Posts Tagged ‘education’

tmp556216671317000192

tmp556216671832899584

tmp556216671870648320

The original cartoon, by Adam Bessie and Dan Carino, includes links to further reading embedded within the images.

incarceration

Neil Irwin, Claire Cain Miller, and Margot Sanger-Katz have assembled a series of charts documenting America’s enduring—and, in many cases, growing—racial divide. I have reproduced some of them below.

One of the key pieces of information they don’t include has to do with incarceration rates. As you can see from the chart above (from the Pew Research Center [pdf]), African American men were 5 times more likely to be incarcerated in 1960 than white men (relative to the size of each demographic group)—a rate that grew to over 16.5 in 2010.

Here are the other charts:

joblessness

unemployment

higher education

workplace

pay

wealth

health

homicide

11414332504_dce6ef5442_b

After more than thirty years of rising inequality, and in the midst of the Second Great Depression, the financial situation of many U.S. households is dire.

That’s my interpretation of the results of the Federal Reserve’s latest report on the economic well-being of American households.

Here are some of the facts contained in the report:

Overall, only 30 percent of the respondents considered themselves to be better off financially than they were in 2008.

In terms of credit-card debt, only 57 percent of respondents reported that they pay off their balances in full each month. (Among the remaining 43 percent who revolve their credit card balances, 82 percent had been charged interest on their balance at some time in the prior 12 months.)

The median percentage of 2102 income reported saved was only 2 percent (the mean was much higher, 9 percent), while 45 percent of respondents reported that they were not able to save any portion of their income in 2012.

Respondents were asked how they would pay for an emergency expense that came along and cost $400. The majority responded that covering such an expense would be a challenge: 19 percent indicated that they simply could not cover the expense; 9 percent would have to sell something; or would have to rely on one or more means of borrowing to pay for at least part of the expense, including paying with a credit card that they pay off over time (17 percent), borrowing from friends or family (12 percent), or using a payday loan (4 percent).

student debt

24 percent of respondents have education debt for themselves, someone else (spouse, child, or grandchild), or a combination of the two. Among those with each type of education debt, the average amount people reported owing for their own education was $25,750, with a median value of $13,000. Overall, 37 percent of respondents said that the financial costs of education outweighed the benefits. Those who did not complete their program of study were far more likely (56.5 percent) than others (38 percent for those who completed programs, 17 percent for those still enrolled) to say that the financial benefits of their education were much smaller than the cost.

When asked if they could afford to cover the cost of a major out-of-pocket medical expense, 43 percent of all respondents said that it was not likely that they could afford to pay. Only 21 percent of respondents indicated that it was very likely they could afford to pay for a major out-of-pocket medical expense. In fact, almost a quarter of respondents experienced what they described as a major unexpected medical expense that they had to pay out of pocket in the prior 12 months. The result? One quarter of respondents went without dental care in the prior 12 months because they could not afford it, 18 percent went without a doctor visit, 15 percent went without prescription medicine, 11 percent went without a visit to a specialist, and 10 percent went without follow-up care. Overall, 34 percent of respondents reported going without at least one of these types of care because they could not afford it.

retirement

Finally, 23 percent of Americans who are near retirement age (ages 45 to 59) have zero money saved. So, what are they planning to do? Basically, rely on Social Security benefits (58 percent), continue working (25 percent), and/or expect their spouse/partner to keep working (11 percent). Not surprisingly, people’s expectations depend on their level of income:

Responses to the question about the path to retirement also vary consistently by income, indicating that expectations around retirement are closely linked to financial circumstances. While 35 percent of those earning six figures reported that they intend to work full time until a retirement date and then stop working, only 15 percent of those earning less than $25,000 intend to do so. Similarly, 28 percent of those earning less than $25,000 indicated that they expect to “keep working as long as possible,” while only 13 percent of those earning $100,000 or more said the same.

The bottom line: a very large group of Americans are financially on the edge. They’re broke and getting broker.

Income-Inequality02

Tyler Cowen may just be right about one thing: people’s views of inequality seem to be changing.

“I view opinion as in flux,” Mr. Cowen said. “I find that fewer and fewer people, especially outside of academia, accept the skill-biased technical change story and more and more look to politics, privilege, rent-seeking and the like.”

Even while mainstream economists (like Cowen and Gregory Mankiw) are sticking with their story of just deserts—such that those at the very top continue to benefit from rewards to better skills, technical change, and globalization—and the only feasible solution is more education, lots of others—including heterodox economists and the general public—are looking elsewhere for both explanations of and solutions to the problem of growing inequality in the United States.

And that’s why the Cowens and Mankiws of the world want to change the topic: to worry about the global distribution of income and/or to argue that little can be done about inequality without undermining economic growth.

But they’re wrong. And people seem to be catching on to what’s happening behind the curtain. . .

0727toonwasserman2

Special mention

Online Education twostatesol_1_590_432

718-1cGEFi.AuSt.91

Special mention

151471_600 151484_600

the-strip-slide-5GWG-jumbo

Special mention

mqv7s.AuSt.79 mike3may