| I recently debated with author and economist Dr. Gregory Clark, who argues that there is no social mobility in this country. In his view, you are statistically unlikely to rise above the economic quintile that you were born into. There is a problem with his argument, however. It is demonstrably untrue. Most readers have experienced economic mobility themselves. Part of growing older is moving from earning no income, to earning minimum wage, to performing low-skill jobs, to landing better jobs - thanks to education and training - to earning your peak income (due to greater experience), to retiring and earning less. This is a fundamental part of most workers' experience. And it results in increasing income mobility right up until retirement. Workers who, in addition, live within their means, save, and invest generate substantial assets as well. And higher income and greater wealth make it far easier to live the American Dream. I can now look back a half-century to my high school days and recognize dozens of men and women who followed this path. And I've met many hundreds more along the way. This is merely anecdotal evidence, of course. (Although I'll bet your experience is similar.) A scholar like Dr. Clark would insist on reliable and convincing statistical evidence instead. And there is plenty of it. A few years ago, Senator Phil Gramm, Dr. Robert Ekelund, and Dr. John Early - three men with different political views - co-authored an excellent book entitled, "The Myth of American Inequality: How Government Biases Policy Debate." The authors note that there are essentially two ways to assess income mobility. The first one measures changes in income over an individual's lifetime (as I described above). The other - Dr. Clark's particular interest - measures the change in children's income compared to the parents. (Intergenerational social mobility, in other words.) Combining data from the Census Bureau, the Treasury Department, and the Pew Charitable Trusts, the authors demonstrate the following... - The vast majority of Americans have experienced rising real incomes over all extended periods in the nation's history.
- No matter what step of the economic escalator individuals begin on, rising productivity tends to increase inflation-adjusted earnings over time.
- Those who exert more effort - through education or persistence - earn even more.
- Multiple studies reveal a high level of mobility no matter what income level a child was born into.
- Almost 90% of adult children's economic success comes from factors not related to the income ranks of parents.
- For children reared by parents in the bottom income quintile, 93% grew up to have more income than their parents.
- They conclude by saying, "Economic mobility is alive, powerful, and widespread in America today."
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