Sizing up the world economy & presidential politics

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Ed Conard sizes up the global economy and discusses presidential politics on Fox Business News’ Risk and Reward with Deirdre Bolton. Part I Part II

Krugman Steps Closer Toward Conceding Case Against Income Inequality Is Mistaken

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Earlier this week Paul Krugman took another step closer to conceding that the case against income inequality is mistaken. He said, “I’m actually a skeptic on the inequality-is-bad-for-performance proposition. … [I’m] worried that the evidence for some popular stories is weaker than I’d like.” Krugman laid some of the groundwork for his growing concession in [...]

No Role for Fed in Income Distribution

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NEW YORK TIMES by Ed Conard | October 27, 2014 The Federal Reserve has neither the mandate to redistribute wealth nor the tools to do it effectively. Should it try, it will likely fail. Were it to succeed, it would likely lower middle- and working-class incomes. Either way, it would violate one of America’s founding [...]

Pitfalls for hedge-funds in venture capital

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Ed discusses with Deirdre Bolton on Fox Business News. . . Part I Watch the latest video at video.foxbusiness.com Part II Watch the latest video at video.foxbusiness.com

Mohamed El-Erian joins Elise Gould to continue yesterday’s IQ2 debate: Does income inequality impair upward mobility?

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Ed defeats the IQ2 Motion: “Income Inequality Impairs the American Dream of Upward Mobility.”

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  Despite a highly partisan crowd of voters, Ed defeated the IQ2 Motion: “Income Inequality Impairs the American Dream of Upward Mobility.” Thirty percent of the voters moved to Ed’s side of the motion—one of the largest swings in the history of IQ2. Opening Statement: If income inequality truly impaired mobility, there would be telltale signs: Growing [...]

Krugman Ignores Buyers Surplus and the Motivational Value of Status

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In today’s “The Showoff Society” Paul Krugman continues to blame the drive for status among America’s most successful workers for abundant waste that yielded stagnant wage growth. Yesterday, he failed to recognize the drive for status fuels investment, risk-taking and innovation that helped spur U.S. job growth to twice the rate of Europe and three [...]

Does Rat Race Waste Resources? Krugman and I disagree

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Paul Krugman demonstrates a laughable misunderstanding of economics in his blog post “Having It and Flaunting It” yesterday. He mistakenly claims “status competition…is a zero-sum game … where a lot of our economic growth has simply been wasted, doing nothing but accelerating the pace of the upper-income rat race.” The drive for status and the [...]

Tax Inversion Primer w/ Simon Constable on WSJ Live

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Brookings Study Indicates Education and Parents’ Marital Status Have Large Impact on Mobility

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Brookings recently published a they-owe-the-public-better report on income inequality. One of the report’s headline conclusions shows, without any qualification, that growing up African American and poor (bottom quintile of earnings) is worse, from an expected earnings perspective, than growing up white and poor. See the chart below.     While that may be true, a [...]

Data Show Pay Increased for Middle Class Workers Since 2000

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An op-ed by David Cay Johnson points out that people earning between $100,000 and $400,000 per year captured “an astonishing” 75 percent of all (real) pay increases between 2000 and 2012. Twenty-two of those 75 percentage points stem from the fact that these workers earned 22 percent of the pay in 2000. So, all things [...]

Social Security Significantly Impacts Distribution of Wealth

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In a post  about a survey released this month showing Americans are much less concerned about income inequality than Europeans, despite similar perceptions about the distribution of income in their countries, Paul Krugman described Americans as “delusional.” He sees this delusion stemming from racism that results in a “unique suspicion of and hostility to social insurance [...]