In the New York Times today, Luigi Zingales floated out what most probably consider a terrible idea for financing college education: private investors buying out equity stakes in students’ future income. Investors could finance students’ education with equity rather than debt. In exchange for their capital, the investors would receive a fraction of a student’s… Continue reading Equity financing for college education
Author: Matt Bruenig
Military suicide rate and the importance of demographic controls
Military suicides are in the news again. This year, we have seen an average of one active-duty suicide per day, which is more than the number of combat fatalities in the same period. All suicides are tragic, and clearly the number of military suicides is up from previous years. However, that does not mean that… Continue reading Military suicide rate and the importance of demographic controls
Remember oil price hysteria?
Back in February, a short-term spike in oil prices managed to find itself into the cacophony of stupidity that is right-wing cable and television programming. The sentiments expressed ranged from Obama being a failure because he cannot control oil prices to Obama conspiring to raise oil prices to serve his environmentalist agenda. I had a… Continue reading Remember oil price hysteria?
Everything about the economy is a distortion
John Cassidy had a piece a few days ago at the New Yorker about class warfare in America. Buried in the piece, he makes a point that really deserves underscoring: The argument of free-market economists that productivity determines wages and profits is mistaken. Productivity determines the over-all size of the pie. How it is distributed… Continue reading Everything about the economy is a distortion
All the merit money can buy
Chris Hayes has an excellent piece in The Nation about the slipperiness of meritocracy in the United States. In it, Hayes establishes what he calls the Iron Law of Meritocracy: The Iron Law of Meritocracy states that eventually the inequality produced by a meritocratic system will grow large enough to subvert the mechanisms of mobility.… Continue reading All the merit money can buy