How Income Inequality Can Hurt the Economy
In a nutshell, that shows the problem of inequality in America: the rich are getting richer, the poor are getting poorer (but have government safety nets), and the middle class are screwed. Rising costs and income inequality It’s rising costs like health care that are eroding the middle c...
First, we shed new light on whether and how inequality in the distant past affects economic growth in the long run. Unlike earlier empirical studies, we use historical indicators of income inequality (Gini coefficient) across 88 countries, dating as far back as the 1700s and the 1800s, as ...
Mark Thoma is a macroeconomist and time-series econometrician at the University of Oregon. His research focuses on how monetary policy affects the economy, and he has worked on political business cycle models. Mark is currently a fellow at The Century Foundation, and he blogs daily at Economist...
This is a useful approach that gives considerable detail on how income shares have changed over time for different income groups in the economy. However, it's also useful to arrive at a single number that characterizes the degree of inequality, and for that the most common measure is theGini...
household budgets globally, forcing families to cut back on spending and even limit their ability to save and invest. This situation significantly affects many low and middle-income families both in developing and developed countries, which further exacerbates poverty levels and economic inequality. ...
How Job Training Influences the Economy A successful economy has a workforce capable of operating industries at a level where it holds acompetitive advantageover the economies of other countries. Nations may try incentivizing training throughtax breaks, providing facilities to train workers, or a varie...
An increase or decrease in taxes affects the economy and spending decisions of individuals in higher and lower income brackets.
“Equality is really something that touches every aspect of policy. As inequality has become one of the dominant problems in our society, we have to use that lens of how policy affects inequality,” says Stiglitz. “For instance, monetary policy, it used to be...
Gross domestic product (GDP) measures the total output of an entire economy by adding up total consumption, investment, government expenditure, and net exports.GDPis therefore considered a quality approximation of income for an entire economy in a given period. ...