In his latest Marketwatch piece, Cato Institute’s Norbert Michel dismantles the myth that globalization gutted America’s middle class. The populist story of economic disaster is dead wrong and used as an excuse to clamp down on trade and freedom.

The American middle class has not experienced a decline since the 1970s; in fact, quite the opposite is true. Income growth in the U.S. has been strong and broadly distributed across demographics. Real median household income has risen significantly, and the proportion of high-income households has increased, while the share of lower-income households has decreased. Even workers in the lowest income brackets have seen upward mobility, with income gains extending across age groups and marital statuses.

Moreover, the decline in manufacturing jobs was not driven by free-market policies, but because U.S. factories now produce far more with fewer workers. As Michel points out, “America simply doesn’t need to employ as many people in manufacturing because it’s so much more productive.”

Michel warns that current populist policies – clamping down on trade, immigration, and basic freedom – amount to a recipe for shrinking most people’s economic opportunities: “It’s impossible for a nation to shrink its way to prosperity. If these policies aren’t soon reversed, Americans will end up with much less of the prosperity that was so widespread over the past few decades.”

You can read the full piece here.

If you would like to speak with Michel, please reach out to Madison at pr@​cato.​org.