Why inequality is less of a problem than you think

Some people believe that economic inequality is literally the biggest problem we face. I will try to explain why such concerns are overblown. If you missed it, last week’s post discussed how much inequality we have in the US. Warped thinking Fixating on income inequality can warp one’s thinking. Strong words, but true. Income inequality is … Continue reading Why inequality is less of a problem than you think

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Illustrating the power of growth

I have mentioned a couple times that economic growth is very important. But it’s easy to hear a message like that and think, “yeah, yeah, growth is important, got it,” without it truly registering. This is a crucial concept for achieving prosperity, so let me try to make it more tangible. Without the solid growth … Continue reading Illustrating the power of growth

Has unemployment dropped enough since the Great Recession?

US unemployment shot up sharply during the Great Recession of 2008-2009. Since then, it has dropped back to more normal levels. Is unemployment now low enough? Let’s look at some facts. Multiple unemployment metrics The unemployment rate is defined as the percentage of the overall labor force that is jobless. Simple enough, right? Not really. … Continue reading Has unemployment dropped enough since the Great Recession?

Is 3% Growth Possible?

The growth rate of the US economy has been in the news recently, for a couple reasons. First, economic growth in recent years has been lower than the historical average of roughly 3%. This has led some people to predict low growth as the new normal. Second, the budget released last week by the Trump […]