Working families have seen little if any progress over the past 30 years. Adjusted for inflation, the income of the median family doubled between 1947 and 1973. But it rose only 22 percent from 1973 to 2003, and much of that gain was the result of wives' entering the paid labor force or working longer hours, not rising wages.
Maybe Professor Krugman has never heard of the concept of diminishing marginal return. I don't have an economics PhD, but doesn't it stand to reason that as an economy develops through industrialization, its rate of growth would diminish? That is why China is able to attain growth rates pushing 10%, while the US is doing good at 4%. Why doesn't the good professor compare our income growth with equivalent economies over the last 30 years. Say Europe for example. Once again, I will post this easy to read graph, without any "shaping, slicing and selectively presenting data", and would someone please explain to me how things are getting worse for the American worker.
Unemployment Rate by Month 1975-2005