Group items tagged

Mr. Abramitzky and Ms. Boustan observed the same pattern a century later. Children born around 1980 to men from Mexico, India, Brazil and almost every other country outearned the children of U.S.-born men.

“America really does have golden streets that allow immigrants to quickly make more than they could have earned at home,” they write. But, they add, “moving up the economic ladder in America — and catching up to the U.S.-born — takes time.”

They are more likely, Mr. Abramitzky and Ms. Boustan found, than immigrants of the past to come from countries that are significantly poorer than the United States, including El Salvador, India and Vietnam

They arrived at two answers. First, the children had an easy time outdoing parents whose careers were inhibited by poor language skills or a lack of professional credentials

they tried to figure out why those children did so well

If immigrants are so upwardly mobile, why doesn’t it seem that way? One reason is that there are more newcomers than there have been in decades and most haven’t had time yet to get ahead. The share of foreign-born people in the United States is back to the levels of the first two decades of the 20th century.

Second, immigrants tended to settle in parts of the country experiencing strong job growth. That gave them an edge over native-born Americans who were firmly rooted in places with faltering economies

In contrast, affluent, educated immigrants tend to be the least upwardly mobile, simply because they’re already at or near the top.

Mr. Abramitzky and Ms. Boustan dispute the argument that immigrants frequently take jobs from native-born Americans. Less skilled immigrants gravitate toward jobs for which there is relatively little competition from native-born Americans, such as picking crops, while highly skilled immigrants often create more jobs for native-born Americans by starting businesses and inventing things,

The notion that immigrants have become a permanent underclass, isolated from the American mainstream, is popular among immigration restrictionists — as well as among some pro-immigration groups that say immigrants need more help to break out of poverty

The truth is that today’s immigrants are advancing just as swiftly as those of the past. “The American dream,” Mr. Abramitzky said in an interview, “is just as alive now as it was a century ago.”

The basic driver is this: “Europe has an aging population that values its free time and social benefits over work and productivity. (This reduces labor force participation, innovation potential, and the economic growth of the continent.)

The eurozone economy grew about 6% over the past 15 years, measured in dollars, compared with 82% for the US, according to International Monetary Fund data. That has left the average EU country poorer per head than every US state except Idaho and Mississippi

If the current trend continues, by 2035 the gap between economic output per capita in the US and EU will be as large as that between Japan and Ecuador today

even in Smith’s figures, there is no Northern European economy that outperforms the US.

The US economy has grown 82% in fifteen years! Barring anything more than a mild recession, that means that we can expect the US economy to more than double by the time we hit 20 years from 2008. Isn’t that wonderful?

It’s not just a case of doubling the overall size of the economy. The increase in wealth has been widely distributed.

I was struck by a calculation by George Washington University’s Stephen Rose that he describes at a center-left newsletter called The Liberal Patriot

Deciding what is “middle class” versus “lower middle class” versus “upper middle class” is difficult, and every analysis sets up different cutoffs between these categories. But Rose sets a reasonable level, describing “upper middle class” as an income between $100,000 and $350,000

Using this measure, there was real growth in every rung of the economic ladder over the period from 1979 to 2019, with each ascending step having slightly higher percentage gain….

In brief, economic growth from 1979 to 2019 led more of the population to move up to higher social classes. As Table 1 shows, the bottom two categories—poor and near-poor plus lower middle class—went from a combined 49 percent to 29 percent

The size of the [core middle class] also declined, down from 39 percent to 31 percent over these years

These declines manifest themselves in a massive—and massively under-covered—growth of the [upper middle class], spiking from 13 percent in 1979 to 37 percent in 2019.

America has always thought of itself as a middle-class country. But we are rapidly becoming an upper-middle-class country

This is now the largest category, and at the rate we’re going, it will soon be an outright majority.

upper-middle-class people can afford more welfare-state spending, and they also have more access to education and, frankly, the luxury of agonizing over something other than our pocketbooks. It has been a long time since most Americans were concerned about how to put a roof over our heads, so we have moved on from “kitchen table” issues to concerns about values and status and self-image.

in this context, the Old Left welfare-state programs look, not merely unnecessary, but callous and cruel

the incentives created by welfare programs discourage work for the poor. But in a growing and thriving upper-middle-class country, this looks like a way to create a permanent underclass who are kept in poverty so we can congratulate ourselves on our compassion and generosity

some of this may also explain the right’s belligerent opposition to immigration. If we are becoming an upper-middle-class country, perhaps we are taking on some of the attitudes of a gated community that wants to keep out the riff-raff.