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Apr 10, 2008 -- Re-training, new skills the key to career moves

CLARKONOMICS: Are Americans going backwards economically? That's how some of the financial press is spinning the latest findings of the Pew Research Center. Only 4 in 10 people feel they're moving forward -- and that's a record low. Of those who define themselves as middle class, 80% say they can't maintain their standard of living. This, of course, translates to lack of optimism about the country.

When you look at the last 5 years, there has been some distortion in the economy and some trends have squeezed people. But look further back to the '70s. The average American family income is 40% higher than it was one generation ago. That's practically unprecedented for an already developed economy. Meanwhile, the average family is 35% wealthier in terms of net worth than a generation ago.

Yet the Pew findings ring true. The middle class is hollowing out. In town after town, the non-skilled union jobs have steadily been evaporating as our manufacturing base declines. The kinds of jobs that unskilled laborers now have to get as a replacement typically pay much less and don't have a pension or benefits. So what's happening is that our country is dividing into 3 distinct groups: One third of Americans are making really decent money; one-third have low incomes and are not doing so well; and one third are in the middle. Clark's never seen this kind of split in his lifetime; the classic bell curve of yesteryear is gone and that's why there's unease.

Even if you're mid-career, you've got to reinvent yourself. This is the real challenge as we face global competition. The free trade genie won't go back in the bottle. Clark wants to hear political discourse about how to start re-training mid-career people. Community colleges and state-sponsored technical schools are both great venues to gain new skills or get re-training.

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What others are saying

  • retraining
    So when are we supposed to do this retraining? Before or after the 10 hour day and long commute? Get real
  • Average Income Higher
    Clark should know better than to use a statistic like Average Income. This is a joke among economists ... the classic "Bill Gates walks into a bar" scenario. Five guys sitting in a bar making an average of $30,000 per year, and in walks Bill Gates and all of a sudden the average income is in the hundreds of millions. The better statistic is Median Income (the income of the person at the 50th percentile - the guy in the middle). Family Median Income rose 16% from 1973 to 2005 (not 40% like Clark said - that was the average, and the effect of the super rich). During this period many households went from 1 earner to 2 earner, so the average guy is working more to stay the same, or get ahead slightly. So, in the future I'll be more careful when I'm listening to Clark ... and more critical.
  • average income 40% higher than one generation ago
    the average american worker is now expected to work harder and faster than ever before. he works much longer hours now- he must sacrifice his quality of life- to try to please the corporation hoping- to just- keep his job. his benefits are dwinding- he pays much more for insurance and deductables now- for less coverage- eating at his paycheck. his stress related illness- cause him frequent dr visits. he watches the corporate profits and top executives share go higher and higher. the few luxary items- his hard work - earned him in the past- are denied him now- - not within his budget- besides- he knows he could lose his job tomorrow- they could send his job to - china- etc- if he isnt fast enough- they tell him that- often enough.

    there is something -terribly wrong here. compare us with other countries- who you say make better products- you may find happier- fairly treated human beings- in those non- third world countries- we like to think we are better than-
    its not all - progress- and the workers need to change- the worker is willing to change- but wants to earn a living wage- so how much does the top get to keep- before we get to call it - corporate greed.
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