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 [...]

Americans Much Less Concerned about Inequality than Europeans

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A survey released this month by the Cologne Institute for Economic Research finds Americans are much less concerned about income inequality than Europeans. Despite similar perceptions about the distribution of income as the Germans and French, only 30 percent of Americans believe “differences in income in [their country] are too large” versus 50 percent of [...]

America Spends 25 Percent More per Capita on Social Welfare than Any Other County

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Despite popular misconceptions, Organisation for Economic Cooperation and Development (OECD) data confirms America spends more on social welfare than any other country—$13,500 per capita in 2009. This is nearly 25 percent more per capita than the second largest spender, France, and 35 percent more than Germany, Sweden, and other high-spending Scandinavian countries. Several factors obscure [...]

Studies Debunk Evidence that Higher Minimum Wages Don’t Hurt Low-skilled Employment

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An op-ed in today’s WSJ debunks shoddy evidence used by President Obama to claim that raising minimum wages increases growth. If raising wages truly stimulated demand, then larger increases should produce more growth. The research found the opposite: Of “the 13 states that raised their minimum wage in January [the states used as evidence by [...]

Does Economics 101 Apply to Immigration?

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Robert VerBruggen, a writer for RealClearPolicy, has written a pithy summary of Harvard labor economist’s, George Borjas’, recently published tough-minded book, Immigration Economics. VerBruggen writes: “[Borjas] lays out evidence that [immigration] undermines the employment prospects of the Americans who need decent jobs the most. … High-school dropouts — about 10 percent of the native U.S. [...]

New IMF Study Casts Doubts on the Value of Increased Infrastructure Spending

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A study published recently by the International Monetary Fund, “Public Investment as an Engine of Growth,” examines the impact of accelerated infrastructure investment on growth and productivity in “126 lower- and middle-income countries.” It finds “no robust evidence that the investment booms exerted a long-term positive impact on the level of GDP.” It does find [...]

With Deirdre Bolton on Fox Business, Ed Conard takes a look at investment opportunities in Africa

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Is private equity a viable investment option for Africa?

Ed Conard analyzes trends affecting private equity with Deirdre Bolton on Fox Business

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How has regulation impacted private equity investments and the state of the bond market?

Fed Data Shows Less Lending, Not More Saving, Factor in Recession

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In their book, House of Debt, Princeton economist Atif Mian and University of Chicago economist Amir Sufi claim reduced consumption by subprime homeowners occurred when home prices fell caused the Great Recession. Larry Summers thought the book was “likely to be the most important economics book of 2014.” Paul Krugman cited it as evidence of [...]

Ed Conard discusses why stifling tax inversion takes the pressure off of corporate tax reform with Maria Bartiromo on Opening Bell on Fox Business

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Former Bain Capital managing director Ed Conard on companies moving business overseas.