My former grad school colleague, Steve Horwitz, makes the key argument that it is shoddy to compare changes over time for income quintiles without also measuring income mobility.
Sometimes, looking at the political discourse in this country, I wonder if we really understand the ratchet effect of increasing government programs and power over time: unlike in business, unlike in nature, unlike in, well, real life, failure is not punished, but at best ignored, at worst rewarded. Once a program is in place, it is almost never repealed, even when Republicans obtain political power because voters become dependent on it.
President Barack Obama travelled to Michigan this week and made his case for class war in defense of the welfare state.
I'm in the camp that believes Republicans have no choice but to agree to raise taxes on the top 2 percent of earners. The party has been successfully caricatured as the servant of the rich. This is unjust, yes, but justice is imperfect in this life.
If everyone in America had read Stephen Moore's new book, "Who's The Fairest of Them All?", Barack Obama would have lost the election in a landslide. The point here is not to say, "Where was Stephen Moore when we needed him?" A more apt question might be, "Where was the whole economics profession when we needed them?" Where were the media? For that matter, where were the Republicans?
Wednesday’s press conference marked the first occasion journalists have had to question the President directly – about anything – in eight months, and President Obama tipped his hat on his plans to confront the coming fiscal cliff with chastened House Republicans.
Have you noticed how the Obama campaign has stepped up its class warfare rhetoric as we draw closer to Election Day? President Barack Obama constantly resorts to this tactic because he's simply unable to defend his own record in office, as 23 million Americans are out of work or underemployed and the economy remains in distress.
President Obama started his Democratic Convention nomination acceptance speech with one overriding truth: “But when all is said and done – when you pick up that ballot to vote – you will face the clearest choice of any time in a generation. It will be a choice between two different paths for America. A choice between two fundamentally different visions for the future.”
One of the worst things that could be said about any of us is that greatness passed before us, and we failed to recognize it.
When reality bites, you can either try to change reality, or create your own.
When my wife was a liberal, she complained that libertarian reasoning is coldhearted. Since markets produce winners and losers -- and many losers did nothing wrong -- market competition is cruel. It must seem so.