A government study confirms that the income for college graduates, adjusted for inflation, has fallen since 2000. There are a variety of reasons for this--including the most inept fiscal policy on record--but the consequences are extremely worrisome. As real incomes have fallen, the prices of most necessities, notably gasoline and housing, have risen dramatically. This suggests that the measured change understates the real economic hardship facing many American families. Ultimately, these are the middle income families that will provide the underlying strength of the economy, and the vitality of the housing market. It's a big red flag that these folks are not able to keep up with inflation.