Are College Graduates Better Off Today Than in the Past?

Time may only move in one direction - but just like a faster than light neutrino, let's ignore physics for a bit!  Inspired by this comment from an anonymous author, we will take you to the years 1976 and 1989 and look at life through the eyes of a recent college graduate. Methodology For our income data we visited our trusty stalwart of a data … [Read more...]

Fascinating Study: How One Economist Used Garbage Production to Estimate Consumption

What explains the difference in returns between stocks and bonds? One theory is that the difference in returns is due to the safety of bonds when consumption declines (the so called 'risk premium' is built into stock returns).  One of the issues with testing this hypothesis is that the most commonly quoted measure of consumption, the National … [Read more...]

Milton Friedman’s Permanent Income Hypothesis

Milton Friedman’s Permanent Income Hypothesis Revisited Milton Friedman is most certainly the most influential economist of the last fifty years and, perhaps with John Maynard Keynes, the most influential of the entire 20th century.  His theories and research continue to shape public policy debates even to today. One of Friedman’s most influential … [Read more...]