The Wall Street Journal examines the Knowledge Deficit in economics. Russel Roberts writes:
Whenever I teach a seminar on basic economics, I always survey the audience: What proportion of the American labor force earns the minimum wage or less and what is the standard of living of the average American today relative to 100 years ago?Even among highly-educated groups such as journalists or congressional staffers, the median answer is depressingly similar — they think 20% of the American work force earns the minimum wage or less. In fact, the actual number is something less than 3%. Usually a non-trivial portion of each group thinks that our material well-being is lower today than 100 years ago. Their median answer is that we are 50% better off than we were 100 years ago. In fact, the average American is at least five and maybe 30 times better off than we were in the good old days. There’s a dramatic range because it’s hard to value the opportunity to listen to your iPod while recovering from open heart surgery. But 50% is a very bad answer.