enough to allow them enough freedom to do business, but not so much they abuse that freedom.
But because regulation comes from government, and government is elected based on business donations, it's highly unlikely that we will ever get out of the bubble, bust, repeat pattern anytime soon.

Fatesrider of CA 4:28PM July 25, 2008

"Yet key policymakers ignored the signs, in some cases even nudging the bubbles along by endorsing the practices that inflated them."
Although Jared Bernstein admits that government was complicit in inflation created catastrophes, I bet his policy prescription is more regulation and control over financial markets. And this is exactly the wrong type of prescription we need.

Chris of AZ 3:34PM July 25, 2008