Benjamin Studebaker

Yet Another Attempt to Make the World a Better Place by Writing Things

Tag: Household Income

Australia’s Poor Wage Growth is Destroying its Prime Ministers

Australia has swapped Prime Ministers again–this time the Liberal Party replaced Malcolm Turnbull with Scott Morrison. Morrison will be Australia’s sixth Prime Minister in the last then years. This level of turnover at the top is remarkable. The UK has only had three Prime Ministers during the same period. Canada has only had two. Why are Australian politics so volatile? I couldn’t find any explanation online which satisfied me, so I’m writing my own. I think it has to do with a combination of wages and the way Australia’s political parties choose their leaders.
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Even Top Liberal Pundits Still Don’t Understand the Division in the Democratic Party

Today a friend of mine sent me a piece by Franklin Foer in The Atlantic. In the piece Foer gives some thought to what ails the Democratic Party, and he comes to a constructive conclusion–the party needs to reach out to the white working class. But the way Foer gets there troubles me. Too many liberal commentators don’t quite understand the division within the Democratic Party, even the ones who are actively trying to understand that division. Let me show you what I mean.

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Bernie Sanders: What the Economists are Fighting About

Economists have gotten into a big fight with each other about the potential economic impacts of Bernie Sanders’ proposals. First Gerald Friedman came out with a new paper anticipating a tremendous improvement in economic performance under Sanders. Then four economists (Krueger, Goolsbee, Romer, and Tyson) affiliated with the Obama and Clinton administrations wrote a joint letter asserting that Friedman’s claims “cannot be supported by the economic evidence”. Paul Krugman subsequently took their side on his popular blog. Others have defended Friedman–Jamie Galbraith accuses the four of not having rigorously reviewed the paper, while Dean Baker claims that the New York Times is not giving Sanders’ side a platform and that there’s far more support among economists than we are being led to believe. In the popular press, this argument has rapidly devolved into a question of which authorities are more or less credible. I want to give you something better–a readable analysis of the actual arguments at stake here.

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Why American Families are Worse off Now Than They Were in 1997

When we evaluate whether or not the economy is performing well, we sometimes pay too much attention to GDP. Gross domestic product tells us about the total amount of exchange going on in an economy, but many of those exchanges only serve to enrich those at the top of the economic ladder. To get a better sense of how ordinary people are doing, we need to look at real (inflation-adjusted) median household income. Today I checked in on the American figures, and they are bleak:

The median American family is not only poorer than they were before the 2008 crisis–they’re poorer than they were during the Monica Lewinsky scandal. What on earth is going on?

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