Inequality: What We Earn vs. What We Consume

Is inequality better measured by what we earn or what we spend? The difference is surprising. [Credit: Politic.org]

Is inequality better measured by what we earn or what we spend? The difference is surprising. [Credit: Politic.org]

Is your standard of living better measured by what you earn or by what you buy?

The question may seem an odd one, but it is critical to understanding the problem of rising inequality. Continue reading

Student Loans: Punishing People Who Play By The Rules

President Obama believes that requiring student loans to be repaid is punishing good behavior.  [Credit: NPR]

President Obama believes that requiring student loans to be repaid is punishing good behavior. [Credit: NPR]

“If somebody plays by the rules, they shouldn’t be punished for it.” — President Obama

The President made this inarguable statement in the course of proclaiming a change in the law governing student loans.  Henceforth, millions of people who borrowed for college will have their monthly payments restructured and, in some cases, be entirely relieved of the obligation to repay their debt.

In the President’s mind, borrowing money is playing by the rules; paying it back is punishment. Continue reading

Welfare or Work: A Difficult Choice

The choice between welfare and work is not always an easy one, according to a new study by the Cato Institute.  (Credit: LA Times)

The choice between welfare and work is not always an easy one, according to a new study by the Cato Institute. (Credit: LA Times)

(NOTE: This post was updated on September 23 to incorporate the government’s newly-released poverty rate data.)

If forced to choose between a full-time job that paid $24.40 per hour and enrolling in a package of government benefits that paid a comparable amount, which would you choose? Continue reading