THE INALIENABLE RIGHT TO BITCH ABOUT HOW HARD OUR EASY LIVES ARE:

Pressure of the American Dream (Robert J. Samuelson, July 26, 2004, Washington Post)

We'll hear a lot of complaining about the "middle-class squeeze" in this election, but the squeeze is as American as the Constitution. We live in an ambitious and striving society. Most Americans hope to get ahead. They work hard. They like to spend what they earn -- and they also compete compulsively to show how well they've done. As a result, anxiety and angst become a permanent way of life, even when the economy is doing fairly well. Enough is never enough. [...]

On average Americans are the best-housed people in history. Since 1973 the median size of new homes has jumped almost 40 percent, from 1,525 square feet to 2,114 square feet in 2002. Meanwhile, average household size has fallen almost 20 percent, from 3.14 people to 2.58 in 2002. (There are more singles, fewer children and more elderly couples.) Americans have bigger homes for smaller families. Now 36 percent of new homes have four bedrooms or more; in 1987 that was 23 percent. And everyone needs a bathroom. In 1971, 15 percent of new homes had 2.5 bathrooms or more; by 2003, 56 percent did.

No matter. Most Americans want more. The National Association of Home Builders (whose Web site provides all this data) surveys homeowner preferences. It finds that 64 percent want to "trade up" and only 14 percent would "trade down." Even among those 65 and over, 39 percent would trade up, compared with 28 percent who would trade down. On average, homeowners want houses almost 30 percent larger than at present; 44 percent want four bedrooms or more.

Housing dominates most family budgets; therefore, the quest for bigger homes underpins the middle-class "squeeze." But government won't do anything about it. Homeownership is the essence of the American dream. Indeed, various federal subsidies promote the demand for more -- and bigger -- homes.

Still, it's understandable that John Kerry likes the "squeeze" theme. The appeal is widespread, precisely because so many people feel -- or fear -- it. Kerry can also offer superficial solutions: new tax write-offs for college tuition; new subsidies for health insurance; promises to cut dependence on costly foreign oil. Similar solutions have been offered before and, had they worked, wouldn't be needed again. The other advantage of focusing on the middle class is that it distracts from dealing with the poor. Here, Kerry has made some proposals (particularly for health insurance), but his emphasis remains on the bigger political target.

The truth is that abolishing the middle-class squeeze is an impossible and undesirable task. Suppose the demand for bigger homes was suppressed. The urge to get ahead would pop up in other areas of aggressive consumption. As the upper-middle class indulges new tastes, it raises the bar for the middle- and lower-middle classes. The only way to stop this competitive cycle is to persuade Americans to be less ambitious. Why would anyone want to do that?

It's working so well in Europe...

Posted by Orrin Judd at July 27, 2004 6:50 PM