New Wealth Inequality Paper Confirms: Saving in Decline for the 90% feedly

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New Wealth Inequality Paper Confirms: Saving in Decline for the 90%
// Tax Foundation – Tax Foundation’s “Tax Policy Blog”

A new paper on wealth inequality from economists Emmanuel Saez and Gabriel Zucman – who have written frequently on the subject – was released earlier this month. This paper is far better than previous attempts to measure inequality. It includes pensions and other sources of wealth not taxed by the IRS – a shortcoming for which I have previously criticized measurements of inequality.

One of the most interesting findings in the paper was the finding that the saving rate had fallen extremely far for the lower 90% of America’s income distribution:

This is a trend I wrote about in a recent paper on the decline of saving and investment in America. It is worrisome that saving – which I believe is beneficial to society at large, but even more beneficial to the saver – is becoming an activity only for the rich.

Saez and Zucman further found that “saving inequality” actually drove wealth inequality even more than income did:

This is a problem worth correcting.

Some people simply earn too little to save. This is a problem that can only be addressed with a stronger, more competitive labor market. But the “bottom 90%” is a group that, as a whole, earns a lot of income. It includes plenty of people with six-figure salaries. It is puzzling and distressing to see savings so low for people who are, by all means, some of the richest on earth. Many of these households have six-figure incomes. One would think that they could put aside more. Increasing the caps on IRA contributions – or finding a more comprehensive tax treatment of saving – would probably help.

Saving cannot and should not be for the rich only.

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Daniel J. SmithSent via iPhone


Andrei Shleifer and Daniel Treisman | The Surprising Success of Postcommunist Countries | Foreign Affairs

http://www.foreignaffairs.com/articles/142200/andrei-shleifer-and-daniel-treisman/normal-countries

Daniel J. Smith
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A MINORITY VIEW: Embarrassing Economists

http://bethepeopletv.com/minority-view-embarrassing-economists/

Daniel J. Smith
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#19 – “Big Government Is a Check on Big Business” : The Freeman : Foundation for Economic Education

http://fee.org/the_freeman/detail/19-big-government-is-a-check-on-big-business

Daniel J. Smith
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About that CEO/employee pay gap – Economics – AEI feedly

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About that CEO/employee pay gap – Economics – AEI
http://www.aei.org/article/economics/about-that-ceoemployee-pay-gap/?utm_source=today&utm_medium=paramount&utm_campaign=101414#mbl
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Daniel J. SmithSent via iPhone


Government Is the Biggest Threat to Innovation, Say Silicon Valley Insiders feedly

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Government Is the Biggest Threat to Innovation, Say Silicon Valley Insiders
// Reason Magazine – Hit & Run

The biggest barrier to innovation in the United States is the government itself—so says a panel of “50 executives, innovators, and thinkers” surveyed by The Atlantic. Specifically, 20 percent of them say that government regulation/bureaucracy is the worst hurdle to creativity, while another 16 percent finger immigration policies as the worst offender.

Barriers to innovation

Unsurprisingly with this tech-savvy audience, more than three times as many (35 percent) consider Edward Snowden a “hero” as consider him a “traitor” (11 percent). Twenty-four percent pick “neither/it’s complicated.”

And what’s the biggest threat to privacy? While 8 percent of the panel picks government, twice as many put the blame on unconcerned citizens and a complacent culture (14 percent said Facebook and 11 percent tag Google).

See the full survey here.

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Daniel J. SmithSent via iPhone


Takings and Tax Revenue: Fiscal Impacts of Eminent Domain | Mercatus

http://mercatus.org/publication/takings-and-tax-revenue-fiscal-impacts-eminent-domain

Daniel J. Smith
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