McCloskey’s suggestion for changing the term “capitalism” into “innovism” might be a more practical way of arguing for free markets. Capitalism, as it’s tossed around in conversation, ends up getting misconstrued by both sides of the argument, because it lends itself to assume that societies have only become rich through the accumulation of capital. However, this is simply not true. It is ideas and the ability for entrepreneurs to assume the risks of employing the factors of production, by means of prices set in a market, to produce new (and perceived better) products or services to then turn around and sell them at uncertain prices in the market. The z, not the k, in our Solow model, if you will. This is “trade-tested betterment” as also proposed by McCloskey. Continue reading “Using Innovism Instead of Capitalism”
The debate on income inequality continues to roar, despite current political scandal distractions. But, we’ll get nowhere on the issue if we aren’t all on the same page as to what we’re debating. Continue reading “When Debating Income Inequality, Get On the Same Page”
A new report testing American’s financial literacy proves how badly we’re in need of education on the subject. Continue reading “Stop Treating Personal Finance As An Elective”
We continue to be on guard for industries in which workers are likely to be replaced by machines and automation. Food service and accommodations, transportation, and retail are all expected to be taken over by automated processes. Employment numbers in the manufacturing sector continue to dwindle as machines take on the bulk of the work. Continue reading “Barbers: Automation vs Occupational Licensing”
In his new book, The Complacent Class, Tyler Cowen re-emphasizes the role of economists in perpetuating pessimism. By connecting a slew of dismal trends backed by hard (and shaky) data, he offers a rationale behind the low levels of productivity, decreased economic mobility and low levels of economic growth. He categorizes the factors that make us seemingly FKD.
Continue reading “Dilemma: The Segregated Match”
Though it doesn’t paint the whole picture, financial capital represents a whole lot of the influence behind economic mobility. The last, and most obvious, installment in our analysis of economic capital’s effect on realizing the American Dream explores financial capital.
While Republicans in Congress duke it out over how to repeal and replace Obamacare, we can take matters into our own hands by making use of a hidden gem: the health savings account. Continue reading “Economic Prescription: The Health Savings Account”
The student loan debt crisis is not exclusive to Gen Y. A new report claims that of the student loans taken out by folks over the age of 60, 40 percent of them are in default. This will turn out to have some serious implications for not only their well-being but for Gen Y’s ability to become economically mobile in the future. Continue reading “Our Parents And Grandparents Are Sharing The Struggle With Student Loans”
In light of the most romantic holiday of the year, it’s time to flop it on the table and talk about the economic implications of the D.
In continuing our analysis of what goes into economic mobility, we run into cultural capital: the capital often left out of the economics because it’s assumed to be out of our control.