Although the money incomes of middle-class households have been rising very slowly for three decades, the focus on cash income is misleading

See The U.S. Economy Is in Good Shape: As we shake off the effects of past Fed policy, many signs are good. But the 2016 race has seen some alarming proposals floated. by Martin Feldstein in the WSJ. Mr. Feldstein, chairman of the Council of Economic Advisers under President Ronald Reagan, is a professor at Harvard and a member of the Journal’s board of contributors. Excerpts:

"The CBO explains that once corporate and government transfers are added to market incomes, and federal taxes are subtracted, the real income after transfers and federal taxes is up 49% between 1979 and 2010 for households in the lowest income quintile (with average total incomes of $31,000 in 2010). Real income is up 40% between 1979 and 2010 for households in the middle three quintiles (with average total incomes of $60,000 in 2010).

Even that understates the true growth rates of real incomes, because government statistics don’t fully capture improvements in the quality of goods and services."

"The 70% decline in the price of oil since early 2015 will eventually turn out to have a positive impact on U.S. economic growth."

"But the fall in gasoline prices alone has increased annual household spending power by about $129 billion or more than $1,000 per household. Although households have temporarily plowed much of this found money into savings, we are likely to see it lead to increased consumer spending in 2016 and 2017."