Macroeconomics

The Weekly Standard Reviews The Upside of Inequality

The Weekly Standard Reviews The Upside of Inequality

Michael M. Rosen The Weekly Standard November 21, 2016 As impassioned calls to curb income inequality, including through a growing movement to establish a “guaranteed basic income," have increasingly dominated the political conversation here and ... [Read More]

AEI Debate on “The Upside of Inequality”

I summarize my Top 10 NYT bestselling book, The Upside of Inequality: How Good Intentions Undermine the Middle Class for the American Enterprise Institute with Steven Roberts.  The book argues that today's knowledge-based economy is constrained by ... [Read More]

A Missed Opportunity for Serious Debate

AEIdeas by Edward Conard September 22, 2016 Richard Epstein, a libertarian law professor, reviewed my new book, “The Upside of Inequality: How Good Intentions Undermine the Middle Class“, for the WSJ. Unfortunately, Epstein misses the central ... [Read More]

More Evidence of Synergistic Clustering

The author notes: "Still, the concentration of American corporate might is stark. Nearly 40 percent of all public companies are in just four states: California, Massachusetts, New York and Texas. Three of them — California, New York and Texas — ... [Read More]

New York Times

A Proposal For Accelerating Middle Class Incomes

New York Times by Edward Conard September 19, 2016 When manufacturing jobs are outsourced, economists believe that opportunistic entrepreneurs will race to employ displaced workers and competition will raise their productivity and wages. But ... [Read More]

Hard Truths About Easy Money From Ned Phelps

In his WSJ op-ed last Friday, Noble Prize winner Ned Phelps reminds us:  “An even worse possibility [than inflation] arises from [loose monetary policy because of] the peculiar structure of the U.S. economy. It is highly integrated with financial ... [Read More]

Equity Risk Premium Remains High

My new book, The Upside of Inequality: How Good Intentions Undermine the Middle Class, argues that the economy’s capacity and willingness to take risk now binds growth. Since the financial crisis, the equity risk premium—often measured as: [1/PE ... [Read More]

A Theory for Slow Productivity Growth

Jim Pethokoukis provides a convenient summary of the various theories for why productivity growth has slowed. His list, however, doesn’t contain my theory.  In my book The Upside of Inequality: How Good Intentions Undermine the Middle Class, I argue ... [Read More]

Can Trump Gain Support of Top Republican Economists?

The WSJ surveyed all 45 of the former members of the White House Counsel of Economic Advisors—23 who served under a Republican President and 22 who served under a Democrat—and asked each whether they supported their respective party’s candidate. None ... [Read More]

Yale Economist Shiller Wrong About Zero Sum Economy

In his Sunday New York Times op-ed " Today’s Inequality Could Easily Become Tomorrow’s Catastrophe,” Yale economist Robert Shiller paints a dire picture of the economy as a zero-sum game where the gains of the rich come at the expense of the poor. He ... [Read More]

Low-Wage Workers are High-Cost Workers

If low-wage workers were low-cost workers, they wouldn’t be the last workers hired and the first ones fired—quite the opposite. Eric Morath and Julie Jargon of The WSJ report that the pay of the lowest-paid workers is finally beginning to rise faster ... [Read More]

The Cure for Wage Stagnation

In their Wall Street Journal op-ed, “The Cure for Wage Stagnation,” The American Enterprise Institute’s Kevin Hassett and Aparna Mathur present a plethora of evidence that lower corporate tax rates raise wages. I make a similar argument in my book, ... [Read More]

IMF Study Finds Deep Flaws in Key Piketty Hypothesis

A new IMF study, Testing Piketty’s Hypothesis on the Drivers of Income Inequality: Evidence from Panel VARs with Heterogeneous Dynamics, by Carlos Góes finds flaws in Thomas Piketty’s famous R > G hypothesis that returns to capital exceeding the ... [Read More]

Political polarization

The Goose that Laid the Golden Egg Isn’t Blue

In Sunday’s NYT, Yale’s Jacob Hacker and Berkeley’s Paul Pierson make a not-very-convincing argument that differences in the prosperity of Red and Blue state show that liberal Blue state policies produce more prosperity than conservative Red state ... [Read More]

Dollar Shave Club

Dollar Shave Club Wins the All-or-Nothing Lottery

The New York Times’ Steven Davidoff Solomon makes the same point about the success of Dollar Shave Club that I make in the first chapter of my upcoming book The Upside of Inequality: How Good Intentions Undermine the Middle Class. Today, ... [Read More]

Does the Threat of Inflation Stimulate Growth?

Tyler Cowen wrote a thoughtful piece expressing skepticism about the economy’s responsiveness to inflation and how some economists are now just assuming, with little evidence, that growth would be highly responsive to a helicopter money drop. In ... [Read More]

Effect of Investment on Productivy_Graph

Constraints to Growth

In a recent blog post, Michael Pettis‎ notes that while more invested capital per worker increases productivity in developing economies, economies have varying abilities to invest capital effectively. He labels this ability:‎ “social capital ... [Read More]

Wage Growth Stronger Than It Appears

Wage growth is 3.5 to 4% per year—on par with prerecession wage growth—according to the San Fran Fed. Median wage growth is pushed down when baby boomers with higher-than-median wages retire and workers with lower-than-median wages are hired. Wage ... [Read More]

Evolution of the U.S. economy since 1980. Source: The Economist

Evolution of the U.S. Economy Since 1980

A fascinating interactive graph worth bookmarking showing the evolution of the U.S. economy relative to the rest of the world since 1980. For example, the U.S. accounts for 70% of the world’s venture capital.     Find The ... [Read More]

Edward Conard Debate Highlights

Since the publication of his New York Times top-ten bestselling book, Unintended Consequences: Why Everything You’ve Been Told About the Economy Is Wrong (2012), Edward Conard has made over 100 television appearances in which he has debated leading ... [Read More]

Is Inequality Killing the American Dream?

Ed Conard discusses income inequality and how risk-taking and innovation drive the economy with Michelle Fleury on the BBC's "Talking Business.” Is Inequality Killing the American Dream? (Part 1) Is Inequality Killing the American ... [Read More]

Does the Pursuit of Status Drive Growth?

After Scott Sumner surveyed, with aghast, the uselessness of the leather-bound backgammon sets and other luxury goods on the FT’s HowtoSpendit website, he couldn’t help but post an argument for progressive consumption taxes. Sadly, his argument ... [Read More]

How to Fix America

Which Tools Should Washington Use? Unleash the Private Sector By Edward Conard | May 13, 2013 In "Can America Be Fixed?" (January/February 2013), Fareed Zakaria argues that American democracy has grown increasingly dysfunctional since the 1970s ... [Read More]

How America Can Lead the Global Economy

What I learned at Bain Capital working with Mitt Romney: outsourcing is good and America's future isn't manufacturing, it's ideas. Foreign Policy Magazine By Edward Conard | June 7, 2012 The United States must integrate its economy more fully ... [Read More]

Edward Conard on “Big Think”

Ed Conard: The Man Behind the 'Most Hated Book in America' Jonathan Fowler and Elizabeth Rodd | May 21, 2012 Due to his argument that income inequalty is a sign that the economy is working, The New York Times called former Bain Capital Managing ... [Read More]

MSNBC discusses Edward Conard May 5, 2012

MSNBC's "NOW with Alex Wagner" discusses Ed Conard's new book, Unintended Consequences which is featured on the cover of the New York Times Sunday Magazine.   http://www.youtube.com/watch?v=EdexE3HIoRk ... [Read More]

Please Don’t Soak the Rich

A successful economy requires outsize rewards for the able (and lucky) few who overcome very long odds to produce valuable innovations that others are willing to pay for. By Brian M. Carney In the wake of the 2008 financial panic, a narrative has ... [Read More]

Ed Conard on Fareed Zakaria

Ed Conard discusses how innovation and risk taking drive economic growth and benefit the middle class with Fareed Zakaria on CNN's "Global Public Square."   ... [Read More]