Poverty remains high in the United States, even as the economy has partially recovered.
Increasing concentration of income among top earners may reflect changing corporate structures.
There are many ideas out there about how earnings, real and expected, affect spending. Milton Friedman’s 1957 Permanent Income Hypothesis is probably the most famous. In its strictest form, it implies that changes in current income, such as a raise or inheritance, shouldn’t change consumption at all. That’s an awfully strong statement. In 1989, John […]