Category: Economics

  • On helping the poor while operating within capitalism

    These two tweet threads about working at Starbucks https://twitter.com/mangiotto/status/1350629396248367104?s=20 and McDonald's https://twitter.com/Nicole_Lee_Sch/status/1350468865810165760?s=20 remind of Jesus' story, the Parable of the Workers in the Vineyard from AD 30 in Matthew 20:1-16.

    "Make sure the undeserving don't get too much!" is not Jesus' way.

    I realize managing employees, minimum wage, food theft by employees, distribution of extra food, universal health care, and incentives are complex issues. But it is useful to approach them from the standpoint of a hard-working, food service worker.

    When you sell something or run a business, don't wring every last dollar of profit that you can, but rather leave some for the poor to get a deal!
    https://twitter.com/AndyRowell/status/1304441544364105730?s=20,

    YIMBY Let the poor be able to find a place to live in your neighborhood.

    I don't know why everyone is talking about minimum wage today but here's another tweet coming to my timeline.

    Being a host at Macaroni Grill was mind-numbing and made my feet hurt to stand for hours on the stone floor. Being a golf caddy at a country club was demeaning and humiliating. The only good was the money. (I preferred mowing lawns and painting houses where we had more autonomy).

    On the other side, I have been thinking about Cathie Wood who has been the most genius investor the last five years: innovative, collaborative, transparent, ethical. Her video from Friday:

    But she wanted Democrats to lose because of fear high taxes and regulations will drive companies to other countries. She believes in the market, companies, capitalism, and competition to bring positive change. I think her ideas can also be heard while still caring for workers.

    Another professor:

    https://twitter.com/AmyEricaSmith/status/1350884801327341569?s=19

    In my reading, Martin Luther King Jr., in his later years, from 1964 to 1968, more strongly advocated for economic justice for the poor than for racial justice. But in arguing for the former, he was also addressing the latter.
    https://twitter.com/AndyRowell/status/1348491861577461760?s=19,
    and

    Martin Luther King Jr.'s daughter today:

    If you wonder whether racism and economic philosophy are related, just remember slavery. Unrestrained capitalism exploits, abuses, enslaves the worker and reaps profit and riches.

    But capitalism's hard work and innovation can be good, if there is care and justice for the poor.

    One more argument for conservatives made by @mattyglesias is if you want America to thrive as a country (against China), you want lots of babies to increase the population. And people won't have them if economic well-being is super stressful when you're in your 20's and 30's.

    More viral tweets on minimum wage as it seems to be one of the hot topics people are talking about today:
    https://twitter.com/YasminYonis/status/1350562925728116737
    and

    https://twitter.com/conor_tripler/status/1350529321492856832

    And another viral tweet thread on minimum wage.
    https://twitter.com/JoshRaby/status/1350582459906351104
    What he is saying here is that it is doable for his restaurant if all the businesses do it. (And covid has been terrible for restaurants but that is another issue).

    Still pondering economic conservatives fear of taxes, I will also say that I have been skeptical that Republican politicians know what is best for the economy since 2013.
    https://twitter.com/AndyRowell/status/294821935504838656?s=19
    And indeed the stock market tends to do better under Democratic presidents.

    Originally tweeted by Andy Rowell (@AndyRowell) on January 17, 2021.

  • Economic statistics on poverty and income inequality and gender gap

     

     

     
     

     
    Justin Wolfers
     
    @JustinWolfers

     
    My students find it revealing to learn the income distribution: Last year, 10% of American households got by with income of <$14,600 20% got <$25,600 30% got <$37,000 40% got <$50,000 50% got <$63,200 60% got <$79,500 70% got <$100k 80% got <$130k 90% got <$185k 95% got <$249k
     
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    Justin Wolfers
     
    @JustinWolfers

     
    But childhood poverty remains a serious problem. In 2018, 16.2% of kids lived in a household that was in poverty. That compares to 10.7% for adults aged 18-64, and 9.7% for the elderly (thank you, social security!)
     
     

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    Justin Wolfers
     
    @JustinWolfers

     
    Alright, let's return to poverty. Don't forget the absolute magnitude: Around 1 in 8 Americans lives below the (meager) poverty line. Compared with past years, the poverty rate is currently relatively low — though not surprisingly low given the current unemployment rate.
     
     

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    Justin Wolfers
     
    @JustinWolfers

     
    The Census Bureau has done some nifty work, allowing us to better compare household income over time. And it tells a pretty darn depressing story: Median household income today is right where it was in 1999. Two decades with no progress for the middle class.
     
     

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    Justin Wolfers
     
    @JustinWolfers

     
    The official poverty rate is down again this year — by a solid 0.5 percentage points. It's a robust reminder that the most effective anti-poverty program we have is a robust macroeconomy with low unemployment.
     
     

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    Justin Wolfers
     
    @JustinWolfers

     
    Median household income (adjusted for inflation) is up only a tick, suggesting that the ongoing economic expansion still isn't delivering much for the middle class. Over the longer run, the failure of median household income to rise over the past two decades is disappointing.
     
     

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    Heather Long
     
    @byHeatherLong

     
    Just In: US official poverty rate falls to 11.8%, the lowest since 2001. #Census
     
     

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    Heather Long
     
    @byHeatherLong

     
    Not good: Income inequality is at an all-time high in the US (at least since Census started measure income inequality in the late 1960s). #Census
     
     

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  • How to address income inequality is a wedge issue

    Democrats and Republicans certainly respond differently to questions regarding the income gap. 

    Republicans are wary of governmental overreach which discourages personal initiative. 

    Democrats are concerned about the poor.

    Fascinating to see how differently they response to the questions. 

     

    4% of Republicans say income inequality is the most important economic issue. http://www.foxnews.com/politics/interactive/2015/11/04/fox-poll-gop-nomination-race-coming-into-focus/ … http://53eig.ht/1Y3TVzv 

    View summary

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    70% of Republicans: Government should not pursue policies to reduce the income gap between wealthy and less wealthy. http://www.quinnipiac.edu/news-and-events/quinnipiac-university-poll/iowa/release-detail?ReleaseID=2260 …

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    91% of Democrats: Government should pursue policies to reduce the income gap between wealthy and less wealthy. http://www.quinnipiac.edu/news-and-events/quinnipiac-university-poll/iowa/release-detail?ReleaseID=2260 …

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