Falling Behind

July 1, 2007
Economist Frank argues that rising economic inequality harms the middle class, and he uses familiar examples to teach us about consumer behavior. One interesting example is the buying of larger and larger houses by those at the top levels of income and wealth, whichleads families in the middle to spend a greater percentage of income on housing in order to send their children to a school of average quality. They must then spend less on other important categories while their real purchasing power over decadesstagnates. We learn about the role of technology in shaking out industries where a few become big winners and the rest hardly make it, explaining why foreign competition isnt always the reason. Franks recommendation in favor of a progressive consumption tax is certain to draw controversy. This is an excellent book, written in an easy, understandable manner, alive with important examples of how our society spends its money and who are the winners and losers.(Reprinted with permission of Booklist, copyright 2007, American Library Association.)