Krugman lists several of the defenses against data on rising inequality used by conservatives; he then focuses in on the argument that middle class incomes may have decreased, but they have more money left to spend on discretionary items because the cost of satisfying their basic needs has fallen. One of the "economists" who has used this argument (Boudreaux) works at the Mecatus Center at George Mason University, which is funded by David Koch, and also specializes in global warming denial. Boudreaux made a recent appearance on CNBC to state his argument. Krugman's critique of the argument will reach a very select portion of NY Times readers. CNBC gives Boudreax an audience of millions. The other author of the "study" is a fellow at the conservative American Enterprise Institute, which is also funded by the super-rich. AEI will make sure that the conclusions of the study get picked up by the media.
Krugman's critique could also have been stronger than it is. For example, spending on healthcare is not included in the category of basic spending. Spending on healthcare is a necessity and it has grown at twice the rate of inflation. Spending on higher education is also a necessity for many families. The cost of higher education at public colleges has also risen rapidly over the last ten years as states have cut back on funding. Families are using debt to make up the difference. The argument that the middle class is better off despite growing income inequality is utter nonsense. Unfortunately, our oligarchs are able to fund this nonsense, and they have the means to distribute the nonsense through the media. I'm waiting for David Brooks, George Will, Robert Samuelson etc. to pick up on that theme. Right wing "think tanks" provide them with much of their information.
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