Recently Bruce Meyer, Professor of the University of Chicago, gave an interview for EconTalk about poverty, the middle class, and inequality. His research uncovers some of most important mistakes that have caused a whole bunch of misleading income statistics.
The talk includes one aspect that is hardly realized among non-economists, namely that long-term corrections for inflation are very difficult. Taking into account quality improvements and new products (and who buys them) basically distorts most long-run comparisons. Thus, statements such as “The average American worker today is hardly better off than thirty years ago” are nothing but utter nonsense.
In case you disagree, just go to a doctor and ask him what he could do for you with medicine of the 1970s.
Swiss Economist 