by Calculated Risk on 12/05/2005 12:26:00 AM

My Angry Bear post builds on my previous demographic posts: The Best of Times. The post includes an enhanced animation of the demographic changes from 1900 to 2050 (based on Census Bureau projections).

Recommended:

Dr. Duy's Fed Watch: Looking for a Reason to Worry ...

And excerpts from Paul Krugman's: Joyless Economy

"It should have been a good year for American families: the economy grew 4.2 percent ... Yet most families actually lost economic ground. Real median household income ... fell for the fifth year in a row. And one key source of economic insecurity got worse, as the number of Americans without health insurance continued to rise. ..."

I believe this story of a bifurcating US economy is important. In the roaring 20's many families were struggling because of increased productivity on farms (due to the farm tractor). This shows up in the demographic numbers - the start of the Baby Bust was before the start of the Depression.

The improved farm productivity (a good thing) contributed to a period of depressed wages for a large segment of America (a bad thing) and was a factor in the Great Depression. It really is important that a rising tide floats a vast majority of boats. That didn't happen in the 20's and its not happening now.

Best to all.