Found 11 article(s) for author 'Wealth'

Racial wealth inequality: Social problems and solutions

Racial wealth inequality: Social problems and solutions. Alexandra Killewald, June 3, 2019, Video, “White college graduates have over seven times more wealth than black college graduates and nearly four times more wealth than Latino college graduates. White single parents have roughly two times more wealth than two-parent black and Latino households. Rather than education, family structure, or conspicuous consumption, scholars point to historic policies (e.g., Homestead Act, GI Bill, Social Security) that have excluded minorities from having similar wealth-building opportunities as white individuals. Furthermore, empirical evidence suggests that discrimination and structural racism are among contemporary drivers that prevent minority communities from obtaining equitable housing loans, adequate neighborhood resources (such as grocery stores and healthcare services), and access to jobs and education. A series of policy solutions including student loan forgiveness, universal basic income, federal job guarantee, baby bonds, and reparations have been presented as potential solutions.Link

 

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A ‘wealth tax’ presents a revenue estimation puzzle

A ‘wealth tax’ presents a revenue estimation puzzle. Lawrence Summers, April 4, 2019, Opinion,“Sen. Elizabeth Warren (D-Mass.) recently proposed a 2 percent “wealth tax” on those worth more than $50 million. Emmanuel Saez and Gabriel Zucman, economists at the University of California at Berkeley, have played a major role in developing and validating this proposal. They estimate that the tax would raise $187 billion in 2019 (Warren’s additional 1 percent “billionaire surcharge” brings their total revenue estimate to $212 billion). This represents a substantial sum and has been widely quoted in both academic and policy discussions of wealth taxation.Link

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Intergenerational Wealth Mobility and Racial Inequality

Intergenerational Wealth Mobility and Racial Inequality. Alexandra Killewald, 2019, Paper, “The black-white gap in household wealth is large and well documented. Here, we visualize how this racial wealth gap persists across generations. Animating the flow of individuals between the relative wealth position of parents and their adult children, we show that the disadvantage of black families is a consequence both of wealth inequality in prior generations and race differences in the transmission of wealth positions across generations: Black children both have less wealthy parents on average and are far more likely to be downwardly mobile in household wealth. By displaying intergenerational movements between parental and offspring wealth quintiles, we underline how intergenerational fluctuation coexists with the maintenance of a severely racialized wealth structure.Link

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Sugar and slaves: Wealth, poverty, and inequality in colonial Jamaica

Sugar and slaves: Wealth, poverty, and inequality in colonial Jamaica. Jeffrey Williamson, December 6, 2018, Paper, “Jamaica was considered to be exceptionally rich in the 18th century. Modern historians have tended to perpetuate this idea. This column uses novel methods to shed new light on living standards and inequality in colonial Jamaica. While the country was one of the most expensive places on the planet at the time, this wealth rested in the hands a very small white, slave-owning elite. The rest of the populace, many in slavery, lived at the very edge of subsistence.Link

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Trump’s trade wars and Brexit are making us all poorer

Trump’s trade wars and Brexit are making us all poorer. Jeffrey Frankel, November 27, 2018, Opinion, “The world is in a trade war and there is no sign of peace breaking out anytime soon. By now, the disruption to trade appears extensive enough to factor negatively into forecasts for economic growth. Does that mean the Federal Reserve should stop gradually raising interest rates?Link

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For Richer: The Effects of Marriage on Wealth Accumulation

For Richer: The Effects of Marriage on Wealth Accumulation. Alexandra Killewald, 2018, Paper, “Marriage is widely considered to benefit individuals’ economic well-being, including their net worth. Yet establishing the role of marriage in wealth generation is complicated by the dynamic and reciprocal nature of marriage and wealth: marriage is both the result of prior wealth and a potential determinant of future wealth. We use data from the NLSY79 and marginal structural models that account for these dynamic selection processes to estimate the effect marital histories on midlife wealth.Link

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We’re Richer Than We Realize

We’re Richer Than We Realize. Martin Feldstein, September 8, 2017, Opinion, “Government statistics paint an excessively grim picture of what is happening to real wages and the growth of real national income. Although most households’ take-home cash has been rising very slowly for decades, their standard of living is increasing more..Link

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Wealth Inequality and Accumulation

Wealth Inequality and Accumulation. Alexandra Killewald, July 2017, Paper, “Research on wealth inequality and accumulation and the data upon which it relies have expanded substantially in the twenty-first century. Although the field has experienced rapid growth, conceptual and methodological challenges remain. We begin by discussing two major unresolved methodological concerns facing wealth research: how to address challenges to causal inference posed by wealth’s cumulative nature and how to operationalize net worth given its highly skewed distribution. Next, we provide an overview of data sources available for wealth research. To underscore the need for continued empirical attention to net worth, we review trends in wealth levels and inequality and evaluate wealth’s distinctiveness as an indicator of social stratification. We then review recent empirical evidence on the effects of wealth on other social outcomes, as well as research on the determinants of wealth. We close with a list of promising avenues for future research on wealth, its causes, and its consequences.Link

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Generations of Advantage: Multigenerational Correlations in Family Wealth

Generations of Advantage: Multigenerational Correlations in Family Wealth. Alexandra Killewald, June 2017, Paper, “Inequality in family wealth is high, yet we know little about how much and how wealth inequality is maintained across generations. We argue that a long-term, life-course perspective reflective of wealth’s cumulative nature is crucial to understand the extent and channels of wealth reproduction across generations. Using data from the Panel Study of Income Dynamics that span nearly half a century, we show that a one decile increase in parental wealth position is associated with an increase of about 4 percentiles in offspring wealth position in adulthood.Link

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Why the U.S. Is Still Richer Than Every Other Large Country

Why the U.S. Is Still Richer Than Every Other Large Country. Martin Feldstein, April 20, 2017, Opinion, “Each year, the United States produces more per person than most other advanced economies. In 2015 real GDP per capita was $56,000 in the United States. The real GDP per capita in that same year was only $47,000 in Germany, $41,000 in France and the United Kingdom, and just $36,000 in Italy, adjusting for purchasing power. In short, the U.S. remains richer than its peers. But why?Link

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