Sep 10 U.S. Poverty Rising, Family Incomes Fall The poverty rate increased in 2008 to its highest point since 1997 and median household income declined 3.6 percent as the effects of the recession set in, according to new census data released Thursday. Continue reading
Aug 28 Consumer Spending Rises Slightly, But Confidence Falls Again As the nation looks for more signs of economic recovery, there were mixed signals on Friday as reports showed consumer spending rose slightly last month thanks in part to an increase in auto sales but incomes remained flat. Continue reading
Jul 24 Should the Government Set Up a National Lottery? Question: No one wants to pay higher taxes. But at the same time, many people don’t think twice about spending a few dollars a week on a lottery ticket. Why doesn’t the government set up a National Lottery to supplement… Continue reading
Jul 09 Why Do Tube Drivers Earn More than Bus Drivers in the UK? Robert Frank: A British reader posted the following query on my UK publisher’s web site: “Why do tube drivers get paid so much more than bus drivers?” An American economist trying to field questions about markets in the UK… Continue reading
Jul 02 Why Does Your Refrigerator Have a Light, But Not Your Freezer? Robert Frank: Today’s question was posed by my former student Karim Abdallah. “Why,” he asked, “does a light come on when you open the refrigerator but not when you open the freezer?” The cost-benefit principle offers a promising framework… Continue reading
Jun 26 Did U.S. Tax Policy Contribute to the Housing Bubble? Question: How much does (did) federal tax policy contribute to the housing bubble? If it was a contributing factor, how should that policy be reformed? Paul Solman: Not much, I wouldn’t think. Tax deductibility of mortgage interest has been… Continue reading
Jun 12 Watch Finance Fallacy: Stocks in the Long Run Financial advice is often loaded with misconceptions and misinformation. In the latest edition of Finance Fallacy, Paul Solman and Boston University professor Zvi Bodie debunk the belief that investing in stocks is the safest, smartest route to financial security over… Continue watching
Jun 05 Watch Fraud Charges Filed Against Countrywide Mortgage Chief The Securities and Exchange Commission has filed civil fraud charges against Angelo Mozilo, head of the Countrywide Financial mortgage firm, for misleading investors about the company's lending practices. Analysts assess the case's impact. Continue watching
Jun 04 Which Taxes Offer an Opportunity to Be Progressive? Question: What other taxes offer an opportunity to be progressive besides income and inheritance taxes? Paul Solman: Great question. I hope school is still in session. One alternative tax would be a progressive… Continue reading
Apr 20 Who Pays the Rating Agencies? Question: Who pays the rating agencies, like Moody’s? What is the source of their income? Paul Solman: That’s been the scandal. They’re paid by the issuers of the bonds and stocks they rate. They thus have a huge incentive not… Continue reading