Don’t Trust Mainstream Economics

Here’s why:

It was almost exactly 20 years that statistics prepared by Paul Krugman about the extent of rising income inequality began to show up in the New York Times on page 1. Back then we–or at least I–thought that this would quickly reverse itself: I remember one dinner at which Claudia Goldin challenged . . . → Read More: Don’t Trust Mainstream Economics

Poverty, Income Inequality and Economic Development

Financial Times reports (link) on the new measure of poverty proposed by economists from Oxford University. The authors suggested the modification of current measure of poverty which, defined by the World Bank in annually published World Development Report, is currently set at the threshold of $1.25 per day or less. The new measure proposed . . . → Read More: Poverty, Income Inequality and Economic Development

EU vs. USA

I published a brief analysis (link) for the European Enterprise Institute, discussing a pattern of a growing income differential between the EU and America. The financial crisis diminished European growth rates and further widened the economic growth between the two continents.

Given a weak economic outlook for EU countries, the gap between European Union . . . → Read More: EU vs. USA

Income Inequality in the United States

Gary Becker (link) and Richard Posner (link) opened an intense debate on the issue of a growing US income inequality since 1980s onwards.

Inequality at Birth

Emmanuel Saez’s work on income inequality has been getting a lot of attention recently, for good reason. He has shown the extent to which inequality has grown rapidly in recent years. The benefit of economic growth this decade has gone almost exclusively to the extremely rich. The top 1% of . . . → Read More: Inequality at Birth

Buyers and Buy-Nots: The New Economics of Poverty and Affluence

Poverty and affluence may be relative concepts, but they are absolute experiences. A striking and dangerous feature of the recent global economic downturn is the ways in which it has blurred, if not reversed, the relativity and absoluteness of these two historically imminent psychosocial and . . . → Read More: Buyers and Buy-Nots: The New Economics of Poverty and Affluence