Viewing entries in
Politics and Economics

American Households, Part II: Household Income and Number of Earners

My purpose here ... is to understand why some people get stuck in poverty, because you can't hope to fix a problem you don't understand. And part of that is figuring out who needs help and what kind of help.  Sometimes we're talking about old or disabled people, who don't need a job - they just need to help in paying their bills. Sometimes we're talking about young people whose poverty is transient (see that 14% in the lowest income group with a Bachelor's Degree or more?), who don't really need special assistance from the government. And then there are the poorly educated and single parent families.

American Households, Part I: Income and Age

A few observations. Lower income households skew old: 57% are 55 or older, an age group likely to be dominated by retirees and disabled folk.  Affluent households skew middle aged, but once they hit the golden years, their numbers dwindle...

Political Affiliation and the American Dream

In other words, substantial majorities of all political groups feel they've achieved the American Dream or are at least getting there. Yet we hear all the time that "the American dream is dead". Take this Chicago Tribune commentary, "The American Dream is dead, and voters are angry". To quote...

Universal Basic Income: Effect on Labor Market Participation, Part II

As it is, we already have 23 million prime-age (24-54) adults who are not part of the US labor force. Many are unmarried, childless men with limited education and skills. Their numbers keep growing: the rate of inactive prime-age men has more than doubled since the 1970, when it was 4%  It is now 11%.

The Perils of Ideology Gone Amuck

The “world does not end, the blue bird does not return, love does not reveal itself in all of its profound tenderness and charity, and death and mourning and crying and pain do not disappear.” Yuri Slezkine.

Universal Basic Income: Effect on Labor Market Participation, Part I

Here’s what they said they'd rather do with their time:

 

  • Spend quality time with loved ones (55 percent)
  • Pursue a creative passion, like art, music, video (39 percent)
  • Travel (38 percent)
  • Go to school (32 percent)
  • Volunteer (29 percent)
  • Take care of their heath (29 percent)
  • Take care of child (children) (29 percent)

Universal Basic Income: Effect on Full-Time Workers

So we have at least 6.1 million poorly paid full-time workers with limited earning potential. If they had a guaranteed UBI, I imagine some of these individuals would get off the treadmill and manage with the UBI, perhaps working part-time or taking on the  occasional full-time gig.

Universal Basic Income: Lessons from Disability Benefit Programs, Part I

Now what does this have to do with a Universal Basic Income (UBI)? It's part of my project to estimate (roughly!)  how many Americans would drop out of the labor market,  reduce their hours, or otherwise downshift their career aspirations if they could count on an UBI.

Universal Basic Income and the Free-Rider Problem

The number of non-earners (read: non-taxpayers) and part-time workers will likely skyrocket. They will be supported by the rest of the population, especially households in the top two income quintiles.

Wealth: Who Owns What?

Wealth does not measure the inherent value of an asset, only its market value at a particular point in time.   Sources of wealth include real estate, stocks, bonds, bank deposits, pensions, and mutual funds.   One's own home is the main source of wealth for the majority of Americans, except the most affluent.

The High Cost of Healthcare: How to Control Physicians, Part II

In the US, the incentives are aligned to test more, treat more, and charge more. It's no surprise that, on average, the US spends almost twice as much on its healthcare system than other developed countries. And it's no surprise that our doctors are among the highest paid in the world.

The High Cost of Healthcare: How to Control Physicians, Part I

When we're talking about exorbitant medical fees, we're talking mostly about doctors' fees. Physicians make way more in the US than other developed countries - about twice as much. What do other countries do to contain physician fees? Lots of things, including...

Inequality of Income = Inequality of Opportunity? Part III

Since developing human capital requires financial resources and the returns to skills and education are higher than ever, the children of low-income families are at a disadvantage. But it doesn't have to be so. We just have to make sure the building blocks of human capital are there for all income levels.

Who Are The One Percent?

Who are the one percent? Technically, households with an adjusted gross income of at least $465,626. But who are those people? Many work in occupations that pay so well they have plenty of money available to get richer still through profitable investments. Many work in the following occupations...

How Much Can the 1% Pay?

The point of raising tax rates is to raise tax revenue.  However, raise the rate too high and tax payers will change their behavior to lower their tax bill. So is there a sweet spot for taxing the top earners in this country, where we can get the most revenue for our rate? Here's what the IMF has to say...

Inequality of Income = Inequality of Opportunity? Part II

In developed countries, inequality of income is driven largely by a wage disparity between the highly skilled and the less skilled.  Social mobility is stymied by lack of skills.  Why don't some people acquire the skills they need to move up the economic ladder? Why are some people stuck?