The Cost of Equality

A brief analysis of macroeconomic data reveals that there is growing income inequality in the United States. Income inequality has many undesirable outcomes such as political division, unemployment, and large public and private debt (the former is now more than 100% of GDP and the latter is just over 200%).  The progressive tax in the … Continue reading The Cost of Equality

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“The Subprime Solution”: a must-read

I purchased this book on a whim a few weeks ago. My high hopes were satisfied as Shiller gave insightful explanations of how the subprime bubble occurred and offered innovative short-run and long-run suggestions for minimized the risk of another crisis. Here are a few of his propositions: Democratize finance. A major cause of the … Continue reading “The Subprime Solution”: a must-read

The Unstarvable Beast: The Need for more Effective Government Spending

Revealing article by Harvard’s Kenneth Rogoff linked above… Key Takeaways:  The government operates in the service industry, which generally exhibits slow productivity growth. While productivity growth is slow, the industry is still forced to pay higher wages for relatively the same output because it competes for workers in the same labor market as other, high-productivity … Continue reading The Unstarvable Beast: The Need for more Effective Government Spending

The Welfare Cliff(s)…

After viewing the entirety of “Welfare’s Failure and Solution” (linked below) I found the graph below to be the most informative…and frightening. The x-axis lists raw, unadjusted income and the y-axis lists income after taxes/entitlements. Ignoring the entitlements, we see that even though we have a progressive tax system, there is still incentive to climb … Continue reading The Welfare Cliff(s)…