The American Standard of Living - For Better or For Worse Sheehan Hanrahan Note pad icons: 1.

Who has received the benefits of economic growth during the past quarter century?
Over the past 25 years, educated workers with advances skills and abilities and more money have received the benefits of economic growth.

2. According to the Rand Corporation, what happened to the real income of the bottom tenth of
American families between 1973 and 1995? The real income, or income adjusted for inflation, of the bottom tenth of American families has decreased by 13% between the years of 1973 and 1995. Many people are concerned that the lower income bracket of the country is ignored and that they are often times left out of the equation.

3. Why should we be concerned by a more unequal distribution of income?

Unequal distribution of income is not something capitalism strives to achieve. Large gaps between rich and poor lead to societal conflict and can cause the public out look of a country to decline.

4. Why do some economists believe this trend is of little concern?

Some economists think that the inequality of income is due to inequality of consumption. Also, There is an increased ability for people who are poor to become more wealthy and government programs such as welfare, social security, and pension all offset the inequality of income, making some economists think that it s not such a big deal to worry about.

5. After reading this article, do you feel the American standard of living is getting better or worse? I agree with the author in that I think that it has become worse for some parts of American society. The lower income brackets of the US have seen a decline in their standard of living. However, wealth people in the top income brackets have seen increases in their standards of living.

1. Go to page 7, "Our Daily Bread." What has happened to the number of minutes worked to buy
food between 1919 and 1997? The number of minutes worked to buy food decreased significantly between 1919 an 1997. This is because of advances in technology and higher productivity over the years.

2. Go to page 6, "Gimme Shelter." What has happened to the amount of hours worked per square
foot of housing between 1956 and 1996?

The number of hours worked per square foot of housing between 1956 and 1996 has decreased from 6.5 hours per square foot to 5.6 hours per square foot. Although this decrease is not too large, it does tell us that family sizes are getting smaller.

3. Go to pages 18-19. What has happened to the work time spent to buy the products on this
page? Just like the other two, the work time spent to buy products has also decreased over time. Again this is due to new advances in the workplace that allow for more to be done in less time.

Conclusion:
1. When you read the data, do you feel the American standard of living is getting better or worse?

After reading the data, i feel that for the most part the standard of living is getting better. More people are going to college and securing better paying jobs. However, the lowest income bracket is seeing a decline in their standard of living. However, I feel there is more increase than decrease.
2. Could the Peter Passell conclusion and the W. Michael Cox and Richard Alm article both be correct?

Yes. Depending on the economic class, the conditions are changing. The people in the lowest income brackets are seeing declines in their standard of living while people in the higher brackets are seeing increases in their standard of living.
3. What can you do to improve your future income and standard of living?

I can try to become more educated. Going to college and pursuing a graduate degree increase my chance of getting a better paying job which will increase my standard of living.