How to Help the Middle Class

by Matthew Continetti for National Review

Ed Conard, former business partner of Mitt Romney and author of Unintended Consequences and The Upside of Inequality, appears on the most recent episode of Conversations with Bill Kristol. The interview is worth your time. It arrives at a moment when conservatives are debating what economic policies are best for the middle class. Conard challenges some widespread assumptions and offers intelligent if controversial suggestions.

First, like his American Enterprise Institute colleague Michael Strain, Conard says the middle class is neither stagnating nor disappearing. He cites a study last year by the Congressional Budget Office that found middle class incomes grew around 45 to 50 percent between 1979 and 2015, and 10 percent in the years since. Also, Conard’s review of the academic literature leads him to conclude that the middle class is either stable or shifting upward. He cites a recent Pew study that found the share of Americans living in middle-class households falling from 61 percent in 1971 to 52 percent in 2016. When you look into the numbers, he says, most of the decline in the “middle class” over the last 40 years can be attributed to people’s enrichment. Much of the rest is from an increase in low-skilled immigration.

Politicians and journalists often compare America unfavorably to Nordic countries. Conard says this is a convenient appeal for votes and ratings.“If you look at the average Scandinavian American, today he’s earning about 50 percent more than the median Scandinavian in Scandinavia.” America provides more innovation, more growth, and more jobs, at higher wages, than our European allies. “France hasn’t created a new large company since the 1970s.”

How to Help the Middle Class

by Matthew Continetti for National Review

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