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August 7, 2012

Latest Posts from Economist's View

Latest Posts from Economist's View

Posted: 09 Jun 2012 12:06 AM PDT
Posted: 08 Jun 2012 02:13 PM PDT
I've highlighted this research in the past, as well as other research drawing the same conclusions, but I doubt that the message has been fully absorbed, i.e. many people still believe that consumption inequality has not increased as much as income inequality:
Inequality Has Increased in Income and Consumption, Economists Argue, by Jie Jenny Zou, WSJ: Inequality in U.S. incomes has been matched by disparities in consumption, according to recent economic research.
While economists agree that income inequality in the U.S. has steadily increased, there has been debate over whether that has also translated to an increase in consumption inequality. Some economists have long suggested that consumption, rather than income, is most indicative of how people fare in an economy. ...
Researchers at University of Chicago, University College London and Stanford University in a paper titled "The Evolution of Income, Consumption, and Leisure Inequality in the U.S. 1980-2010" suggest that not only has consumption inequality increased, but that it has also increased alongside income inequality and that inaccurate consumption data has been at the core of the issue. ...
Posted: 08 Jun 2012 11:03 AM PDT
Chris Dillow gets annoyed by the same thing that annoys me, non-economists who don't understand what economists do telling us what's wrong with economics:
"Economics" & rationality, by Chris Dillow: One of the great irritations of our age is the tendency for non-economists to tell us what's wrong with economics. We've seen two egregious examples of this recently...
As I tweeted yesterday, I found one of the articles he talks about, the one by Suzanne Moore, amusing. For example, she calls on the central bank to step up with additional fiscal stimulus measures, that sort of thing. At the very least, critics ought to grasp the basics.
Don't get me wrong. There is plenty to criticize in macroeconomics, and micro too for that matter. But this sort of attack does not help to correct the problems that plague existing models.

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