FRED data shows that real per-capita income in the US has doubled since 1975 even despite the financial crisis of 2008. Unfortunately, this income growth mainly went to the top 10% richest Americans. Median family income was stagnant from the…
Blog Archives
Elites are more important than everyone else because much of our wellbeing depends on them.
There is vast difference between the lives of ordinary people north of the Rio Grande river versus the people to the south. There are even greater differences between the lives of people across other arbitrary political borders like between North…
Marginal value is a misnomer. Market prices reveal the median value.
Ever since the Marginal Revolution of the late 19th century, economics has been defined by marginal benefit and marginal cost. That is what determines the most famous picture in economics, the supply and demand graph. The demand curve is really the marginal benefit…
National Debt is NOT like Personal Debt
Note: There is a newer version of this post. Krugman explains that government debt can never be repaid when we owe it to ourselves. Deficit-worriers portray a future in which we’re impoverished by the need to pay back money we’ve…
Posted in Macro, Public Finance
Interest Burden Is More Important Than Total Debt
Who has a bigger debt? Total Debt Outstanding Interest Rate Monthly Payments Barry $100k 2% $370 Ronny $40k 11% $381 Both Barry and Ronny have the same incomes and both expect to pay off their debt in 30 years at…
Posted in Macro, Public Finance
One Unconventional Monetary Policy That The Conventional Wisdom Ignores
Let’s play word association. If I say, “unconventional monetary policy,” what is the first thing that comes to mind? If you are like most pundits and economists, you probably thought about phrases like quantitative easing, operation twist, NGDP targeting, large-scale…
The Fed Finally Adds Median Income To Its Data
I have given formal presentations about medianism in 4 different countries in 2014: the USA, Lebanon, Mexico, and now Canada. Two weeks ago I presented at the Mennonite Economic Development Associates (MEDA) Convention in Winnipeg Canada. A lot of the…
Medianism 