Economics @ ITT

How the Temp Workers Are Getting Crushed

Posted in economics by ittecon on June 28, 2013

Across America, temporary work has become a mainstay of the economy, leading to the proliferation of what researchers have begun to call “temp towns.” They are often dense Latino neighborhoods teeming with temp agencies. Or they are cities where it has become nearly impossible even for whites and African-Americans with vocational training to find factory and warehouse work without first being directed to a temp firm.

via How the Temp Workers Who Keep Huge Corporations Running Are Getting Crushed | Alternet.

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We’re living in an Ayn Rand economy

Posted in economics, Taxation by ittecon on May 18, 2013

Ayn Rand’s philosophy suggests that average working people are “takers.” In reality, those in the best position to make money take all they can get, with no scruples about their working-class victims, because taking, in the minds of the rich, serves as a model for success. The strategy involves tax avoidance, in numerous forms.

via We’re living in an Ayn Rand economy – Salon.com.

Is Capitalism Dying?

Posted in economics, externalities, Policy Issues, Regulation by ittecon on May 8, 2013

It’as not very often that I agree with a large part of an article published by Forbes, but here is one.

Capitalism has been the dominant economic system in the Western world for, give or take, 400 years. And in that virtual eye blink in the grander scheme of things it has produced more wealth than all the prior economic systems put together.

via Is Capitalism Dying? – Forbes.

Black Woman Pretends To Be White, Job Offers Skyrocket

Posted in economics, employment by ittecon on April 10, 2013

Pathetic, but still happening in 2013. Anyone else surprised by this? I didn’t think so.

Spivey then created a fake profile, with identical information [to her original profile indicating that she is “African American”], except that her fictitious job candidate was white, and was aptly named “Bianca White” (Bianca means “white” in Spanish). Suddenly, responses from employers came pouring in.

Black Woman Pretends To Be White, Job Offers Skyrocket (VIDEO) | Addicting Info.

Conservatives Still Pushing Regressive Taxation Schemes

Posted in economics, Income Redistribution, Policy Issues, regressive taxation, Taxation by ittecon on January 29, 2013

[I]n Louisiana Mr. Jindal is pushing a plan to eliminate the state’s income tax, which falls most heavily on the affluent, and make up for the lost revenue by raising sales taxes, which fall much more heavily on the poor and the middle class. The result would be big gains for the top 1 percent, substantial losses for the bottom 60 percent.

via Makers, Takers, Fakers – NYTimes.com.

New Jersey Governor Vetoes Minimum Wage Increase

Posted in economics, employment, Policy Issues by ittecon on January 28, 2013

New Jersey Gov. Chris Christie R[epublican] today vetoed an increase in the minimum wage that was passed by the state’s Democratic senate. Using what’s known as a “conditional veto,” Christie sent the bill back saying he would sign it if certain changes were made, including: shrinking the increase from $8.50 to $8.25 per hour, phasing it in over three years, and eliminating a provision tying the wage to inflation.

via New Jersey Governor Vetoes Minimum Wage Increase | ThinkProgress.

US Poverty Explosion Hitting Young People Hardest

Posted in economics by ittecon on December 20, 2012

The mainstream media continues to insist that the economy is “getting better”, but the poverty numbers for children and young people just continue to explode.

via 20 Signs That The U.S. Poverty Explosion Is Hitting Children And Young People The Hardest.

The Road From Rags To Riches No Longer Passes through College

Posted in economics, education, employment by ittecon on December 20, 2012

The apparent benefit of higher education is mostly attributable to selection bias and network effects. The increase in tuition costs makes this an ROI model that won’t work for most, though through marketing and deliberate disinformation people are led believe that this is not only a path forward, but that it’s the best path.

[C]olleges are sold to you as the critical stepping stone on the path to wealth and prosperity, but sadly the empirical evidence demonstrates that when it comes to an actual, demonstrable income effect, only the wealthiest people actually benefit from a degree! The lowest fifth of household by income see their change in income decline by 10%, while the middle fifth sees an incremental 2.1% drop.

via Sorry (Poor) Kids: The Road From Rags To Riches No Longer Passes Through College | ZeroHedge.

How Middle Class Wealth Collapsed to a 40-Year Low

Posted in economics by ittecon on December 5, 2012

Between 2007 and 2010, the median net worth of U.S. households fell by 47 percent, reaching its lowest level in more than forty years, adjusted for inflation.

The Recession’s Toll: How Middle Class Wealth Collapsed to a 40-Year Low – Jordan Weissmann – The Atlantic.

A Case for a $15 an Hour Minimum Wage

Posted in economics, employment, Income Redistribution, microeconomics by ittecon on December 4, 2012

This report analyses and calls for a minimum wage in Chicago of $15 per hour. It is short and worth a quick read.

via A Case for $15.