Marilou quoted Ed Yardeni in her post this week, and since he is our favorite economist, and tends not to be too political, I thought his discussion on income inequality was worth repeating on our blog.

From his research Thursday:

Income equality is easy to achieve by making everyone but the ruling class poor. That has been and continues to be the modus operandi of totalitarian regimes. Capitalist systems are often infested with corrupt cronies, but true capitalists tend to prosper when their customers have more income to spend.


Meanwhile, the income inequality debate continues to rage on today. Progressives claim that it has worsened in recent years. They typically show a chart of real median household income, which has declined 9% from a record high of $56,900 during 1999 to $51,900 during 2013 In addition, they show that the share of income going to the top 1% is at a record high.


I’ve previously noted that the degree of income inequality may be exaggerated by demographic changes. For example, the percentage of singles in the adult population (i.e., aged 16 years and older) increased to 50% during February, up from 47% and 44% 10 and 20 years ago. Households composed of a single person tend to have lower incomes than those of a married couple. Young singles tend to be just starting their careers. Older singles tend to be retired and living on their savings, dividends, interest income, and government support. As the Baby Boomers age and their longevity increases, they could significantly distort the extent of income inequality.


Which raises an interesting question about the income inequality debate: What are we arguing about? The median household income data so frequently used to show that standards of living are stagnating for most Americans do not include government support payments. Could it be that the Progressives are right about worsening income inequality, but are ignoring the fact that the problem continues to be fixed by the very government programs that they implemented during their New Deal and Great Society heydays?”



Today’s Yardeni Morning Research Briefing – History Repeats Itself

by Marilou Long on March 25, 2015 in Geopolitical

Ed Yardeni is traveling in Spain this week, and this morning’s Research Briefing has some interesting historical perspective on the ongoing struggle between the West and Islamic terrorism: Crusades: Then & Now. While Christianity won the fight over Spain, it lost the battle for the Middle East. In 1095, Pope Urban II proclaimed the First […]

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RIP Lee Kuan Yew

by Laura Ehrenberg-Chesler on March 23, 2015 in Tribute

On Sunday, March 22 2015, the man they called “the Father of Singapore” died.  Mr. Yew was credited with bringing Singapore from a poor, developing country, up to first world standards within a generation.  While some of his methods or rules were controversial, and Singapore did not become a Western style democracy, it is undeniable […]

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March Madness Emojis

by Marilou Long on March 18, 2015 in lifestyle

The Washington Post has a cute article with emojis for all the NCAA mascots.  You can copy your favorite mascot.  Go Blue Devils!

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The Euro is Almost at Parity with the Dollar

by Marilou Long on March 10, 2015 in currencies

The Euro is currently trading at $1.07 which is the lowest level in eleven years. From the linked BusinessInsider article: Generally, the European Central Bank’s new quantitative-easing programme should tend to weaken the euro, and the Federal Reserve’s likely rate hikes should strengthen the US currency: When investments made in dollars can get a better […]

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Oil Closes Near $51

by Marilou Long on February 25, 2015 in Energy
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Two experiences worth blogging about

by Laura Ehrenberg-Chesler on February 19, 2015 in Employment

Over the long President’s weekend I bought a new iPhone 6, and took my 17 year-old son shopping for a sports coat and some shirts and pants.  I was dreading having to make those two outings.  But to my surprise, because of the great sales people at both places it was a great experience. David […]

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El-Erian’s Global Risk Meter – courtesy CNBC

by Marilou Long on February 17, 2015 in equity market
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The Siren Call of Greek Bonds

by Marilou Long on February 4, 2015 in Bonds

The S&P 500 gave up 0.4% right before the close on news that the ECB would no longer accept Greek government bonds as collateral.  From the linked Bloomberg article : Stocks fell in the final 30 minutes of trading as the European Central Bank said it lifted a waiver on Greek government debt as collateral. […]

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Follow up to the blog post of January 22, 2015

by Laura Ehrenberg-Chesler on February 3, 2015 in Commodities

In the Monday edition of our research from Ed Yardeni, he once again discusses the topic of the lack of inflation, and some of the forces at work that could actually be causing deflation.  Mr. Yardeni labels the forces at work as the “four horsemen of deflation”. “Four horsemen of deflation. Previously, I’ve discussed four deflationary forces. The […]

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