Making less money than Dad

[Dr. Whiplash]

NEW YORK (CNNMoney.com) -- American men in their 30s are earning less than their father's generation did, challenging a long-held belief that each generation will be better off than the one that preceded it, according to a new study published Friday. The report, the first in an ongoing 18-month study on economic mobility in the United States, also revealed that the income growth of the median American household is declining.

The study was produced by a handful of politically diverse think tanks including the Pew Charitable Trusts, the American Enterprise Institute, the Brookings Institute, the Heritage Foundation and the Urban Institute. It looked at income levels of American men in their 30s, which can be a good indicator of lifetime income.

Relying on Census Bureau figures, the study's authors found that after adjusting for inflation, men in their 30s in 2004 had a median income of about $35,000 per year, for a 12 percent drop compared with $40,000 per year for men in the same age group in 1974. That stood in stark contrast to men in their 30s in 1994, who earned 5 percent more than their fathers did.

American families, which experienced a 32 percent increase in income levels between 1964 and 1994, saw household income growth slow to 9 percent between 1974 and 2004, according to the report.

"There is clearly some story here that [U.S.] productivity gains are not trickling down to the median family," said John Morton, a co-author of the study and the managing director of economic policy initiatives at the Pew Charitable Trusts.

Even as male incomes have declined and household income growth has slowed, the nation's productivity has remained robust. While the two once kept pace with each other, U.S. productivity has quickly outpaced income growth since the mid-1970s, according to the report.

The study's authors, who plan to examine relative mobility, or the ability of Americans to move up or or down in social strata, said their report shows the canonical belief in an American meritocracy may be unraveling.

"The expectation that each generation will do better than their parents has become a fundamental part of what we call 'The American Dream,'" said Morton. "But this new analysis suggests this bedrock belief may be shifting under our feet."

[fearpeddler]

thats because everything has inflated except for salaries....

[Lester]

Not entirely sure about that one. A lot of technology that "Dad" had to buy, I can buy today for a lot less money... so "inflation" seems to have some hefty offsets.

It should also be pointed out that my dad went to 12 years of public school, got his 4-year pre-med in 3 years (Marshall), followed by 4 years of medical school at WVU, and 4 additional years on an Orthopedic specialty at Bowman-Grey. (I think that last one was actually 2 years spread over 4 since he had a family to support.) None of this factors in required continuing education, etc.

I dropped out of high school at 16, and am somewhere around my Junior year of college in credit hours (after almost 20 years). I deserve to make less money.

[fearpeddler]

My dad has a high school diploma, tahts it and he makes 2k more a year than me... and i barely make 20... and i have 2 college diplomas..

[Dave Allen]

I make less than my dad, as well. He is a high school graduate and I are kollege educkated. The difference (and my old man will tell you this) I actually like my job, LOVE it, in fact. My dad TOLERATES his job that he has had for 30 years because it beats the alternative..not having a job and losing all your shit. There is a tradeoff I guess, in doing what you what you like to do.

[Lester]

OK... in all fairness, unless your dad works in radio, can you really compare his job to yours? Even with a degree?

Except for a select few, this has never been a career of high wage earners.

[Dave Allen]

No, my pappy is purchasing agent for a coal company. I didn't get into radio for the money.

Its was the free t-shirts that got me.

[AmpedNow]

The great thing today is there are more opportunities to better ourselves.

We're all only an idea away from becoming millionaires.

Had I taken computer classes in high school, I would probably be much better off financially than I am now.