Edward Conard

Top Ten New York Times Bestselling Author

  • “…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
  • “Unintended Consequences provides a provocative interpretation of the causes of the global financial crisis and the policies needed to return to rapid growth. Whether you agree or not, this analysis is well worth reading.” - Nouriel Roubini, New York University; Chairman, Roubini Global Economics
  • “…serious thinking for serious thinkers. …a thought-provoking blueprint for growing middle- and working-class incomes.” - Mitt Romney, former Governor of Massachusetts
  • “Unintended Consequences represents the most cogent and persuasive analysis of the Financial Crisis to date.” - Andrei Shleifer, 1999 John Bates Clark Medal Winner
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
  • “…challenges misconceptions that distort our economic debates.” - Arthur Brooks, President of the American Enterprise Institute
  • “Unintended Consequences is far smarter and more thought-provoking than most economics written for the general public” - Greg Mankiw, Harvard University, Former Chairman of the Council of Economic Advisors
  • “Unintended Consequences is full of substance, it is one of the must-read books of the year, and once I finish it I will be giving it a second read through right away.” - Tyler Cowen, Professor, George Mason University
  • “There are an amazing number of good ideas and interesting points made in Unintended Consequences. The thinking underlying it, and the obvious depth of understanding of the author, are very impressive.” - Steven Levitt, coauthor of Freakonomics; 2004 John Bates Clark Medal
  • “Unintended Consequences offers deep and well-argued analyses on almost every issue.” - The New York Times
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
Upside of Inequality Oxford Unintended Consequences
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Monday, December 24, 2018

Beware the Next Step on Criminal-Justice Reform

AI Summary. 23% of felons convicted of violent crimes receive no incarceration, nearly 80% of state prison inmates are released before serving their full terms, and the median time served for violent crimes was 2.4 years. The nationwide incarceration rate stands at its lowest level since 1996, and further reforms risk weakening deterrents and increasing crime.

Barry Latzer Wall Street Journal
Date Posted:
December 24, 2018
Is Database:
Database

@BarryLatzer US incarceration rate lowest since 1996, despite 23% of violent felons receiving no incarceration & 80% of state prison inmates released early. Murder rate down 45% since 1991.

@BarryLatzer US incarceration rate lowest since 1996, despite 23% of violent felons receiving no incarceration & 80% of...

Would further criminal-justice reform weaken deterrence and increase crime?

Core argument: In the U.S., 23% of felons convicted of violent crimes receive no incarceration, and nearly 80% of state prison inmates are released before serving their full terms.

The U.S. criminal justice system faces scrutiny as 23% of felons convicted of violent crimes receive no incarceration, and nearly 80% of state prison inmates are released before serving full terms. In 2016, the median time served for violent crimes was 2.4 years, with an average of 4.7 years, skewed by long sentences. Despite perceptions of overincarceration, the nationwide incarceration rate is at its lowest since 1996, reflecting declining crime rates. The murder rate in 2017 was 5.4 per 100,000, down 45% from 1991. As states cut criminal-justice expenditures post-recession, further reforms risk weakening deterrents and potentially increasing crime, echoing the late 1960s crime wave.

Takeaways by Macro Roundup® AI

  1. In the U.S., 23% of felons convicted of violent crimes receive no incarceration, and nearly 80% of state prison inmates are released before serving their full terms.
  2. Median time served for violent crimes was 2.4 years in 2016, with an average of 4.7 years skewed upward by long sentences.
  3. The nationwide incarceration rate stands at its lowest since 1996, and the 2017 murder rate of 5.4 per 100,000 is down 45% from 1991.

“….First, 23% of felons convicted of violent crimes are sentenced to no incarceration whatever. Second, nearly 80% of state prison inmates are released before serving their full terms. If we measure punishment by actual time served, the picture is not disturbing. Some might argue that America has an underpunishment problem. The U.S. Bureau of Justice Statistics reports that of inmates released in 2016 from state prisons in 44 states, the median murderer had served 13.4 years in prison. The median for those convicted of any violent crime—murder, manslaughter, rape, robbery or assault—was 2.4 years. The average time served is higher than the median—4.7 years—but the average is skewed upward by a small number of unusually long imprisonments. If we look at all state prisoners released in 2016 regardless of offense, the average stay was 2.6 years and the median was 1.3 years. Seventy-seven percent of state prisoners are freed after less than three years behind bars. While that doesn’t include time spent in jail before trial or while awaiting transfer to prison, the jail time is usually a matter of months and is credited toward the time served in prison….”

Barry Latzer, "Beware the Next Step on Criminal-Justice Reform,"Wall Street Journal, December 23, 2018, https://www.wsj.com/articles/beware-the-next-step-on-criminal-justice-reform-11545598957

Beware the Next Step on Criminal-Justice Reform

The First Step Act, which President Trump signed Friday, is a federal prisoner-leniency measure and a worthy reform. It grants a limited number of federal offenders rational and modest sentence reductions, incentives for rehabilitation, and some humane improvements while they serve their sentences. Yet it contains nothing radical to diminish the criminal-justice system or undermine public safety. The provisions for electronic monitoring of early-release prisoners are a welcome down-payment on the best hope for the future of criminal justice—technology.

But having passed the First Step Act, lawmakers should be cautious about the next step. Progressives believe that the U.S. overincarcerates and needs to cut back sharply on the number of people in jails and prisons. But the “mass incarceration” claim doesn’t withstand much scrutiny.

Even progressives must acknowledge that the overwhelming majority of prison inmates are guilty. Thus if it is true that they are overincarcerated, it must be because too many guilty criminals are locked up, because their punishments are excessive, or some combination of the two.

Since more than half of violent crimes go unreported and police solve only a small percentage of those that are (about 26% of reported robberies, for instance), it is difficult to argue that America incarcerates too many offenders. While perhaps an argument can be made for reducing low-level arrests (think possession of small amounts of marijuana), those offenders, when they are held at all, almost always go to jail, not prison, which is for serious and repeat offenders.

What about overpunishment? Are penalties so harsh that American prisons are filled with men and women who are languishing there for decades because of some youthful indiscretion? That is the image the disincarceration movement wants to conjure up. But it is false.

First, 23% of felons convicted of violent crimes are sentenced to no incarceration whatever. Second, nearly 80% of state prison inmates are released before serving their full terms. If we measure punishment by actual time served, the picture is not disturbing. Some might argue that America has an underpunishment problem.

The U.S. Bureau of Justice Statistics reports that of inmates released in 2016 from state prisons in 44 states, the median murderer had served 13.4 years in prison. The median for those convicted of any violent crime—murder, manslaughter, rape, robbery or assault—was 2.4 years. The average time served is higher than the median—4.7 years—but the average is skewed upward by a small number of unusually long imprisonments.

If we look at all state prisoners released in 2016 regardless of offense, the average stay was 2.6 years and the median was 1.3 years. Seventy-seven percent of state prisoners are freed after less than three years behind bars. While that doesn’t include time spent in jail before trial or while awaiting transfer to prison, the jail time is usually a matter of months and is credited toward the time served in prison.

If these punishments don’t seem excessive, and the overwhelming number of people imprisoned deserve their fate, then what will the “second step” entail? Additional policy changes to accelerate disincarceration appear to be unnecessary. In the past decade, according to Bureau of Justice Statistics figures, nationwide incarceration rates have steadily declined and now are at their lowest rate since 1996.

Undoubtedly the decline reflects falling crime rates. Despite upticks since 2015, the U.S. murder rate—the most accurately counted crime, since there are few unreported murders—has been modest, especially compared with the early 1990s. The 2017 rate (5.4 murders per 100,000 Americans) is down 45% from the 1991 rate (9.8). In addition, since the recession of 2007-09, at least 20 states have cut back on criminal-justice expenditures, most likely as a means of cost-saving.

The risk in the second step of criminal-justice reform is that it goes too far. The justice system, flawed though it is, provides incentives to desist from crime. The weaker it gets, the greater the risk of a significant crime increase. That happened in the late 1960s: When the crime tsunami began, the system caved in. Police arrested fewer offenders, and courts imposed fewer and lighter punishments. That contributed to the 20th century’s worst sustained violent-crime wave.

The saver in all this may be that the First Step Act affects only federal prisoners, and each state can judge for itself whether or not—and how much—the system should be softened as a second step.

  • Poverty/Crime

For U.S. Cities, Size Increasingly Matters

AI Summary. A Kansas City Federal Reserve study finds that initial population size has become a key determinant of employment and population growth, with most U.S. communities under 25,000 residents losing both population and jobs while nearly all metropolitan areas above 500,000 grew. The link between city size and growth has intensified.

Jordan Rappaport Wall Street Journal
Date Posted:
December 24, 2018
Is Database:
Database

A Kansas City Fed study highlights that initial population size has become a crucial factor in determining employment and population growth since 2000.

A Kansas City Fed study highlights that initial population size has become a crucial factor in determining employment and...

Does city size increasingly determine population and job growth?

Core argument: From 2000 to 2017, most U.S. communities with fewer than 25,000 residents lost both population and employment, while nearly all metropolitan areas above 500,000 residents grew in both, according to a Kansas City Fed study.

A Kansas City Fed study highlights that initial population size has become a crucial factor in determining employment and population growth since 2000. From 2000 to 2017, most U.S. communities with fewer than 25,000 residents experienced declines in both population and employment, whereas nearly all metropolitan areas with populations exceeding 500,000 saw growth. This shift underscores the increasing importance of city size in economic dynamics, as larger cities continue to attract more residents and jobs, reinforcing their economic dominance. The relationship between city size and growth has intensified post-2000, suggesting that larger urban centers are better positioned to capitalize on economic opportunities and demographic trends.

Takeaways by Macro Roundup® AI

  1. From 2000 to 2017, most U.S. communities with fewer than 25,000 residents lost both population and employment, while nearly all metropolitan areas above 500,000 residents grew in both, according to a Kansas City Fed study.
  2. A Kansas City Fed study finds that initial population size has become a crucial determinant of employment and population growth since 2000, with the relationship between city size and growth intensifying after that year.

WSJ reports on a new Kansas City Fed study, "... Initial population has become a more significant determinant of employment and population growth in recent years than it was in previous decades, a Analysis from the Federal Reserve Bank of Kansas City found. From 2000 to 2017, a majority of U.S. communities with fewer than 25,000 residents saw declining population and employment, while nearly all metropolitan areas with more than 500,000 residents saw their populations rise...“The relationship between size and growth became much more important after 2000,” author and senior economist Jordan Rappaport said....."

Paul Kiernan, "For U.S. Cities, Size Increasingly Matters,"Wall Street Journal,December 24, 2018, https://blogs.wsj.com/economics/2018/12/24/for-u-s-cities-size-increasingly-matters/

  • Urban vs Rural
  • Comparisons
    • Geography (Urban/Rural)
    • Historical
  • GDP
    • Growth
  • Productivity
    • Workforce Reorganization

Wednesday, December 26, 2018

Obamas Racial Preferences Made Schools Dangerous

AI Summary. Federal guidance letters threatened school districts with action if black suspension rates were not reduced, even under race-neutral policies, prompting schools to cut discipline to achieve racial balance. The article argues this increased disorder, truancy, and bullying while lowering math and reading proficiency, harming the minority students it aimed to help.

Jason Riley Wall Street Journal
Date Posted:
December 26, 2018
Is Database:
Database

The Obama administration’s guidance letters led schools to prioritize racial parity over safety, resulting in increased school violence & disorder, particularly in cities like Los Angeles & Chicago.

The Obama administration’s guidance letters led schools to prioritize racial parity over safety, resulting in...

Did pressuring schools to equalize suspension rates by race harm students?

Core argument: A federal report found that 25% of black students reported being bullied, the highest share among racial groups.

In 2014, the Obama administration issued guidance letters to school districts, threatening federal action if black suspension rates weren't reduced, even if policies were neutral. This led schools to discipline fewer students to achieve racial balance, prioritizing racial parity over safety. In Oklahoma City, suspensions were discouraged unless there was blood, while Los Angeles and Chicago saw increased disorder and decreased student safety. Philadelphia experienced higher truancy and lower academic achievement, and Wisconsin schools saw declines in math and reading proficiency. A federal report found 25% of black students reported being bullied, the highest among racial groups. These policies inadvertently harmed minority students by increasing school violence and disorder, undermining educational outcomes.

Takeaways by Macro Roundup® AI

  1. A federal report found that 25% of black students reported being bullied, the highest share among racial groups.
  2. The Obama administration's 2014 guidance letters threatened federal action against school districts whose black suspension rates were not reduced, even where discipline policies were racially neutral.
  3. Oklahoma City discouraged suspensions absent blood, Los Angeles and Chicago saw increased disorder and reduced student safety, Philadelphia saw higher truancy and lower achievement, and Wisconsin schools saw declines in math and reading proficiency.

"... In 2014 the Obama administration sent school districts “guidance” letters that essentially threatened federal action if black suspension rates weren’t reduced. The letter stated that even if a school’s suspension policy “is neutral on its face—meaning that the policy itself does not mention race—and is administrated in an evenhanded manner,” the district could still face a federal civil-rights investigation if the policy “has a disparate impact, i.e., a disproportionate and unjustified effect on students of a particular race.”..."

Jason Riley, "Obama’s Racial Preferences Made Schools Dangerous," Wall Street Journal, December 25, 2018, https://www.wsj.com/articles/obamas-racial-preferences-made-schools-dangerous-11545767080

Obama’s Racial Preferences Made Schools Dangerous

There are some interviews a journalist never forgets. I remember the time a father in Harlem explained to me why he had pulled his son out of the neighborhood public school and enrolled him in a nearby charter school.

The father was tall and thin. He kept both hands in his pockets as we stood talking, but he had a very expressive face. I thought he was going to tell me that the charter school had smaller classes or better graduation rates. Instead, he wanted to talk about something most parents take for granted when they send Johnny and Susie off to school each morning: physical safety.

He didn’t take it for granted. He told me the atmosphere at the old school had been chaotic, that bullying was rampant, and that his son, a sixth-grader at the time, had become terrified of the place. One day the boy was attacked by other students in the school lavatory, and the father got a call to pick him up from the hospital. It was the final straw. “I didn’t know anything about charters,” said the father. “I was just looking for an escape.” After the new school assured him his child would not have to worry each day about being assaulted by his classmates, he was sold.

I thought about that family last week when news broke that Education Secretary Betsy DeVos was revoking an Obama-era policy on school discipline. In 2014 the Obama administration sent school districts “guidance” letters that essentially threatened federal action if black suspension rates weren’t reduced. The letter stated that even if a school’s suspension policy “is neutral on its face—meaning that the policy itself does not mention race—and is administrated in an evenhanded manner,” the district could still face a federal civil-rights investigation if the policy “has a disparate impact, i.e., a disproportionate and unjustified effect on students of a particular race.”

Put another way, the administration was demanding racial parity in school discipline, regardless of who was being disruptive, which is as silly as demanding racial parity in police arrests, regardless of who’s committing crimes.

The result is that more schools have been disciplining fewer students in order to achieve racial balance in suspension rates and stay out of trouble with the federal government. Civil-rights lawsuits are embarrassing—to be accused of racial discrimination is often tantamount to being found guilty of it. They’re also expensive to fight, and the federal government has far more resources than any school district. The easier course for schools is to pretend that students from different racial and ethnic groups misbehave at similar rates. School safety becomes secondary.

In Oklahoma City, principals told teachers not to request a suspension “unless there was blood.” After school districts in Los Angeles and Chicago softened their policies to curb suspensions, teachers reported more disorder, and students reported feeling less safe. Following a similar move in Philadelphia, truancy increased and academic achievement fell. Schools in Wisconsin that followed the guidance also saw subsequent reductions in math and reading proficiency. Like other liberal advocates of school-discipline reform, Arne Duncan, who was serving as President Obama’s education secretary when the guidance was issued, insisted that blacks are suspended at higher rates than other groups only because school officials are racially biased. “It’s not caused by differences in children,” he said. “It is adult behavior that needs to change.”

Yet many of the schools where these uneven discipline rates persist have minority principals and no shortage of minority teachers and administrators. What would be their motive for singling out black and brown kids for suspensions and expulsions, unless those students’ behavior warrants it? And why shouldn’t we expect to find varying rates of misbehavior among racial and ethnic groups in school, when that is exactly what we find outside school?

The bigger problem with these antisuspension crusades is that they ultimately harm the groups they are supposed to help. After New York City made it more difficult to remove troublemakers from the classroom, schools with the highest percentages of minority students were more likely to experience an increase in fighting, gang activity and drug use. A federal report on school crime and safety released last year by the National Center for Education Statistics found that 25% of black students nationwide reported being bullied, the highest proportion of any racial or ethnic group.

Some kids go to school to learn, while others go to generate disorder. If we want to narrow racial gaps in academic achievement, policies ought to prioritize the needs of the former—and a school stripped of its ability to effectively discipline students will be hard-pressed to effectively teach them. Don’t believe me? I know a father in Harlem you should talk to.

  • Poverty/Crime
  • Workforce
    • Education
      • K-12

Married Men Outearn Single Men (and Women as a Whole)

AI Summary. An analysis by the Federal Reserve Bank of St. Louis, controlling for age among employed people with at least a high school diploma, finds married men earn substantially more than single men, single women, and married women, with minimal wage differences among those other groups. The data suggest higher-earning men are more likely to marry.

Federal Reserve Bank of St. Louis Staff Federal Reserve Bank of St. Louis
Date Posted:
December 26, 2018
Is Database:
Database

Married men significantly outearn single men and women as a whole, according to @FederalReserve analysis. The study found minimal wage differences btw single men and single women, but married men earn substantially more.

Do married men earn more than single men and women?

Core argument: An analysis by the Federal Reserve Bank of St. Louis, controlling for age among employed people with at least a high school diploma, finds married men substantially outearn single men and women as a whole.

Married men significantly outearn single men and women as a whole, according to an analysis by the Federal Reserve Bank of St. Louis. The study, which controlled for age and focused on employed individuals with at least a high school diploma, found minimal wage differences between single men and single women, as well as between single and married women. This challenges the notion that the gender wage gap is primarily due to women having children earlier and losing ground in human capital accumulation. However, married men earn substantially more than the other groups. The data suggest that higher-earning men may be more likely to marry, rather than marriage itself increasing wages. This insight into wage disparities highlights the complex interplay between marital status and earnings, with implications for understanding labor market dynamics and informing policy decisions.

Takeaways by Macro Roundup® AI

  1. An analysis by the Federal Reserve Bank of St. Louis, controlling for age among employed people with at least a high school diploma, finds married men substantially outearn single men and women as a whole.
  2. The St. Louis Fed analysis finds minimal wage differences between single men and single women, and between single and married women, challenging the view that the gender wage gap stems primarily from women having children earlier and losing ground in human capital accumulation.
  3. The St. Louis Fed data suggest higher-earning men may be more likely to marry, rather than marriage itself raising wages.

FRBSL finds gender pay gap is function of marriage status, even controlling for age

"...But when marital status is factored in, single men tend to earn roughly what single women and married women do, while married men far out earn the other three groups, according to a recent Economic Synopses essay. Research Officer and Economist Guillaume Vandenbroucke first broke down wages by men and women, focusing on employed people with at least a high school diploma.... Vandenbroucke’s first observation is that there was very little, if any, difference between single men and single women. Next was that single women and married women also earned similar wages. “This is surprising since married women may be more likely to have children than single women,” he noted. “Thus, this second point is not consistent with the view that the gender wage gap results from women having children earlier in life and losing ground in human capital accumulation relative to men.” Hisfinal observation was that married men earned significantly more than the other three categories. He cautioned that the data don’t imply that being married increases a man’s wage: “It might be that men with higher wages are more likely to marry; therefore, the average married man earns a higher wage than the average single man.”..."

Married Men Outearn Single Men (and Women as a Whole)," Federal Reserve Bank of St. Louis, December 25, 2018, https://www.stlouisfed.org/on-the-economy/2018/december/married-men-outearn-single-men

  • Other Comparison
  • Comparisons
    • Gender
    • Historical
  • Workforce
    • Family/Marriage
    • Wages/Income


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